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Japan Calendar, Feb. 27-March 2 | By Tokyo newsroom +81-3-3201-8950 | 2012-02-26T21:00:01Z | http://www.bloomberg.com/news/2012-02-26/japan-calendar-feb-27-march-2.html | 2 | 26 | 536573195957479dbec3e57c577d9ce7 | The following is a calendar of
expected financial events in Japan . Other calendars can be found
at: {ECO JN <GO>} for economic indicators, {ACDR <GO>} for
earnings, and {CACT <GO>} for corporate actions. Times may
change. Feb. 27 Economic Releases:
14:00 Cabinet Office releases Feb. regional economic trend. Other Events:
NA Nihonwasou Holdings Inc. shares begin trading on Tokyo Stock Exchange’s Second Section.
11:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
11:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
16:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
18:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster. Feb. 28 Economic Releases:
08:50 Current survey of commerce for Jan.
08:50 Input-output price index of manufacturing industry by sector, Jan. Other Events:
NA Finance Minister Jun Azumi, Economy Minister Motohisa Furukawa and Chief Cabinet Secretary Osamu Fujimura give press conferences following a Cabinet meeting.
09:00 Japan Atomic Energy Commission holds meeting in Tokyo on new nuclear policy.
10:20 Announcement of Treasury Discount Bills.
10:30 Auction notice of 2-year Japanese government bonds .
10:30 Announcement of 30-year Japanese government bonds.
11:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
12:45 Auction result of 2-year Japanese government bonds.
16:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
18:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster. Feb. 29 Economic Releases:
08:50 Industrial production for Jan.
08:50 Average contract interest rates on loans and discounts, Jan.
08:50 Commitment lines extended by Japanese banks, Jan.
08:50 Deposit, vault cash, and loans and discounts outstanding by prefecture for Jan.
11:00 Electricity demand for Jan., final report.
13:00 Vehicle production for Jan.
13:30 Oil statistics for Jan.
14:00 Housing starts for Jan.
14:00 Value of construction orders for Jan. Other Events:
NA Tokyo Sky Tree construction to be completed.
10:00 Bank of Japan policy board member Hidetoshi Kamezaki gives speech in Fukuoka prefecture, followed by a press conference at 14:00.
10:20 Auction notice of Treasury Discount Bills.
10:20 Announcement of Treasury Discount Bills.
11:00 Payment and settlement statistics, Jan., Bank of
Japan.
11:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
11:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
12:35 Auction result of Treasury Discount Bills.
16:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
18:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
19:00 Foreign exchange intervention operations, Feb., Ministry of Finance.
19:30 Sources of changes in current account balances at the Bank of Japan and market operations, preliminary figures for Feb. March 1 Economic Releases:
08:50 International transactions in securities.
08:50 Financial statements statistics of corporations by industry for October to December period, Ministry of Finance.
10:00 Digital camera shipment volume for Jan.
14:00 Unit sales of new vehicles for Feb.
14:00 Unit sales of light vehicles for Feb. Other Events:
10:30 Auction notice of 10-year Japanese government bonds.
10:30 Announcement of 5-year Japanese government bonds.
11:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
11:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
12:45 Auction result of 10-year Japanese government bonds.
13:00 Sources of changes in current account balances and market operations for Feb.
16:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
18:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster. March 2 Economic Releases:
08:30 Jobless rate for Jan.
08:30 Job-to-applicant ratio for Jan.
08:30 Household spending for Jan.
08:30 Consumer price index .
08:50 Monetary base for Feb. Other Events:
NA Finance Minister Jun Azumi, Economy Minister Motohisa Furukawa and Chief Cabinet Secretary Osamu Fujimura give press conferences, following a Cabinet meeting.
08:50 Sources of changes in current account balances, projections for March.
10:00 Bank of Japan accounts as of Feb. 29.
11:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster.
11:00 Thailand’s former prime minister, Abhisit Vejjajiva, gives press conference at Japan National Press Club in Tokyo.
16:00 Chief Cabinet Secretary Osamu Fujimura gives regular press conference.
18:00 Japan Automobile Dealers Association holds meeting at Tokyo Prince Hotel.
18:00 Tokyo Electric Power Co. gives press conference on Fukushima Dai-Ichi nuclear disaster. | 2012 | japan-calendar-feb-27-march-2 |
Daytona 500’s Start Is Pushed Back Until the Evening as Rain Soaks Track | By Erik Matuszewski and Dex McLuskey | 2012-02-27T16:02:28Z | http://www.bloomberg.com/news/2012-02-26/stock-cars-return-to-garage-as-weather-postpones-daytona-500-until-monday.html | 2 | 26 | a937317cc836e8b18ed1313947c128062771f06e | Nascar further delayed the start of
its season-opening Daytona 500 race until 7 p.m. local time
today as rain continued to fall on the track. The race at Daytona International Speedway in Daytona
Beach , Florida , was originally postponed until noon today after
rain wiped out yesterday’s planned start. It’s the first time
the race has been postponed by weather in its 54-year history. Nascar disclosed the latest delay on its website . “This doesn’t do us any good,” Robin Pemberton, Nascar’s
vice president of competition, told ESPN after the race was
postponed yesterday following a delay of more than three hours.
“There could be a setback for ratings reasons, but we’ve got
great fans. We’ll overcome like we do everything else that comes
across us. We’ll hope for the best and move forward.” The Daytona 500 was shortened because of rain in 1965,
1966, 2003 and 2009, yet this marked the first time since it was
first run in 1959 that the race was pushed back a day because of
poor weather. Nascar used jet dryers yesterday to try to dry the 2.5-mile
(4 kilometer) oval track before heavier showers returned later
in the afternoon. More rain fell through the evening, ending any
chance to run the race under the lights and officials decided to
postpone the 200-lap race just after 5 p.m. “It’s definitely frustrating,” said Jimmie Johnson, the
2006 Daytona 500 winner and five-time Nascar season champion.
“Unfortunately there’s nothing you can do when Mother Nature
takes over like this. I’m disappointed for our fan base.” The race will be televised today on Fox, and Nascar said
tickets will be available at the gate or the Daytona ticket
office. Carl Edwards is in the pole position with his Roush
Fenway Racing teammate Greg Biffle alongside him on the front
row. “I know a lot of race fans are disappointed and a lot of
people at home on TV, but I just hope they tune in,” Biffle
told ESPN. “It will be a great race.” Danica Patrick is 29th on the grid in her first start in
the race. Trevor Bayne, who won last year at his first attempt a
day after his 20th birthday to become the youngest champion,
starts in 40th place. To contact the reporters on this story:
Erik Matuszewski in New York at
matuszewski@bloomberg.net ;
Dex McLuskey in Dallas at
dmcluskey@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at
msillup@bloomberg.net | 2012 | stock-cars-return-to-garage-as-weather-postpones-daytona-500-until-monday |
Utah Jazz’s Jeremy Evans Wins Slam-Dunk as Sub for Knicks’ Shumpert | By Nancy Kercheval | 2012-02-26T05:18:33Z | http://www.bloomberg.com/news/2012-02-26/utah-jazz-s-jeremy-evans-wins-slam-dunk-as-sub-for-knicks-shumpert.html | 2 | 26 | 0564d5738badd6a3bed9de285f0ff36e5409b856 | Utah Jazz’s Jeremy Evans needed only
four days to choreograph the winning performance in the Slam-
Dunk competition during the National Basketball Association ’s
All-Star weekend. Evans, who replaced an ailing Iman Shumpert of the New York
Knicks , dunked a ball with a camera strapped to his head to give
a player’s eye view, dunked two balls at once and jumped over
comedian Kevin Hart to sink a basket. “It’s amazing to come out here and give the fans what they
want,” Evans, who won 29 percent of the fans’ votes, said in a
televised interview. Evans competed against three other first-time participants,
including Houston Rockets Chase Budinger, who jumped over rap
artist Sean Combs, known as Diddy, and sunk a basket blindfolded. Indiana Pacer Paul George vaulted over 6-foot-7 Dahntay Jones and 7-foot-2 Roy Hibbert, as well as sporting a glow-in-
the-dark uniform and sinking a ball on a 360-degree windmill in
the dark and stamping the backboard with Larry Bird faces as he
dunked the ball. Minnesota Timberwolves Derrick Williams jumped a motorcycle,
took a bounce off the side of the backboard before dunking the
ball, and tried unsuccessfully to hit the basket after throwing
the ball through his legs. Shumpert withdrew from the competition because of knee
tendinitis. Earlier in the week, he said he planned to jump a
couch, a symbol of teammate Jeremy Lin’s humble beginnings
sleeping on sofas at his brother’s and teammate’s houses before
he became a top scorer for the Knicks three weeks ago. 3-Pointers, Skills Timberwolves’ Kevin Love won the 3-point competition,
besting defending champion James Jones and Mario Chalmers of the
Miami Heat , Anthony Morrow of the New Jersey Nets , Kevin Durant
of the Oklahoma City Thunder and Ryan Anderson of the Orlando
Magic . San Antonio Spurs’ Tony Parker won the Skills Challenge,
which called for the participants to shoot, pass and dribble
through an obstacle course. The New York team of Knicks’ Landry Fields, Cappie
Pondexter of the New York Liberty in the Women’s National
Basketball Association, and Allan Houston, who played for the
Knicks for nine years before joining the front-office staff, won
the Shooting Stars competition. The All-Star game between the East and West begins tonight
at Amway Center in Orlando, Florida . To contact the reporter on this story:
Nancy Kercheval in Washington at
nkercheval@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at
msillup@bloomberg.net | 2012 | utah-jazz-s-jeremy-evans-wins-slam-dunk-as-sub-for-knicks-shumper |
Eni Split From Snam May Lead to Lower Gas Bills, Passera Says | By Francesca Cinelli | 2012-02-26T12:38:01Z | http://www.bloomberg.com/news/2012-02-26/eni-split-from-snam-may-lead-to-lower-gas-bills-passera-says.html | 2 | 26 | a0fe67e50abcfb9e37b9605ea0ebe13d79dd9b37 | The separation of Eni SpA (ENI) from its
gas-network unit Snam Rete Gas SpA (SRG) may lead to lower gas bills
through a more competitive market, Economic Development Minister
Corrado Passera told Sky TG24 in an interview. To contact the reporter on this story:
Francesca Cinelli in Milan at
fcinelli@bloomberg.net To contact the editor responsible for this story:
James Ludden at
jludden@bloomberg.net | 2012 | eni-split-from-snam-may-lead-to-lower-gas-bills-passera-says |
Iran to Work With International Atomic Agency, Tehran Times Says | By Ladane Nasseri | 2012-02-26T07:45:21Z | http://www.bloomberg.com/news/2012-02-26/iran-to-work-with-international-atomic-agency-tehran-times-says.html | 2 | 26 | bd4516047eb0cfc084e86b402b27329522bce07a | Iran will cooperate with the
International Atomic Energy Agency to prove that claims
regarding the country’s nuclear program are unfounded, Tehran
Times reported, citing Iran’s ambassador to the organization,
Ali Asghar Soltanieh. Soltanieh said Iran didn’t reject the IAEA’s request to
visit the Parchin military complex and that the “framework must
be agreed on for any access” to it, the Tehran Times reported.
Soltanieh spoke on Feb. 24 after the IAEA issued its latest
report on Iran’s nuclear activities to member states, the
newspaper said. To contact the reporter on this story:
Ladane Nasseri in Dubai at
lnasseri@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | iran-to-work-with-international-atomic-agency-tehran-times-says |
Persian Gulf Stocks: United Development, United International | By Zahra Hankir | 2012-02-26T12:53:08Z | http://www.bloomberg.com/news/2012-02-26/persian-gulf-stocks-air-arabia-and-united-development-moved.html | 2 | 26 | 288b36ea9c10e6c9fd3b8c0b3aa9b647fd4054ed | Dubai’s DFM General Index (DFMGI) surged 2.7
percent to 1,676.49, the highest since April 21, at the 2 p.m.
close in the emirate. Abu Dhabi ’s ADX General Index (ADSMI) gained 1.3
percent. Saudi Arabia’s Tadawul All Share Index (SASEIDX) increased 0.2
percent. Mohammad Al-Mojil Group (MMG) Co slumped 10 percent to
17.2 riyals, bringing its drop in the past two days to 19
percent, the biggest such slump on record. The Saudi Arabian
construction services provider said its fourth-quarter loss
widened to 1 billion riyals from 215.2 million a year earlier. United Development Co. (UDCD) climbed to the highest in
a month, gaining 1.2 percent to 25.2 riyals. The Qatari company
involved in infrastructure and energy said an investor is
seeking to become a strategic shareholder. United International Transportation Co. (BUDGET) surged
to the highest since October 2010, advancing 1.3 percent to
57.75 riyals. The Saudi Arabian car-rental company said it will
seek shareholders approval to raise its capital by 33 percent to
244 million riyals ($65 million). To contact the reporter on this story:
Zahra Hankir in Dubai at
zhankir@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | persian-gulf-stocks-air-arabia-and-united-development-moved |
Asian Stocks Retreat as Higher Oil Damps Optimism | By Kana Nishizawa and Gan Yen Kuan | 2012-02-27T11:18:36Z | http://www.bloomberg.com/news/2012-02-26/japan-stock-futures-rise-as-yen-falls-to-9-month-low-boosting-exporters.html | 2 | 26 | 22e6c9a73b304005b5bb00f965231e8f | Asian stocks fell, with a regional
benchmark index retreating after a record 10-week advance, as
oil near a nine-month high and continued concern that Greece
will not be able to avoid a default spurred investors to lock in
gains. Korean Air Lines Co., the nation’s biggest carrier by
market value, sank 5.3 percent in Seoul. Esprit Holdings Ltd. (330) , a
clothier that gets most of its revenue from Europe , slid 3
percent in Hong Kong . Sony Corp. (6758) , Japan ’s No. 1 exporter of
consumer electronics, gained 1.2 percent in Tokyo as the yen
fell to a nine-month low against the dollar, boosting the
earnings outlook for the country’s exporters. The MSCI Asia Pacific Index slid 0.8 percent to 126.97 as
of 8:16 p.m. in Tokyo, accelerating its drop after Moody’s
Investors Service said the risk that Greece will default
“remains high.” The index advanced for a 10th week last week,
its longest run of gains since its inception in 1988. Shares
rose amid confidence China will ease monetary policy and signs
the U.S. economy is improving. “Oil prices are definitely a concern,” Bharat Joshi, who
helps manage $5 billion at Kuala Lumpur-based Aberdeen Asset
Management Sdn., said in a telephone interview today. “People
are worried about inflation trickling into the economy. The
market has also risen quite dramatically. The issue with Greece
and Europe continues to be in the background.” Japan’s Nikkei 225 Stock Average (NKY) slipped 0.1 percent after
swinging between gains and losses. The yen touched 81.67 per
dollar today, the lowest level since May 31. A weaker yen boosts
exporters’ overseas earnings when repatriated. Sony gained 1.2 percent to 1,760 yen, while Honda Motor
Co., Japan’s second-largest carmaker by market value, rose 1.6
percent to 3,140 yen. Boost to Exporters A gauge of smaller companies on the Tokyo bourse’s second
section rose for a 30th day, extending its longest stretch of
gains since 1961. Kagetsuenkanko Co., a hotel and resort
manager, climbed 40 percent to 161 yen, the biggest increase on
the TSE Second Section Price Index. The stock has risen 475
percent since Jan. 16, the last close before the gauge began its
streak. “It’s a huge fuel for Japanese exporters if the yen can
maintain or continue to depreciate from current levels given
it’s been such a substantial headwind,” said Tim Schroeders ,
who helps manage $1 billion in equities at Pengana Capital Ltd.
in Melbourne. The MSCI Asia Pacific Index (MXAP) gained 12 percent this year
through yesterday, compared with an 8.6 percent increase by the
S&P 500 and an 8.3 percent advance by the Stoxx Europe 600
Index. Stocks in the Asian benchmark are valued at 14.9 times
estimated earnings on average, compared with 13.1 times for the
S&P 500 and 11.1 times for the Stoxx 600. Leadership Ballot Australia’s S&P/ASX 200 Index slid 0.9 percent. Australian
Prime Minister Julia Gillard defeated former leader Kevin Rudd
in a Labor Party leadership ballot today, leaving her to unite
the government and revive poll ratings before elections due in
2013. Singapore’s Straits Times Index fell 1.1 percent. South
Korea’s Kospi (KOSPI) Index retreated 1.4 percent. Inflation may exceed
the South Korean government’s target as oil prices rise, Finance
Minister Bahk Jae Wan said at the weekend in Mexico City, where
leaders from the Group of 20 nations met. Crude for April delivery slid as much as 0.8 percent today.
Oil gained 1.8 percent to $109.77 a barrel in New York on Feb.
24, advancing for a seventh day, the longest stretch since
January 2010. Airlines Retreat Korean Air Lines slumped 5.3 percent to 50,000 won in
Seoul, while ComfortDelGro Corp. (CD) , a bus, taxi and car leasing
provider, fell 2.7 percent to S$1.470 in Singapore. Air China
Ltd. the world’s biggest carrier by market value, fell 5.9
percent to HK$5.59 in Hong Kong. “The higher the oil price goes, the bigger the brake on
consumers, which is concerning,” said Matt Riordan, who helps
manage $6.8 billion in Sydney at Paradice Investment Management
Pty. “Europe still has work to do in terms of the great bailout
and there seems to be some things various parties can’t agree
upon, so that’s winding down on the market at the moment.” Hong Kong’s Hang Seng Index (HSI) fell 0.9 percent, reversing an
earlier advance. China’s Shanghai Composite Index gained 0.3
percent on expectations the government will further ease
monetary policies to spur economic growth. Shanghai Securities
News reported today interbank deposits should be added to the
calculation of loan-to-deposit ratios for banks to help boost
lending, citing former People’s Bank of China Deputy Governor Wu
Xiaoling . U.S. Futures Futures on the Standard & Poor’s 500 Index (SPXL1) dropped 0.5
percent today. The index climbed 0.2 percent in New York on Feb.
24 amid better-than-estimated consumer sentiment and home sales
reports. German lawmakers vote on a second Greek rescue package
today and European Union heads of government hold a summit March
1-2 in Brussels. Esprit fell 3 percent to HK$17.24 in Hong Kong, while HSBC
Holdings Plc, Europe’s biggest bank by market value, declined
1.2 percent to HK$69.60. The world economy is “not out of the danger zone” amid
fragile financial systems, high public and private debt and
rising oil prices, International Monetary Fund Managing Director
Christine Lagarde said in a statement after the weekend G-20
meeting. Himart Co. (071840) , a consumer electronics retailer, tumbled 15
percent to 64,300 won in Seoul. Prosecutors confiscated
documents and a computer during a raid on the company’s
headquarters, Himart spokesman Yang Dong Chul said, declining to
say why the raid took place. Elpida Debts Elpida Memory Inc., the Japanese chipmaker facing an April
deadline to repay debts, will file for bankruptcy protection as
soon as today, according to a person with direct knowledge of
the matter, who requested anonymity before an official
announcement. The Nikkei reported earlier after the market close
that the company will file for bankruptcy protection. The stock
rose 0.6 percent to 334 yen. Parco Co. (8251) , an operator of shopping centers, jumped 11
percent to 855 yen in Tokyo after J Front Retailing Co. agreed
to buy 33 percent of its competitor. To contact the reporters on this story:
Kana Nishizawa in Hong Kong at
knishizawa5@bloomberg.net ;
Gan Yen Kuan in Kuala Lumpur at
ykgan@bloomberg.net . To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net | 2012 | japan-stock-futures-rise-as-yen-falls-to-9-month-low-boosting-exporters |
HTC Tells Analysts Seeing Sales Drop to Mind Information ‘Gap’ | By Cornelius Rahn and Tim Culpan | 2012-02-27T10:42:54Z | http://www.bloomberg.com/news/2012-02-26/htc-ceo-tells-analysts-to-mind-information-gap-.html | 2 | 26 | 65ffd17a87188f12afe7ebc0691a7e6647c9f902 | HTC Corp. (2498) Chief Executive Officer
Peter Chou said analysts forecasting the biggest sales drop on
record are lacking sufficient information about the product
lineup of Asia ’s second-largest smartphone maker. “We respect peoples’ opinions, they have an opinion based
on what they see, that’s fine, but they don’t know what we’re
working on,” Chou said in an interview yesterday at the Mobile
World Congress in Barcelona. “So there’s always a gap.” HTC, once one of the most-fancied smartphone makers among
analysts, has missed revenue estimates in three straight
quarters because of competition from Apple Inc. (AAPL) ’s iPhone and
Samsung (005930) Electronic Co.’s Galaxy handsets. Chou, one of the
smartphone maker’s founders, presented the multimedia-focused
HTC One smartphone series to help claw back market share. “They were in heaven because they felt they were the king
of the hill - growing extremely fast, over 100 percent growth
rates year on year and they thought it would last forever,”
said IDC researcher Francisco Jeronimo. “But it won’t. The
market changed very quickly.” HTC in October forecast fourth-quarter sales below average
analyst estimates after already missing in the prior period. The
maker of Sensation and Desire handsets cut that outlook less
than a month later before forecasting revenue this quarter that
also fell below the average of estimates. Shenzhen Duo HTC has gained 27 percent this year, after dropping 42
percent in 2011. The Taipei stock exchange is closed today for
holiday. Twelve of 35 analysts surveyed by Bloomberg recommend
investors sell HTC, compared with eight who say “buy.” Shenzhen-based rival ZTE Corp. (000063) is also trying to grab a
larger share of the growing market for smartphones and tablet
computers. The company, which unveiled eight handsets in
Barcelona today, has a target to become the third-biggest maker
of mobile devices this year after reaching the No. 4 spot in the
most recent quarter, said He Shiyou, a ZTE board member. Huawei Technologies Co., also based in Shenzhen, may triple
the number of smartphones it delivers to 60 million this year as
it takes aim at the iPhone and new handsets by Nokia Oyj (NOK1V) , said
Richard Yu, chairman of the company’s devices unit. Huawei
yesterday unveiled the Ascend D quad handset, calling it “the
world’s fastest smartphone.” The device will cost 15 percent to
20 percent less than “comparable phones.” ‘Hero’ Phones HTC’s sales will drop 32 percent this quarter from a year
earlier to NT$70.7 billion, according to the average of 21
analyst estimates compiled by Bloomberg. That’s the biggest
year-on-year revenue drop since it listed on the Taiwan stock
exchange ten years ago. Chou said the company has signed up 144 wireless operators
for the new device series, which features continuous photo
shooting, quick shutter speeds and sound-file management
software. Chou last year opened up Studio, a new division in the
company tasked with developing “hero” products that will
represent the HTC brand and recapture the glory of top sellers
such as HTC Desire which was released two years ago. HTC’s
strategy will focus more on specific customer groups, especially
ones desiring multi-media functions, he said. “We believe different people want different things, one
size doesn’t fit all,” Chou said. “That’s why we created a
series of HTC One products, because they deliver awesome
experiences, amazing camera and authentic sound.” To contact the reporters on this story:
Cornelius Rahn in Barcelona at crahn2@bloomberg.net ;
Tim Culpan in Taipei at
tculpan1@bloomberg.net . To contact the editors responsible for this story:
Kenneth Wong at kwong11@bloomberg.net ;
Michael Tighe at mtighe4@bloomberg.net . | 2012 | c-ceo-tells-analysts-to-mind-information-gap- |
Frankfurt Flights Canceled as Strike Resumes Following Talks | By Alex Webb and Tony Czuczka | 2012-02-27T17:59:04Z | http://www.bloomberg.com/news/2012-02-26/frankfurt-airport-ground-controllers-expected-to-resume-strike.html | 2 | 26 | 059dbba5d2ed59a0977ff0c48d3243bcdf061912 | Frankfurt Airport (FRA) said as many as
200 flights, or 15 percent of the total, would be canceled today
after ground controllers resumed strike action following the
failure of talks over pay and the outsourcing of contracts. The walkout began at 9 p.m. yesterday and is scheduled to
end at 5 a.m. on March 1, Gewerkschaft der Flugsicherung union
spokesman Matthias Maas said today, adding that the labor group
has agreed to extend the action into other operational areas
which would “severely damage” airport owner Fraport AG (FRA) . Deutsche Lufthansa AG (LHA) , which has its hub in Frankfurt, will
scrap about 140 flights today at Europe ’s third-busiest airport,
spokeswoman Claudia Lange said, maintaining “more than 80
percent of normal operations,” including all long-haul services. Talks aimed at ending the dispute, which involves 200 staff
responsible for directing planes as they taxi and park, broke
down Feb. 24 after Fraport offered terms similar to those agreed
at Munich airport. That deal was worth less than one proposed
before the start of mediation, according to the GdF. Broader Protest “We made it clear today that we expect the GdF to accept
the very good offer that we made last week,” Fraport spokesman
Mike Schweitzer said by phone after the companied issued details
of the terms rejected by the union. The GdF will no longer give 24 hours’ notice of action by
ground-control staff, and may call out members in other fields
in support of the protest, Maas said. The union has said it favors proposals from mediator Ole von Beust for a two-step monthly wage increase of between 200
euros ($269) and 1,600 euros. It also wants any outsourced jobs
to move to a single company on a single contract. Fraport had fallen 1.5 percent to 47.06 euros as of the
close in Frankfurt . Lufthansa, Europe’s second-biggest airline,
declined 2.4 percent to 10.17 euros as the seven member
Bloomberg EMEA Airlines Index slipped 1.6 percent. To contact the reporters on this story:
Tony Czuczka in Berlin at
aczuczka@bloomberg.net ;
Alex Webb in Frankfurt at
awebb25@bloomberg.net To contact the editors responsible for this story:
Chad Thomas at
cthomas16@bloomberg.net ;
James Hertling at
jhertling@bloomberg.net | 2012 | frankfurt-airport-ground-controllers-expected-to-resume-strike |
U.K. in Talks With Somalia’s Puntland About Oil, Observer Says | By Catherine Airlie | 2012-02-26T14:11:49Z | http://www.bloomberg.com/news/2012-02-26/u-k-in-talks-with-somalia-s-puntland-about-oil-observer-says.html | 2 | 26 | 7eeeb6c0f03d1d205ca8095d0a12d320f8326e8b | Officials from the U.K. and
Somalia’s Puntland region are in talks about oil reserves in the
north eastern part of the African country, the Observer
reported , citing an interview with Abdulkadir Abdi Hashi,
minister for international cooperation in the state of Puntland. U.K. officials will help Somalia “maximize future
earnings” from oil, Abdi Hashi was reported to have said.
Puntland is expected to produce its first oil next month,
according to the report. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | u-k-in-talks-with-somalia-s-puntland-about-oil-observer-says |
Romney Says He Has the Momentum to Win Michigan Primary | By Clea Benson and Sara Forden | 2012-02-27T05:00:27Z | http://www.bloomberg.com/news/2012-02-26/romney-predicts-victory-in-michigan-as-voter-polls-show-gains-on-santorum.html
Republican presidential contender
Mitt Romney predicted that he will win the primary election in
his home state of Michigan tomorrow as polls show him gaining on
rival Rick Santorum . Romney cited a Rasmussen poll, released Feb. 24, that
showed him with a 6 percentage-point lead over Santorum. The
same poll more than a week ago showed Santorum with a 15-point
lead. “That’ll be huge, having come from so far behind here in
Michigan,” the former Massachusetts governor said on the “Fox
News Sunday” program. “Obviously, the momentum is in the right
direction.” A Romney loss in Michigan, where he spent his boyhood and
where his father, George Romney , served as governor and an
automobile company chief executive officer, would be a blow to
his candidacy. Romney has been struggling to retain his front-
runner status since Santorum swept the Feb. 7 contests in
Colorado, Missouri and Minnesota . Romney, 64, leads in Arizona , which will also hold a
primary tomorrow. Arizona’s Republican governor, Jan Brewer,
endorsed Romney yesterday during an appearance on NBC’s “Meet
the Press.” “Mitt is by far the person who can go in and win,” Brewer
said. Koran Burning As tomorrow’s primaries approach, Santorum and Romney have
been attacking President Barack Obama and asserting their own
conservative credentials. Both men, in talk show appearances yesterday, criticized
the president for apologizing for the burning of Korans by
American troops at Bagram Air Field near Kabul, which sparked
violent protests and led to the killing of two American military
advisers. “A mistake was made | 2 | 26 | dc4fe02d7d0d425aa7bfb393d6bfc655 | the kind of principles I think America needs,” he said. A poll of Pennsylvania voters, released Feb. 25 by the
Institute for Public Opinion at Muhlenberg College, found that
Obama would beat former Pennsylvania Senator Santorum by 49
percent to 41 percent and would win against Romney by 48 percent
to 37 percent. The poll, which was conducted in a telephone survey of 625
registered voters between Feb. 15 and 21 of this year, has a
margin of error of plus or minus 4 percentage points. As Romney, Santorum, and other candidates struggle to build
support among Republican voters, political analysts have begun
asking whether it’s too late for someone else to get into the
race. Indiana Governor Mitch Daniels , rumored as a possible
contender, said on “Fox News Sunday” that he won’t run. “I crossed that decision bridge a long time ago,” he
said. “Running for president is something I never thought about
doing, and nothing’s changed my mind.” To contact the reporters on this story:
Clea Benson in Washington at
Cbenson20@bloomerg.net
Sara Forden in Washington at
sforden@bloomberg.net To contact the editor responsible for this story:
Jeanne Cummings at
jcummings21@bloomberg.net | 2012 | romney-predicts-victory-in-michigan-as-voter-polls-show-gains-on-santoru |
Cheniere Energy Partners, Dendreon: U.S. Equity Movers | By Lu Wang | 2012-02-27T15:31:55Z | http://www.bloomberg.com/news/2012-02-26/darling-hitachi-territorial-bancorp-u-s-equity-preview.html | 2 | 26 | 66e24e735396449395259d33215d85a8 | Shares of the following companies
are having unusual moves in U.S. trading. Stock symbols are in
parentheses and prices are as of 10:10 a.m. in New York . Cheniere Energy Partners LP (CQP) rose 4.9 percent to
$21.92 after reaching $22.22 earlier, the highest intraday price
since March 3. The Houston-based company said Blackstone Group
LP agreed to invest $2 billion toward construction of a $5
billion natural-gas export terminal. Cheniere will use the
proceeds to fund the Sabine Pass liquefaction project and the
purchase of the Creole Trail pipeline from Cheniere Energy Inc. (LNG)
, the company said in a statement. Cheniere Energy Inc.
jumped 11 percent to $15.64. Dendreon Corp. (DNDN) slumped 18 percent to $12.15 after
plunging 21 percent earlier, the most intraday since Nov. 3. The
maker of the prostate-cancer drug Provenge said its January
orders were weaker than in previous quarters. Lowe’s Cos. (LOW) gained 2.9 percent to $27.94 and
climbed 3.3 percent earlier, the most intraday since Jan. 4. The
second-largest U.S. home-improvement chain reported fourth-
quarter earnings of 29 cents a share, excluding some items,
beating the average analyst estimate of 23 cents. Medco Health Solutions Inc. (MHS) rose 5.9 percent to
$67.93 after reaching $68.16 earlier, a record intraday price.
Express Scripts Inc.’s (ESRX) acquisition of the pharmacy-
benefits manager is likely to close by the end of first half
without “material” issues from the Federal Trade Commission,
Jefferies Group Inc. said in a note. Express Scripts gained 4.3
percent to $54.64. Micron Technology Inc. (MU) rallied 6.2 percent, the
most in the Standard & Poor’s 500 Index, to $8.44. Rival Elpida
Memory Inc., the last Japanese maker of computer-memory chips,
filed for the nation’s biggest bankruptcy in two years after
semiconductor prices plunged and it failed to win a second
government bailout. To contact the reporter on this story:
Lu Wang in New York at
lwang8@bloomberg.net To contact the editor responsible for this story:
Nick Baker at
nbaker7@bloomberg.net | 2012 | darling-hitachi-territorial-bancorp-u-s-equity-preview |
Arizona Governor Brewer Backs Romney as Republican Presidential Candidate | By Sara Forden and Amanda J. Crawford | 2012-02-26T18:19:25Z | http://www.bloomberg.com/news/2012-02-26/arizona-governor-brewer-backs-romney-as-republican-presidential-candidate.html
Arizona Governor Jan Brewer endorsed
Mitt Romney for the Republican presidential nomination, citing
his “pro-business background and political history.” “I think he’s the man who is going to carry the day and
I’m going to work as hard as I know how to see that he wins,”
Brewer said on NBC’s “Meet the Press” program today. Romney
“would serve America best of all the candidates,” she said. Arizona holds its primary Feb. 28, the same day as
Michigan . Arizona has the fourth-highest Mormon population in
the U.S., after Utah, California and Idaho, according to a
Church of Jesus Christ of Latter-Day Saints website. Romney is a
member of the church. Brewer, a 67-year-old Republican, has drawn attention for
her disputes with President Barack Obama’s administration over
immigration policy and health care. She took office in 2009
after Obama’s appointment of Democrat and former Arizona
governor Janet Napolitano as Homeland Security secretary. Brewer sparked a national outcry after she signed
legislation in 2010 requiring police officers to check
immigration status and immigrants to carry identification
documents, a move that led to boycotts and a court challenge by
the Obama administration. The Supreme Court is scheduled to hear
arguments on the case in April. Immigration Policy Romney, 64, pledged to stop the federal government’s
lawsuit blocking that 2010 law “on day one” if he is elected.
During a Feb. 22 debate in Mesa, Arizona, he also praised
another state law that requires employers to check immigration
status as “a model.” Brewer has used her defense of the law to challenge Obama’s
border policies. “The bottom line is that we do need our borders secure,”
Brewer said on NBC. “ Mexico is in terrible unrest | 2 | 26 | 4d7c9a1f80c26e33f41809b49f89890ee8ddf68e | state of Mexico being controlled by the drug cartels and all of
that crime is coming across our boarder, and Arizona is the
gateway.” The governor’s public-approval ratings in Arizona increased
after she criticized Obama’s 2010 health-care overhaul and
signed the immigration law in 2010. Brewer is also known for cutting Medicaid funding for organ
transplants and for signing legislation allowing any citizen
over 21 to carry a concealed firearm without a permit. She
backed a 1-cent sales-tax increase, approved by 64 percent of
Arizonans in May 2010, to help ease a $3 billion deficit. To contact the reporter on this story:
Sara Forden in Washington at
sforden@bloomberg.net
Amanda J. Crawford in Phoenix at
acrawford24@bloomberg.net To contact the editor responsible for this story:
Jeanne Cummings at
jcummings21@bloomberg.net | 2012 | arizona-governor-brewer-backs-romney-as-republican-presidential-candidate |
Ryan Zimmerman Signs Six-Year Contract Extension With Nationals | By Dex McLuskey | 2012-02-26T21:37:47Z | http://www.bloomberg.com/news/2012-02-26/ryan-zimmerman-signs-six-year-contract-extension-with-nationals.html | 2 | 26 | 4dd42290af8feed0c795a3d97367110a09cd4ab7 | Ryan Zimmerman signed a six-year
contract extension with a no-trade clause that will keep the
All-Star third baseman with the Washington Nationals at least
until 2019. The Nationals didn’t disclose financial terms of the deal,
which MLB.com reported is worth $100 million with a club option
for the 2020 season for $24 million. Zimmerman was due $26
million from the remainder of a five-year, $45 million accord he
signed in April 2009 that ran through 2013. “It’s nice that it’s done,” Zimmerman, 27, said at a news
conference at the team’s spring training camp in Viera, Florida.
“It’s where I want to be. It’s where I’ve always wanted to
be.” Zimmerman was Washington’s first draft pick after it moved
from Montreal in 2005. He’s a career .288 hitter with 214
doubles, 128 home runs and 498 runs batted in over 845 Major
League Baseball games and is the Nationals’ all-time leader in
games played, runs, hits, doubles, home runs and RBI. A National League All-Star in 2009, Zimmerman was limited
by injuries to 395 at-bats in 101 games last season, when he hit
.289 with 12 homers, 21 doubles and 49 RBIs. “Ryan Zimmerman is an exceptional talent and individual,”
Nationals General Manager Mike Rizzo said in a statement on the
team’s website. “He has been the face of the Washington
Nationals since baseball was returned to Washington. We’re
absolutely thrilled that Ryan will continue to help us build our
team in a winning direction.” Washington was third in the NL East in 2011, the
franchise’s best finish in the division standings since it
relocated from Montreal. Zimmerman is one of six players signed through at least
2019, MLB.com said. The others are Albert Pujols of the Los
Angeles Angels, Cecil Fielder of the Detroit Tigers , Troy Tulowitzki of the Colorado Rockies , Ryan Braun of the Milwaukee
Brewers and Matt Kemp of the Los Angeles Dodgers . To contact the reporter on this story:
Dex McLuskey in Dallas at
dmcluskey@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at msillup@bloomberg.net . | 2012 | ryan-zimmerman-signs-six-year-contract-extension-with-nationals |
BP Ignored Well Test Warning, Transocean Says on Eve of Trial | By Jef Feeley and Laurel Brubaker Calkins | 2012-02-26T04:11:54Z | http://www.bloomberg.com/news/2012-02-26/bp-ignored-well-test-warning-before-blast-transocean-says-on-eve-of-trial.html | 2 | 26 | 6e5c5f0082c14c9a8b44f4c37c488c6a | BP Plc (BP) officials overseeing the
Macondo well that spewed millions of gallons of oil into the
Gulf of Mexico ignored questions about whether safety tests done
hours before a fatal blast on the drilling rig were flawed,
lawyers for Transocean Ltd. (RIG) said in a court filing. Donald Vidrine , the senior BP manager on the Deepwater
Horizon rig on April 20, 2010, talked with an engineer about
unsatisfactory well tests less than an hour before an explosion
killed 11 workers on the rig and sent oil pouring into the
waters off Louisiana , Transocean’s attorneys said in a filing
tied to a trial set for tomorrow with billions of dollars at
stake. Transocean owned the rig and was drilling in a well owned
by BP and other partners. While Mark Hafle , a Houston-based BP drilling engineer,
warned Vidrine in a phone call that stability tests on the well
might be flawed, “neither man stopped work” at the facility,
Transocean officials said in the Feb. 24 filing. The BP officials
allowed crews to continue displacing drilling fluid in the well
with seawater, company lawyers said in the filing. Once the fluid
was removed, the lighter seawater couldn’t stop natural gas from
leaking into the well, leading to the explosion, the filing said. The filing came three days before BP, Transocean, the U.S.
government and plaintiffs suing over the oil spill are scheduled
to begin a trial in New Orleans to apportion blame for the
disaster and determine exposure to punitive damages. $26 Billion U.S. District Judge Carl Barbier , who will hear the case
without a jury, is to rule whether BP should get help from the
other firms involved in paying the $26 billion in costs
associated with the disaster and its resulting offshore spill,
the largest in U.S. history. Scott Dean , a spokesman for London-based BP, declined to
comment yesterday on the Transocean filing. Mitchell Lansden, a
lawyer for Hafle, didn’t immediately return a call seeking
comment late yesterday. Vidrine has refused to testify about his actions on the
rig, citing medical-related problems. His lawyer, Robert N.
Habans Jr., didn’t immediately return phone and e-mail messages
yesterday seeking comment on the filing. The Macondo well blowout sent almost 5 million barrels of
oil into the gulf over more than 80 days, according to a U.S.
government report issued in September. The accident spawned hundreds of lawsuits against BP and
its partners, including Vernier, Switzerland-based Transocean,
and Houston-based Halliburton Co. (HAL) , which provided cementing
services for the well. The lawsuits include pollution claims by federal and state
governments and consolidated cases brought by thousands of
commercial fishermen, seafood processors, property owners and
tourism-related businesses. ‘Key Source’ Transocean officials have urged Barbier to force Vidrine to
testify, calling him in court filings a “key source of
information regarding critical events and operations that
occurred immediately prior to the blowout.” Barbier ruled this month that Vidrine must be examined by
an independent doctor to determine whether he should be required
to give a deposition in the case. Hafle also has refused to testify after invoking his
constitutional protections against self-incrimination,
Transocean’s lawyers said in court filings. ‘Adverse Inferences’ In the filing laying out Vidrine’s call to Hafle the night
of the explosion, Transocean’s lawyers asked Barbier to allow
them to draw “adverse inferences” against BP during the trial
over Hafle’s refusal to testify. “The fact that BP’s on-shore drilling engineer and well
site leader disregarded then negative pressure test results is
critical to establishing that key BP personnel failed to stop
work despite having knowledge of the unsatisfactory test
results,” Transocean’s lawyers said in the filing. Barbier initially set the first phase of tomorrow’s trial
as a limitation-of-liability action under U.S. maritime law. The
three-month proceeding was to consider Transocean’s effort to
cap its financial exposure over the spill under an 1851 law
designed to protect ship owners. The judge later expanded the trial to include claims of
fault for the disaster against all defendants, as well as
pollution claims brought by federal and state officials. The case is In re Oil Spill by the Oil Rig Deepwater
Horizon in the Gulf of Mexico on April 20, 2010, MDL-2179, U.S.
District Court, Eastern District of Louisiana ( New Orleans ). To contact the reporters on this story:
Jef Feeley in New Orleans at
jfeeley@bloomberg.net ;
Laurel Brubaker Calkins in Houston at
laurel@calkins.us.com . To contact the editor responsible for this story:
Michael Hytha at mhytha@bloomberg.net | 2012 | bp-ignored-well-test-warning-before-blast-transocean-says-on-eve-of-tria |
Gold for Immediate Delivery Rebounds, Advancing 0.2% to $1,775.03 an Ounce | By Phoebe Sedgman | 2012-02-26T23:25:12Z | http://www.bloomberg.com/news/2012-02-26/gold-for-immediate-delivery-rebounds-advancing-0-2-to-1-775-03-an-ounce.html | 2 | 26 | f5316fc81a144628eaaff51e62d5a6f9a316c07a | Spot gold advanced 0.2 percent to
$1,775.03 an ounce at 10:12 a.m. Melbourne time, while bullion
for April delivery in New York was little changed at $1,776.30
an ounce. Silver for immediate delivery rose 0.3 percent to $35.4875
an ounce, while the metal for May delivery gained 0.4 percent to
$35.57 an ounce. To contact the reporter on this story:
Phoebe Sedgman in Melbourne at
psedgman2@bloomberg.net To contact the editor responsible for this story:
Ovais Subhani at
osubhani@bloomberg.net | 2012 | gold-for-immediate-delivery-rebounds-advancing-0-2-to-1-775-03-an-ounce |
Virgin Galactic Looks at Partnerships With Abu Dhabi Companies | By Tamara Walid | 2012-02-26T10:01:02Z | http://www.bloomberg.com/news/2012-02-26/virgin-galactic-looks-at-partnerships-with-abu-dhabi-companies.html | 2 | 26 | 8db2acb96ff2d5a6f1fb05d073239878c2603aa5 | Virgin Galactic, billionaire Richard Branson ’s venture that plans to launch commercial space flights,
is interested in forming partnerships in Abu Dhabi as the
emirate builds itself into a global aerospace hub. Virgin Galactic, 37.8 percent-owned by the Abu Dhabi
government’s Aabar Investments (AABAR) wealth fund, wants
“collaborations in operations or future technology or even
education” with companies in the emirate, Chief Executive
Officer George Whitesides said in a phone interview. Project costs to date amount to $200 million, while about
500 people have signed up for space flights at $200,000 a
ticket, giving the company potential revenue of $100 million,
Whitesides said in the interview from Virgin Galactic’s
headquarters in Las Cruces , New Mexico, adding that the majority
of buyers paid the full amount. Abu Dhabi , the capital of the United Arab Emirates and
holder of 7 percent of the world’s proven oil reserves, plans to
spend $500 billion on industry, tourism and culture through 2030
to reduce reliance on petroleum. Among the projects is a
business jet that state-owned Mubadala Aerospace, a maker of
aircraft parts, plans to build before the end of the decade. The emirate is “going about it in a really smart way” to
develop an aerospace industry , by manufacturing composite
materials and working with partners such as Lockheed-Martin
Corp. (LMT) , Whitesides said. Virgin Galactic may make “a number of announcements”
about joint projects during the Global Aerospace Summit in Abu
Dhabi in April, Whitesides said, declining to specify potential
partners. The conference will also provide a chance for
Whitesides to sign up more space-flight passengers from the
Persian Gulf , he said. Customers from the region currently
number almost 10, he said in the interview Feb. 24. Aabar’s investment in Virgin Galactic stands at $380
million, Whitesides said. The rocket maker’s budget shows
there’s no need for further funding until commercial operations
begin in the second half of 2013, and the company isn’t looking
to sell additional stakes, Whitesides said. To contact the reporter on this story:
Tamara Walid in Dubai via
twalid@bloomberg.net To contact the editor responsible for this story:
Chad Thomas at
cthomas16@bloomberg.net | 2012 | virgin-galactic-looks-at-partnerships-with-abu-dhabi-companies |
India Road-Building Hits Record as Builders Pay to Work: Freight | By Karthikeyan Sundaram | 2012-02-27T10:39:10Z | http://www.bloomberg.com/news/2012-02-26/india-highway-building-hits-record-pace-as-contactors-pay-to-work-freight.html | 2 | 26 | 59270cb78deb455e91aa9a6777af41d6 | India is awarding highway-
construction contracts at a record pace, and saving taxpayers
money, as builders stop asking for subsidies and instead offer
fees to lay and operate new toll roads. Competition among builders such as GMR Infrastructure Ltd. (GMRI) ,
Larsen & Toubro Ltd. and IRB Infrastructure Developers Ltd. (IRB) has
helped the National Highways Authority of India win payments, or
premiums, for at least 23 of the 35 projects it has offered
since April 1, said G. Suresh, its chief general manager for
finance. He didn’t elaborate. The body will award tenders for
7,300 kilometer-lanes of highways this fiscal year, worth about
570 billion rupees ($12 billion), and 9,000 kilometers next
year. “Many of the projects where we thought we’ll have to pay
subsidies, we actually got premiums,” said B.K. Chaturvedi, who
headed a government committee on highway development and a
member of the state Planning Commission. “It’s a good thing
there’s competition.” Construction companies have stepped up bids for highways as
growing vehicle ownership is spurring traffic and because of a
slowdown in other sectors such as building power plants . The
work will improve roads (LT) ranked worse than Botswana’s by the
World Economic Forum and ease congestion that contributes to
about 440 billion rupees of harvested foods going to waste each
year, according to government estimates. “India’s road network is barely adequate to maintain its
current growth trajectory,” said Shailesh Kanani, an analyst
with Angel Broking Ltd. in Mumbai. “Positively, the political
will to acknowledge and address this issue is now visible.” $1 Trillion Spending India’s investments in roads could rise to $145 billion in
the five years to 2017 from about $69.8 billion in the previous
five years, according to a PricewaterhouseCoopers LLP. study.
The country plans to spend a total of $1 trillion on roads,
railways, airports and other infrastructure in the period. The national highway system, a predominately two-lane
network linking major cities, carries 65 percent of India’s
freight and 80 percent of passenger traffic. In about six years
through October 2011, the highway agency oversaw 5,182
kilometers of construction, including new highways and
improvements. Prime Minister Manmohan Singh in August 2009 set a goal of
building 20 kilometers of highways a day. The nation has added
823 kilometers, or about 2 kilometers a day, since then as
construction slowed, Tushar A. Chaudhary, junior road transport
and highways minister, told lawmakers in parliament Dec. 12. Tenders Online Construction is now speeding up, partly because the agency
has made it easier for builders to compete for projects by
accepting tenders online and by creating a list of prequalified
bidders. Winning bidders get to collect tolls for as long as 30
years before transferring the highways to the state, Suresh
said. Toll fees are decided by the National Highways Authority. The highways have become more lucrative for builders and
the government as the rising number of cars and trucks boosts
traffic and tolls. India’s car sales in the year ended in March
jumped 30 percent, the biggest gain in at least nine years,
according to Society of Indian Automobile Manufacturers . Sales
may triple to more than six million by 2018, Rothschild forecast
in a December report. “Traffic risk is something to be taken on by the
developer,” said Virendra Mhaiskar, chairman of IRB
Infrastructure, which has constructed roads including the
Mumbai-Pune highway. If the builder is confident of generating
enough tolls to cover costs and make a profit, it can offer the
extra anticipated funds to the government as premiums to secure
the contract, he said. Overestimating Traffic Builders run the risk of overestimating future traffic and
tolls, which could cause them to pledge unprofitable levels of
fees, said Parvesh Minocha, managing director, transport
division at Feedback Infrastructure Services Pvt. , which advises
clients on construction projects. “The premium bids are increasingly becoming a cause for
worry,” he said. “The worry will start manifesting a couple of
years down the line when you have to give the NHAI what you
promised and also put in money to build the roads.” L&T, the nation’s biggest engineering company, decides to
make premium bids for projects based on factors including
traffic expectations, competition from other roads, the type of
traffic the highway will attract and the ease of construction,
said S.N. Subrahmanyan , director and senior executive vice
president of its construction division. He didn’t say how much
premiums the company has so far paid. The builder fell 3.5 percent to 1,301.9 rupees at close of
Mumbai trading. It’s fallen 14 percent in the past year. IRB
Infrastructure declined 2.9 percent and GMR Infrastructure
dropped 5.3 percent today. Reliance, Adani Builders may also be chasing road projects to help
replenish orderbooks amid a slowdown in power-plant orders, said
Manish Agarwal, an executive director at the Indian unit of PwC.
Reliance Power Ltd. (RPWR) , Adani Power Ltd. and other electricity
generators have delayed building $36 billion of power stations
because of concerns about coal supply. L&T, based in Mumbai, has orders to build 100 billion
rupees of roads, Subrahmanyan said. The builder boosted the
number of road projects to 7,171 lane-kilometers in the first
nine months of this fiscal year from 5,701 lane-kilometers a
year ago, according to company presentations on its website. The
number of power projects remained unchanged at 5 during this
period. Power Plants That means power plants now account for 29 percent of L&T’s
orderbook, compared with 37 percent a year ago. Roads and other
building projects’ share has jumped to 40 percent from 32
percent. “For investors, a company’s valuation seems to be driven
by its orderbook,” said Agarwal. “If a company wins a bid,
they see it as fantastic.” Welspun Infratech Ltd., a unit of JPMorgan Chase & Co.-
backed Welspun Corp. (WLCO) , has won road projects worth 10 billion
rupees since 1999, including a 185-kilometer stretch in the
central Indian state of Madhya Pradesh , without offering
premiums, said Assistant Vice President Rajeev Kumar. Still, the
company is willing to offer fees. “We aren’t averse to offering a premium to win a deal,”
he said. “If the deal is good, why not?” To contact the reporter on this story:
Karthikeyan Sundaram in New Delhi at
kmeenakshisu@bloomberg.net To contact the editor responsible for this story:
Neil Denslow at
ndenslow@bloomberg.net | 2012 | india-highway-building-hits-record-pace-as-contactors-pay-to-work-freig |
Manufacturing, Spending Probably Gained: U.S. Economy Preview | By Bob Willis | 2012-02-26T05:01:04Z | http://www.bloomberg.com/news/2012-02-26/manufacturing-in-u-s-probably-increased-at-faster-pace-to-lead-expansion.html | 2 | 26 | d51769ee261848f3ad25d8f903c08de2 | Manufacturing probably accelerated
for a fourth straight month in February, consumer confidence
improved and Americans picked up the pace of spending a month
earlier, economists said reports this week will show. The Institute for Supply Management ’s factory index rose to
an eight-month high of 54.5 from 54.1 in January, according to
the median estimate of 62 economists surveyed by Bloomberg News.
Readings above 50 signal growth. Consumer purchases in January
rose 0.4 percent, the most in four months, another report may
show. Manufacturers remain at the forefront of the more than two-
year-old expansion, aided by corporate investment in equipment,
inventory rebuilding and a pickup in the auto industry . Risks to
the industry that accounts for about 12 percent of the economy
include higher fuel costs and a slowdown in Europe linked to its
debt crisis. “The manufacturing outlook has been relatively bright,”
Jeremy Lawson, a senior U.S. economist at BNP Paribas in New
York , said before the report. “Domestic demand seems to be
contributing to the strength in manufacturing. A wild card is
whether the rise in gas prices will start to affect spending.” The price of a gallon of regular unleaded gasoline climbed
to $3.65 as of Feb. 23 from a 10-month low of $3.21 on Dec. 20,
according to AAA, the nation’s largest automobile association. Monetary Policy Federal Reserve Chairman Ben S. Bernanke will give his
semiannual monetary policy report to Congress this week and he
may repeat that the central bank is likely to keep low interest
rates in place through late 2014 to ensure the economy keeps
growing. He testifies before House lawmakers on Feb. 29 and the
following day to the Senate Banking Committee. The Tempe, Arizona-based ISM is due to report its
manufacturing index on March 1. Estimates ranged from 53.7 to
55.8. Personal spending probably rose in January after little
change in December and 0.1 percent gains in each of the previous
two months, according to the survey median before the Commerce
Department report the same day. Incomes (PITLCHNG) probably climbed 0.5
percent for a second month, the biggest back-to-back gains since
February-March 2011. Faster job growth is boosting the outlook for spending and
production. Payrolls grew by 243,000 workers in January, and the
jobless rate fell to 8.3 percent, the lowest since February
2009, the Labor Department said Feb. 3. Job and income gains helped boost confidence. The
Conference Board’s 10 a.m. release on Feb. 28 may show its index
climbed to 63 this month from 61.1. Factory Jobs Factory payrolls jumped by 50,000, the most in a year, and
the industry’s workers put in the longest workweek on average
since January 1998, the Labor Department monthly data showed. Manufacturing, which sparked the early stages of the
recovery as growing overseas economies propelled exports, has
recovered after a lull brought on by Japan ’s March 2011
earthquake. Another report from the Commerce Department on Feb. 28 may
show orders for durable goods fell 1 percent in January after a
3 percent gain, which may reflect a decrease in demand for
Boeing Co. aircraft. Orders excluding transportation equipment
probably were unchanged after a 2.2 percent gain, economists
forecast. Business investment remains a bright spot. Corporate
spending on equipment and software rose at a 5.2 percent annual
rate from October through December. While slower than the prior
period’s 16 percent gain, a surge in orders in December
indicates capital spending will strengthen in the current
quarter. Caterpillar Production “For many products demand has been above our ability to
produce,” Mike DeWalt , director of investor relations at
Caterpillar Inc. (CAT) , said on a Jan. 26 conference call with
analysts. “We have invested in Caterpillar factories in the
United States and around the world to increase production.” Even with planned increases in capital expenditures this
year, “we’re still very tight on many products and are
currently quoting extended delivery times for them,” he said. Machinery and equipment makers have outperformed the
broader stock market. The Standard & Poor’s Supercomposite
Machinery Index (S15MACH) has gained 20 percent so far this year, compared
with an 8.6 percent increase for the S&P 500 Index. (SPX) Vehicle demand should also drive production. Cars and light
trucks sold at a 14.1 million annual rate last month, according
to industry data. Excluding a surge in August 2009 tied to the
government’s “cash-for-clunkers” program, it was the strongest
month since May 2008. Housing remains the economy’s weakest link. The S&P/Case-
Shiller (SPCS20) index of home prices in 20 cities may have fallen in
December by 3.6 percent from a year earlier after a 3.7 percent
drop in the 12 months through November, economists forecast the
Feb. 28 data to show.
To contact the reporters on this story:
Robert Willis in Washington at
bwillis@bloomberg.net To contact the editor responsible for this story:
Christopher Wellisz in Washington at
cwellisz@bloomberg.net | 2012 | anufacturing-in-u-s-probably-increased-at-faster-pace-to-lead-expansion |
Frontier Stocks Lose in Best Rally Since ’91 | By Weiyi Lim, Shikhar Balwani and Michael Patterson | 2012-02-27T20:56:49Z | http://www.bloomberg.com/news/2012-02-26/frontier-stocks-lose-in-best-rally-since-1991-as-smallest-economies-falter.html | 2 | 26 | 27d16102b15a409997324133e557288e | The best start to a year for stocks
in two decades is leaving the smallest markets behind, a sign of
reduced investor confidence in the least-developed economies. All eight of the world’s worst-performing equity indexes
this year are in frontier countries, where the average stock-
market value of $30 billion is about 95 percent less than in
emerging nations. While the MSCI All-Country World Index (MXWD) jumped
11 percent, gauges in Bangladesh (DHAKA) and Sri Lanka sank at least 9
percent as interest rates increased. Nigeria ’s stock index fell
1.8 percent after union strikes and attacks by Islamic
militants. Frontier-nation stocks trade at the lowest valuations
since at least 2008 versus emerging-market shares. Falling valuations reflect concern that growth in the
smallest economies, which expanded about 20 percent slower than
larger developing nations on average during the past three
years, won’t accelerate in 2012. Bank Julius Baer & Co. says the
losses create buying opportunities for long-term investors.
Ashmore EMM LLC has been cutting frontier-market holdings and
Oversea-Chinese Banking Corp. (OCBC) is avoiding the stocks . “On a purely tactical basis, we have actually reduced
exposure in frontier markets,” said Antoine van Agtmael, who
coined the term “emerging markets” in 1981 and now oversees
about $7.1 billion as chairman of Ashmore EMM in Arlington,
Virginia. “The larger, more liquid markets offered relatively
more compelling investment opportunities.” Emerging-Market Rally The 25-country MSCI Frontier Markets Index (MXFM) increased 2.8
percent this year, trailing the emerging-market measure by about
13 percentage points. Nigeria’s Union Bank of Nigeria ,
Bangladesh’s Dhaka Electric Supply Co. (DESC) and Sri Lanka’s Lanka
Orix Finance Co. (LOFC) declined more than 29 percent, countering gains
in Vietnamese shares including Bao Viet Holdings and Vietnam
Dairy Products Joint-Stock Co. (VNM) MSCI Inc. (MSCI) ’s gauge of shares in 21 emerging countries, which
have an average stock-market capitalization of $603 billion,
surged 15 percent this year as Brazil reduced its benchmark
interest rate to the lowest level in 18 months and China cut
banks’ reserve requirements. A new three-year lending program
from the European Central Bank and data showing a rebound in the
U.S. job market eased concern that developing-nation exports
will slow. The price-to-reported earnings ratio for the frontier
index , comprised of companies with an average market value of
$2.6 billion, dropped to 10.7 from 16 a year ago and trades at a
10 percent discount to the emerging-market measure, made up of
companies with a mean market capitalization of $12 billion. ‘Macro Risk’ “I would go for quality as opposed to underperformance,”
said Vasu Menon, a vice-president of wealth management at
Oversea-Chinese Banking, the second-largest financial services
group in Southeast Asia . “It’s a year you don’t want to add on
another layer of risk on top of macro risk.” Frontier markets have smaller economies and worse rankings
on gauges of business climate and corruption than emerging
markets. They also have lower trading volumes, which make it
more difficult for investors to sell shares. The average annual gross domestic product for nations in
the frontier index is $118 billion, compared with $994 billion
for the emerging-market gauge, according to data compiled by
Bloomberg and the International Monetary Fund . Frontier
countries have an average ranking of 74 in the World Bank’s ease
of doing business index, compared with 70 for emerging markets.
Their mean ranking of 82 in Transparency International’s
corruption perceptions index is worse than the 75 average for
emerging countries. Liquidity Trap Less than $15 million of shares changed hands each day on
Sri Lanka (CSEALL) ’s Colombo Stock Exchange during the past month,
compared with $12 billion on the Shanghai Stock Exchange in
China, the biggest emerging market, according to data compiled
by Bloomberg. “Frontier markets are riskier on the liquidity front, so
you may get trapped there when times change,” Chong Yoon Chou,
the Singapore-based investment director at Aberdeen Asset
Management Asia Ltd., which has $75 billion of assets in Asia,
said in a phone interview on Feb. 13. The rally in emerging-market stocks in October 2008
foreshadowed the end of the last bear market in frontier
countries. The MSCI frontier index surged more than 50 percent
in three months after hitting a bottom in March 2009. The
gauge’s ratio of price to trailing earnings was 10 when the
rally began, compared with 10.7 on Feb. 24, data compiled by
Bloomberg show. Vietnam Gains The short-term challenges facing frontier countries haven’t
reduced their long-term growth potential, said Mark Matthews,
the Singapore-based head of research for Asia at Julius Baer.
While their average expansion may slow to 4.3 percent this year
from 4.6 percent in 2011, growth will probably accelerate to 4.8
percent by 2015, forecasts by the Washington-based IMF show. Frontier countries including Vietnam will lure
manufacturers from China as labor costs in the world’s second-
largest economy rise, according to Matthews. About 60 percent of
Vietnam’s 87 million people are below the age of 35 and minimum
salaries were equivalent to $85 a month in 2009, compared with
$173 in China, according to the United Nations’ International
Labour Organization . Frontier markets “are a great structural story,” said
Julius Baer’s Matthews, who helps oversee about $180 billion.
“If you are taking a three-year view, you won’t worry if it
falls in six months.” Vietnam’s benchmark VN Index gained 1.2 percent today. It
advanced 22 percent this year, rebounding from a 27 percent
retreat in 2011, as inflation slowed for a sixth straight month
in February to 16.44 percent. Dominic Scriven, the chief
executive officer of Ho Chi Minh City-based money manager Dragon
Capital Group Ltd., said by phone on Feb. 17 the rate may drop
to between 8 percent and 9 percent this year, giving the central
bank room to cut borrowing costs. Mobius Is Bullish Bao Viet Holdings (BVH) , a Hanoi-based insurer, has rallied 43
percent in 2012. Ho Chi Minh City-based Vietnam Dairy Products,
known as Vinamilk, has increased 5.8 percent and trades for 11.8
times reported earnings, compared with an average 17.5 times
since Bloomberg began compiling the data in 2006. “Taking a long-term view is the best way to cope with
volatility,” said Mark Mobius , who oversees more than $40
billion in developing nations as executive chairman of Templeton
Emerging Markets Group. “As these countries move ahead, their
governments are taking the steps necessary to help support
sustained, steady growth.” Nigeria Inflation The best investment opportunities so far this year are in
emerging markets, Ashmore EMM’s van Agtmael said. The MSCI
emerging-market gauge is valued at 12 times reported profit,
lower than the 13.7 average during the past decade, data
compiled by Bloomberg show. In China, where the economy expanded
at an 8.9 percent rate in the fourth quarter, stocks in the
Shanghai Composite Index (SHCOMP) trade at a 53 percent discount to their
10-year average price-earnings ratios. Van Agtmael said he cut holdings in Nigeria, where the
benchmark equity index dropped 16 percent last year. Lagos-based
Union Bank of Nigeria sank 33 percent since the end of December,
and was the second-biggest drag on the Nigerian Stock Exchange
All Share Index after Dangote Cement Plc. (DANGCEM) A week-long general strike last month mobilized millions
against President Goodluck Jonathan’s decision to remove fuel
subsidies, while attacks by Islamist militants killed as many as
256 people in the northern city of Kano. Sri Lanka, Bangladesh Nigeria’s central bank predicted inflation will accelerate
to about 14 percent by mid-year from 12.6 percent in January,
even after policy makers lifted the benchmark interest rate 6
percentage points since September 2010 to 12 percent. Inflation in Bangladesh has exceeded 10 percent every month
since March as food and electricity prices climbed and the
nation’s currency, the taka, depreciated 13 percent against the
dollar during the past year. The central bank raised interest
rates on Jan. 5 for the second time in four months. Concerns about political stability have increased after
Bangladesh’s army said on Jan. 19 that it foiled an attempt to
oust Prime Minister Sheikh Hasina Wajed’s government. The Dhaka
Stock Exchange General Index tumbled 16 percent this year,
extending last year’s 37 percent drop. Dhaka Electric, which
distributes electricity in Bangladesh, lost 30 percent in 2012. In Sri Lanka , the government said it raised petroleum
prices this month and will add a fuel surcharge on electricity
bills. Higher fuel costs and the rupee’s tumble to the lowest
level since April 2009 have stoked inflation and prompted the
central bank to raise interest rates for the first time since
2007 this month. Volatile Markets The Colombo All-Share Index, which surged more than 200
percent in the two years after the nation’s 26-year civil war
ended in May 2009, declined 9.8 percent this year. Lanka Orix
Finance, a Colombo, Sri Lanka-based consumer-finance company,
tumbled 32 percent. For stocks in Sri Lanka and Bangladesh, “I wouldn’t buy
them immediately, I will probably wait until the end of the year
once the tightening is complete,” said Arjuna Mahendran , the
Singapore-based head of Asia investment strategy at HSBC Private
Bank , which oversees about $500 billion. “Because they are
small, they tend to be really volatile, a little bit of money
can pump the market up very fast, and vice versa.” To contact the reporter on this story:
Weiyi Lim in Singapore at
wlim26@bloomberg.net ;
Shikhar Balwani in Mumbai at
sbalwani@bloomberg.net ;
Michael Patterson in London at
mpatterson10@bloomberg.net To contact the editor responsible for this story:
Darren Boey at
dboey@bloomberg.net | 2012 | frontier-stocks-lose-in-best-rally-since-1991-as-smallest-economies-falter |
BT May Offer Online Music Streaming, Download, Sunday Times Says | By Catherine Airlie | 2012-02-26T08:38:50Z | http://www.bloomberg.com/news/2012-02-26/bt-may-offer-online-music-streaming-download-sunday-times-says.html | 2 | 26 | a895d3bc0869b9fcc22391895246a7c3b226392e | BT Group Plc, Britain’s largest
fixed-line phone company, may offer online music streaming and
downloads, to boost its broadband division, the Sunday Times
reported, citing unidentified industry sources. BT has “stepped up its efforts” this year to start the
service, according to the newspaper’s sources. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | bt-may-offer-online-music-streaming-download-sunday-times-says |
G-20 Rebuffs Europe Aid Calls With Bigger Firewall Needed | By Alan Crawford | 2012-02-27T03:06:18Z | http://www.bloomberg.com/news/2012-02-26/geithner-schaeuble-spar-over-sovereign-debt-crisis.html | 2 | 26 | bb8d9d1fb7a14f38b26999a8382a485c | Germany was left to dig deeper to
combat the euro-area debt crisis after the Group of 20 nations
told Europe to come up with more financial firepower before they
consider lending outside support. The decision by G-20 officials to rebuff European calls for
assistance in their crisis-fighting effort pending an increase
in its own financial backstop puts the onus on Germany, already
the biggest national contributor to bailouts, to overcome its
resistance to doing more. With a parliamentary vote on a second Greek aid package
looming in Berlin today, Chancellor Angela Merkel’s government
must now decide whether to back plans at a March 1-2 European
Union summit to combine rescue funds and produce a potential
firewall of 750 billion euros ($1 trillion). Europe “doesn’t really need any outside money,” Jim O’Neill, chairman of Goldman Sachs Asset Management, said in an
e-mail. “It needs their own policy makers, especially Germany,
to show leadership.” Germany went in to the Mexico meetings of finance ministers
and central bankers urging G-20 nations to find fresh money for
the International Monetary Fund that could be channeled to
defuse the euro-region crisis now in its third year. IMF chief
Christine Lagarde , who attended the talks, said she wants to
raise the Washington-based fund’s lending capacity by $500
billion to fend off “further shocks” to the global economy. ‘Essential’ Review The G-20 concluded that a European review of its financial
firewall in March is “essential” before any consideration can
be made to boost resources for the IMF, the G-20 said in its
closing statement issued in Mexico City yesterday. Progress will
be assessed in April, when officials gather in Washington for
the IMF’s spring meetings. “Until we see the color of their money, I don’t think you
are going to see any money from the rest of the world,” U.K.
Chancellor of the Exchequer George Osborne said in an interview
in Mexico City. The U.S. led calls for Europe to step up, with Treasury
Secretary Timothy F. Geithner saying in a Feb. 25 speech in
Mexico that the region needed to make their crisis-fighting
commitments “credible.” The same day, German Finance Minister
Wolfgang Schaeuble said a deal struck last week for Greece’s 130
billion-euro bailout showed “Europe has done its homework.” The exchange underscored G-20 divisions as Japan , Brazil,
Russia and the U.K. joined with the U.S. and Canada in prodding
the euro-area to boost its crisis defenses. The deliberations
left no time for discussion of a successor to World Bank chief
Robert Zoellick, who steps down on Jun 30. Greek-Aid Vote While the German government has yet to show its hand on a
plan to combine the 250 billion euros remaining in the region’s
temporary fund and the 500 billion-euro permanent rescue fund
that is due to come into force in July, Merkel has signaled she
is open to review the matter at the EU summit in Brussels. As with Germany’s stance on the crisis since it first came
to light in Greece in late 2009, Merkel must take into account
domestic considerations. Sixty-two percent of German voters said
they want lawmakers to reject aid for Greece in today’s vote, an
Emnid poll of 500 people for Bild am Sonntag newspaper showed
yesterday. Thirty-two percent said they backed the bailout. EU Economic and Monetary Commissioner Olli Rehn , asked in
Mexico if he expected a deal on the firewall at this week’s
summit, said he anticipated a result “in the course of March.”
Italy’s central banker, Ignazio Visco, echoed those sentiments. “The Germans have their own sequencing” and “want Greece
out of the way” before debating the firewall, Jacques Cailloux
of Royal Bank of Scotland Group Plc., said by phone. “Any hope
there could have been for an agreement on a higher firewall as
early as this week’s summit is fading.” ECB Action Even so, the G-20’s stance on additional funds is not as
big a focus for investors as Greece and the European Central
Bank ’s decision to offer banks unlimited liquidity for three
years, the second such offering in three months, Cailloux said. Pressure for a deal in Mexico eased after European bond
markets reacted positively to last week’s agreement to help
Greece avert the euro-area’s first sovereign default. Italy’s 10-year bonds rose for a seventh week, the longest
run of gains in the euro-era, while Spanish 10-year bonds had
their biggest weekly advance in a month. Europe’s Stoxx 600 (SXXP) index still slipped 0.4 percent last
week on concern that Greece won’t be able to implement the
austerity measures needed for the rescue, and as the European
Commission said the euro area’s economy will shrink this year.
Commerzbank AG, Germany’s second-biggest lender, tumbled 6.6
percent on Feb. 23 as it and two other banks, Royal Bank of
Scotland Group Plc and France’s Credit Agricole SA, booked
losses on their Greek government debt. Reassuring Investors “In order to reassure market investors that contagion is
under control, more firepower is needed,” Andrew Milligan , who
helps oversee about $262 billion as the Edinburgh-based head of
global strategy at Standard Life Investments Ltd., said in an e-
mail. “Pressure is certainly growing on Germany and others to
increase the firewall. I think eventually they will agree,
although it may take another crisis or a difficult period of
negotiation before that happens.” The G-20 statement said that growth expectations for 2012
are moderate and downside risks continue to be high along with
market volatility. With oil prices undergoing the longest rally
in two years amid tension with Iran and Syria, G-20 countries
said in their statement they “welcome the commitment by
producing countries to continue to ensure adequate supply.” No Complacency While the meeting recognized the “significant progress”
made this year in Europe and the U.S. in stemming risks, “this
is not the moment for complacency,” Mexico’s Central Bank
Governor Agustin Carstens told reporters. Euro-area governments have pledged about $200 billion in
new money to the IMF’s lending resources. Geithner said in
Mexico that he won’t go to Congress to seek a U.S. contribution
because “we don’t think that’s necessary or desirable.” Brazil ’s Finance Minister Guido Mantega said after meeting
with his counterparts from Russia, India, China and South Africa
that the BRICS group of major emerging markets will only add
more funding for Europe if the region’s leaders follow
“precisely to the letter” a 2010 agreement to give them a
bigger say in how the IMF is run. Canadian Finance Minister Jim Flaherty pointed the finger
at Germany for being absent at the helm, saying that it was time
for Europe’s dominant country to “take that leadership role
very seriously and come up with an overall euro-zone plan.” While the government in Berlin faced criticism, the
Frankfurt-based ECB was singled out for praise by both Geithner
and Lagarde, with the IMF chief saying the central bank’s
actions helped avert “derailment” of the global recovery. “Given some of the official narrative in the run-up to the
meeting, few expected it to yield much in terms of concrete
agreements,” Mohamed El-Erian, chief executive officer of
Pacific Investment Management Co., said in an e-mail. Still,
“it would be unwise for markets and policymakers to think that
ECB liquidity injections, while powerful, would durably
substitute for proper actions to improve growth, competitiveness
and debt solvency.” To contact the reporters on this story:
Alan Crawford in Mexico City at acrawaford6@bloomberg.net ; To contact the editor responsible for this story:
Joshua Goodman at jgoodman19@bloomberg.net . | 2012 | geithner-schaeuble-spar-over-sovereign-debt-crisis |
Australian Dollar Weakens Versus Yen on Concern Greece’s Crisis Unresolved | By Kristine Aquino | 2012-02-27T17:31:15Z | http://www.bloomberg.com/news/2012-02-26/australian-n-z-dollars-advance-before-ecb-refinancing-asian-stocks-open.html | 2 | 26 | c9e0fb8363634b8bb7e027fc24f6cdf4 | Australia ’s dollar slid from a
seven-month high versus the yen amid concern Greece will face
continued difficulties in resolving its debt crisis, damping
demand for higher-yielding assets. The Aussie rose against the dollar as pending home sales in
the U.S. rose more than forecast last month. The appeal of New
Zealand’s dollar, nicknamed the kiwi, was limited after the
nation unexpectedly posted a trade deficit last month. “The Greek situation is far from concluded,” said Derek Mumford, a director in Sydney at Rochford Capital, a currency-
risk management company. “The Aussie has been perhaps showing
signs of topping out.” Australia’s dollar lost 0.2 percent to 86.65 yen at 12:05
p.m. New York time. It earlier rose as much as 0.8 percent to
87.48 yen, the highest level since July 8. The Aussie rose 0.7
percent to $1.0771. New Zealand ’s currency dropped 0.4 percent to 67.60 yen
after earlier reaching 68.35 yen, the strongest level since Aug.
1. The kiwi rallied 0.6 percent to 84.09 U.S. cents. Germany ’s lower house of parliament approved a second euro-
region Greek bailout package worth 130 billion euros ($174
billion). German Chancellor Angela Merkel and euro-area leaders
now shift their focus on whether to bolster the region’s bailout
firewall as they prepare for a summit meeting in Brussels on
March 1-2. G-20 Meeting Finance ministers and central bankers of the Group of 20
nations meeting in Mexico City this weekend concluded that a
European review of the financial firewall in March is
“essential” before any consideration can be made to boost
resources for the International Monetary Fund . Progress will be
assessed in April, when officials gather in Washington for the
IMF’s spring meetings. Australia’s dollar has appreciated 2.2 percent this year,
according to Bloomberg Correlation-Weighted Indexes. Its New
Zealand counterpart has gained 5 percent, the best performance
among the 10 developed-nation currencies tracked by the gauge. The index of U.S. pending home resales climbed 2 percent
after a 1.9 percent decrease the prior month that was smaller
than previously estimated, the National Association of Realtors
said today in Washington. The median forecast of 44 economists
surveyed by Bloomberg News called for a 1 percent rise. The kiwi weakened after a report today showed New Zealand’s
imports exceeded exports by NZ$199 million ($166 million) in
January, from a revised NZ$306 million surplus in December. The
median estimate in a Bloomberg News survey was for a NZ$167
million surplus last month. “The trade figures were undoubtedly worse than market
expectations,” said Mike Jones , a foreign-exchange strategist
at Bank of New Zealand in Wellington. “The surprise in the
trade numbers looks to have come from some temporary one-offs on
the imports side. We might see the period of kiwi selling
reverse over the rest of the day.” To contact the reporter on this story:
Kristine Aquino in Singapore at
kaquino1@bloomberg.net To contact the editor responsible for this story:
Dave Liedtka at
dliedtka@bloomberg.net | 2012 | australian-n-z-dollars-advance-before-ecb-refinancing-asian-stocks-open |
Harvey Nichols to Open Store in Kuwait City, Sunday Times Says | By Catherine Airlie | 2012-02-26T07:04:28Z | http://www.bloomberg.com/news/2012-02-26/harvey-nichols-to-open-store-in-kuwait-city-sunday-times-says.html | 2 | 26 | ef85ccee0d993fa451290d26905d1814f09a5111 | Harvey Nichols Group Plc, the
luxury-goods retailer, will open a store in Kuwait City in
September, the Sunday Times reported without saying where it got
the information. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | arvey-nichols-to-open-store-in-kuwait-city-sunday-times-says |
Yen Advances Amid Concern Oil Rally, Greek Crisis Will Slow Global Growth | By Catarina Saraiva | 2012-02-27T22:21:14Z | http://www.bloomberg.com/news/2012-02-26/yen-drops-on-global-growth-outlook-euro-gains-on-zhou-s-imf-help-comment.html | 2 | 26 | 92bf6c541f4e48d780879aa7f3990e92 | The yen rallied against all of its
major counterparts as speculation increased that the surge in
oil prices this month and Europe’s unsettled debt crisis may
weigh on economic recoveries, boosting demand for safety. The euro extended its decline, falling by the most in more
than three months against the yen, after Standard & Poor’s
placed the region’s rescue fund on negative outlook. Some
higher-yielding currencies, including South Africa ’s rand,
erased earlier declines as stocks advanced. The Swedish krona
led losses against the yen among the 16 major currencies. “We’ve still got a reasonable amount of event risk,
particularly with getting the Greek deal over the line,” said
Ray Attrill, a senior currency strategist at BNP Paribas SA in
New York. The yen gained 1.1 percent to 107.99 per euro at 5 p.m. New
York time after rising 1.8 percent, the most since Nov. 9. It
broke a seven-day decline against the common currency, the
longest such streak since January 2010. The Japanese currency
gained 0.7 percent to 80.61 per dollar after earlier touching
81.67, the weakest since May 31. The euro was 0.4 percent weaker
at $1.3398. The euro briefly extended its losses against the dollar
after S&P cut its outlook on the bailout fund, the European
Financial Stability Facility, to negative, reflecting a similar
move on two euro-area nations that act as guarantors to the
facility. The EFSF lost its top credit rating in January after
earlier downgrades to France and Austria. S&P also cut Greece ’s credit rating to “selective
default.” German Vote The euro remained lower even after Germany ’s lower house of
parliament approved a second Greek bailout package worth 130
billion euros ($174 billion). German Chancellor Angela Merkel
and euro-area leaders now shift their focus on whether to
bolster the region’s bailout firewall as they prepare for a
summit meeting in Brussels on March 1-2. The S&P 500 Index rose 0.2 percent after earlier falling as
much as 0.8 percent. The reversal in stock prices helped spur some higher-
yielding currencies to rise against the dollar. The South
African rand rose 0.6 percent to 7.5530 and Mexico ’s peso added
0.1 percent to 12.8907. Sweden’s krona fell 1.3 percent to 12.22 yen and lost 0.6
percent to 6.5957 per dollar. Oil Rally Crude oil for April delivery rallied to $109.95 a barrel
last week, the highest level since May 4. The increase in prices
may weigh on U.S. consumer spending, stalling the economic
recovery and prompting the Federal Reserve to more seriously
consider additional easing measures, said Boris Schlossberg,
director of research at the online currency trader GFT Forex in
New York. Oil dropped 1.6 percent to $107.82 today. It averaged
$95.12 a barrel during 2011. “Dollar-yen is a referendum on the oil prices,” GFT
Forex’s Schlossberg said. “That oil prices have skyrocketed so
far so fast is making a lot of people wonder if it’s going to
have an impact on the U.S. consumer, and it’s damping the
mood.” The dollar erased a gain of as much as 0.6 percent versus
the yen as a technical indicator suggested its recent
appreciation has come too quickly. The greenback’s 14-day
relative strength index against Japan ’s currency was at 72.2,
above the 70 level that some traders see as a sign an asset may
be about to reverse direction. Dollar Resistance The U.S. currency will face so-called resistance near the
82 yen level with a break above that signaling a gain toward
85.60 yen, he said. The yen has plunged since the Bank of Japan (8301) , which has
struggled for more than a decade against deflation, said on Feb.
14 that it would aim for 1 percent annual gains in consumer
prices and would add 10 trillion yen ($124 billion) to the
economy. The Japanese currency has weakened 6.4 percent in the past
month, the biggest decline among 10 developed-nation currencies
tracked by Bloomberg Correlation-Weighted Indexes. The dollar
has lost 1.1 percent and the euro has gained 0.4 percent in the
period, the indexes show. There are also indications the U.S. economy is improving.
The number of Americans signing contracts to buy previously
owned homes in January rose 2 percent from the previous month,
figures from the National Association of Realtors showed today.
A Bloomberg News survey of economists forecast a 1 percent
increase. G-20 Meeting Finance ministers and central bankers of the G-20 nations
meeting in Mexico this weekend concluded that a European review
of its financial firewall in March is “essential” before any
consideration can be made to boost resources for the
International Monetary Fund , the group said in its closing
statement issued in Mexico City yesterday. Progress will be
assessed in April, when officials gather in Washington for the
IMF’s spring meetings. The euro briefly pared its loss against the dollar after
the European Central Bank said today it hasn’t bought any
government bonds for two straight weeks, the first pause since
August. The purchases have dwindled since the ECB funneled a
record 489 billion euros ($655 billion) of three-year loans into
the banking system in December, fueling a bond-market rally and
reducing the need to intervene with its Securities Markets
Program. ‘More Assurance’ The central bank will offer another round of unlimited
three-year loans to financial institutions Feb. 29. “What the ECB has done is significant because they’ve
given a lot more assurance that the euro-zone banks are going to
be fine in terms of recapitalization,” said Chris Fernandes,
vice president of foreign exchange at Bank of the West in San
Ramon, California . “It’s a positive for the euro overall.” The euro declined after Moody’s Investors Service said
Greek default risk “remains high.” The ratings company said in
its weekly credit outlook that there is still a chance creditors
won’t agree to a proposed private-sector involvement, or PSI, in
the nation’s second bailout. Europe ’s most-indebted nation
formally asked investors to exchange their holdings of
government debt for new securities last week. Failure of the British pound to break above its 200-day
moving average versus the dollar means it’s set to weaken,
according to Citigroup Inc. Sterling hasn’t been able to trade above the so-called
resistance level, now at $1.5905, since Oct. 31 and hasn’t
closed above it since Sept. 2. A failure to breach this level
and a decline to $1.5644 may see the British currency fall to
$1.5385, Tom Fitzpatrick, chief technical analyst at Citigroup
Inc. in New York, wrote to clients today. A break above the
moving average would open the pound up to climbing to $1.6165 to
$1.6170, he said. The pound rose as much as 0.2 percent today to $1.5902,
before trading down 0.3 percent at $1.5824. To contact the reporter on this story:
Catarina Saraiva in New York at
asaraiva5@bloomberg.net To contact the editor responsible for this story:
Dave Liedtka at
dliedtka@bloomberg.net | 2012 | yen-drops-on-global-growth-outlook-euro-gains-on-zhou-s-imf-help-commen |
Premafin to Offer Banks Loan to Equity Swaps, Sole Says | By Francesca Cinelli | 2012-02-26T10:12:09Z | http://www.bloomberg.com/news/2012-02-26/premafin-to-offer-banks-loan-to-equity-swaps-sole-says.html | 2 | 26 | 9542ff1f99e01963fef6153cc65f2a10123f4da5 | Premafin Finanziaria SpA (PF) will
propose to its bank lenders to convert part of their loans into
equity in a meeting tomorrow, Il Sole 24 Ore reported, without
saying where it obtained the information. Premafin will ask banks to convert 150 million euros
($201.7 million) of debt into shares of the new entity that will
result from the planned merger of Premafin with Unipol Gruppo
Finanziario SpA (UNI) , Fondiaria-Sai SpA (FSA) and Milano Assicurazioni SpA (MI) ,
the newspaper reported. The company will ask banks to reschedule
the remaining 170 million-euro debt, Il Sole said. To contact the reporter on this story:
Francesca Cinelli in Milan at
fcinelli@bloomberg.net To contact the editor responsible for this story:
James Ludden at
jludden@bloomberg.net | 2012 | premafin-to-offer-banks-loan-to-equity-swaps-sole-says |
Dubai Trading Value Surges to $194 Million, the Highest Since April 2010 | By Zahra Hankir | 2012-02-26T10:15:29Z | http://www.bloomberg.com/news/2012-02-26/dubai-trading-value-surges-to-194-million-the-highest-since-april-2010.html | 2 | 26 | c88810e522c114b8ac6f0e9b47665490d03a7b8d | The value of shares traded on
Dubai’s stock market soared to the highest since April 2010
today to 713 million dirhams ($194 million), according to
Bloomberg data. The benchmark DFM General Index, up 29 percent from a low
in January, rallied 2.7 percent to 1,676.49 at the 2 p.m. close
in the emirate. Trading values had slumped to $5.3 million in November, the
lowest since August 2004. To contact the reporter on this story:
Zahra Hankir in Dubai at
zhankir@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | dubai-trading-value-surges-to-194-million-the-highest-since-april-2010 |
RIM Chief Counts on Europe Sales in Race to Debut Platform | By Hugo Miller | 2012-02-27T07:56:45Z | http://www.bloomberg.com/news/2012-02-26/rim-chief-counts-on-europe-sales-in-race-to-debut-new-platform.html
Research In Motion Ltd. (RIM) , whose U.S.
sales plunged 45 percent last quarter, is counting on Europe to
regain ground lost to Apple Inc. (AAPL) and Google Inc. (GOOG) as the
BlackBerry maker races to introduce a new operating system. Thorsten Heins, who took the top job at RIM last month,
heads to Barcelona for the Mobile World Congress this week to
convince carriers he has the products European consumers want.
His challenge is to bolster market share in the region, where
sales in the U.K., for example, have begun to drop. “In Europe, Asia , the Middle East , Latin America ,
BlackBerry is a very strong brand, a leading brand | 2 | 26 | 177674363e5b4177aed74debf3f68921 | there,” he said, referring to Europe. “It will happen, the
other markets will follow the U.S. market. By then, I will be
ready to play hard.” One thing playing for RIM’s advantage is the missteps of
former market leader Nokia, which have left Apple and Android
dominating the market. As long as Nokia is still struggling,
executives from European carriers that Heins meets with in
Barcelona will want him to succeed, McCourt said. “Carriers around the globe, whether it’s Europe or the
U.S., would love to see another successful platform,” he said.
“They don’t want be just to be low-margin resellers of Apple
and Android.” To contact the reporter on this story:
Hugo Miller in Toronto at
hugomiller@bloomberg.net To contact the editor responsible for this story:
Peter Elstrom at
pelstrom@bloomberg.net | 2012 | rim-chief-counts-on-europe-sales-in-race-to-debut-new-platfor |
Dubai Shares Climb to 10-Month High, Paced by Air Arabia, Emaar Properties | By Zahra Hankir | 2012-02-26T14:32:40Z | http://www.bloomberg.com/news/2012-02-26/dubai-shares-rise-to-10-month-high-on-company-earnings-dividend-optimism.html | 2 | 26 | 8aa63e53bada4d8e91690cc553759f4f | Dubai stocks jumped to a 10-month
high as company earnings and dividends boosted investor
confidence and after a Greek bailout and U.S. jobs data lifted
global markets last week. Emaar Properties PJSC (EMAAR) , developer of the world’s tallest
tower, rose 3.3 percent. Air Arabia (AIRARABI) PJSC climbed to the highest
since April after reporting a 7 percent increase in profit. The
DFM General Index (DFMGI) rallied 2.7 percent to 1,676.49, the highest
since April 21, at the 2 p.m. close in Dubai. The measure, which
entered a bull market last week, surged 29 percent from a low in
January. The value of shares traded soared to the highest since
April 2010 to 713 million dirhams ($194 million), according to
data compiled by Bloomberg. The 31 stocks in Dubai’s benchmark stock index are valued
at an average 0.8 times net assets , or book value, below the
average 1.7 times for emerging market stocks. Volumes have
picked up this month, reaching 705 million shares today, six
times the 12-month daily average of 117 million shares. “The formula for good market performance was there: low
foreign participation, low expectations, and very cheap
valuations. All we needed was a catalyst,” said Fadi Al Said, a
Dubai-based senior investment manager at ING Investment
Management, which oversees about $518 billion worldwide.
“Improved sentiment driving a global rally, higher-than-
expected dividends, Emaar numbers and the United Arab Emirates’
economic recovery” also helped lift the market. Economic Recovery Dubai’s economy may expand as much as 5 percent this year
after growing more than 3 percent last year, according to Sheikh
Ahmed bin Saeed Al Maktoum, head of Dubai’s Supreme Fiscal
Policy Committee. U.S. stocks rose last week, with the Standard & Poor’s 500
Index (SPX) climbing to the highest level since 2008, after European
finance ministers approved 130 billion euros ($175 billion) in
aid for Greece by tapping into European Central Bank profits and
coaxing investors into providing more debt relief to shield the
region from a default. In the U.S., jobless benefits
applications stayed at the lowest level since 2008, consumer
confidence rose to a one-year high and purchases of new homes
exceeded economists’ forecasts. Emaar, the company with the heaviest weighting on Dubai’s
index, said this month fourth-quarter profit more than doubled,
beating analysts’ estimates, as revenue from malls and hotels
grew. The shares gained to 3.14 dirhams, the highest since June
21. Air Arabia, the Middle East’s biggest discount airline, rose
0.7 percent to 74.6 fils, the highest since April 26. Fourth-
quarter profit climbed to 78.7 million dirhams and the company
said it plans to pay a cash dividend of 4.5 fils a share for
2011. Higher Dividends Dubai Islamic Bank PJSC (DIB) , the U.A.E.’s biggest lender
complying with Shariah rules, rallied 1.8 percent. The company
posted a 25 percent rise in full-year profit this month and said
it plans to pay a cash dividend of 15 percent, up from 10
percent a year earlier. The Bloomberg GCC 200 Index (BGCC200) gained 0.3 percent and Saudi
Arabia’s Tadawul All Share Index (SASEIDX) increased 0.2 percent, its
seventh day of gains. Oman’s MSM 30 Index (MSM30) rose 0.4 percent and
Qatar’s QE Index (DSM) increased 0.5 percent. Abu Dhabi’s ADX General
Index (ADSMI) advanced for a sixth day, gaining 1.3 percent. Bahrain’s
BB All Share Index (BHSEASI) retreated 0.9 percent. Kuwait’s market was
closed for a national holiday. In North Africa, Egypt’s EGX 30
Index (EGX30) rallied 2.5 percent. Israel’s TA-25 Index declined 2.3 percent, the most since
Dec. 29 as Bank Leumi Le-Israel and Israel Chemicals Ltd.
retreated. The yield on the country’s 5.5 percent notes due
January 2022 rose two basis points, or 0.02 percentage point, to
4.65 percent. To contact the reporter on this story:
Zahra Hankir in Dubai at
zhankir@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | dubai-shares-rise-to-10-month-high-on-company-earnings-dividend-optimis |
Pemex Shuts Third Crude Export Terminal as Bad Weather Persists | By Randall Woods | 2012-02-26T16:38:47Z | http://www.bloomberg.com/news/2012-02-26/pemex-shuts-third-crude-export-terminal-as-bad-weather-persists.html | 2 | 26 | 0a8718236826caf079a2e6e2b8a6e909e31d73eb | Petroleos Mexicanos , Mexico’s state-
owned oil company , closed a third oil export terminal, Cayo
Arcas, because of bad weather, the country’s Merchant Marine
said today on its website. Oil export terminals Coatzacoalcos and Dos Bocas, which
were reported closed yesterday, remain shut, the Merchant Marine
said in the report . All three are on or near the Gulf of Mexico. Pemex, as the oil company is known, is the third-largest
supplier to the U.S., exporting about 1.3 million barrels of
crude a day in December. Canada is the largest supplier of crude
to the U.S., followed by Saudi Arabia. To contact the reporter on this story:
Randall Woods in Santiago at
rwoods13@bloomberg.net To contact the editor responsible for this story:
Joshua Goodman at
jgoodman19@bloomberg.net | 2012 | pemex-shuts-third-crude-export-terminal-as-bad-weather-persists |
China May Double Rare Earth Exports as Demand Rebounds | By Bloomberg News | 2012-02-27T21:15:22Z | http://www.bloomberg.com/news/2012-02-26/china-may-double-rare-earth-exports-as-overseas-demand-rebounds-on-price.html | 2 | 26 | 691863d8e849484b8973a7461c8e1b2e | China, the biggest supplier of rare
earths, may almost double exports this year and meet quotas set
by the government as lower prices stimulate demand. Chinese exports were 49 percent of the government-alloted
quota in the first 11 months of last year because the slowing
global economy sapped demand, the Ministry of Commerce said in a
Dec. 27 statement . Overseas sales quotas may be virtually
unchanged this year at 31,130 metric tons, based on Bloomberg
calculations. “Export quotas may be met this year as overseas demand
recovers,” Wang Caifeng, a former official overseeing the rare-
earth industry with the Ministry of Industry and Information
Technology , said in an interview in Beijing. “High prices last
year had deterred purchases and led to inventories’ depletion.
Smuggling also hampered exports through illegal channels.” Rare-earths prices have tumbled since the third quarter as
consumers, including makers of electric cars and wind turbines,
reduced use. The average price of lanthanum oxide, a rare earth
used in rechargeable batteries and refining catalysts, was
129,167 yuan ($20,500) a ton in the fourth quarter, 15 percent
less than in the third quarter, according to data from Shanghai
Steelhome Information. Rare-Earth Shares Fall Molycorp Inc. (MCP) , the owner of the largest rare-earth deposit
outside of China, fell 3.1 percent to close at $25.99 in New
York . Lynas Corp., developer of the world’s largest rare-earths
refinery, fell 4.7 percent to A$1.23 in Sydney. China produces at least 90 percent of the world’s rare
earths, used in Boeing Co. (BA) helicopter blades and Toyota Motor
Corp. (7203) hybrid cars. The nation has curbed output and exports of
rare earths since 2009, when quotas were set at 50,145 tons, to
conserve mining resources and protect the environment. Cutting exports boosted prices and sparked concern among
overseas users about access to supplies. China halted some mines
last year to curb overcapacity, cut illegal mining and improve
environmental standards. The Chinese government allocated 10,546 tons of first-round
export quotas to nine companies, including China Minmetals Corp.
and Sinosteel Corp (SINOSZ) ., that met the government’s environmental
protection standards, the ministry said. Export Licenses Another 14,358 tons may be granted to 17 other companies,
including Baotou Iron & Steel Group, China ’s biggest producer,
that weren’t granted an export license for this year, it said.
Baotou is one of 21 smelters waiting for approval, it said. “Baotou will be able to get the license to resume exports
this year,” Wang said. “It’s just a matter of time as it takes
a while for the government to review the company’s environmental
improvement.” Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., the
rare-earth unit of Baotou Iron & Steel Group, has yet to receive
approval to resume exports, a company spokesman, who declined to
be identified because of company policy, said today by phone
without providing any further details. Baotou Steel Rare Earth gained 2.6 percent to 51.50 yuan
today in Shanghai , beating a 0.4 percent gain in the benchmark
Shanghai Composite Index. China is encouraging its companies to develop rare-earth
mines abroad to help ease pressure on domestic producers, Wang
said. China has the technical expertise and human resources
required by overseas company in mine development and processing,
she said. Buying Mines Australia ’s Lynas and Greenwood Village, Colorado-based
Molycorp. should cooperate with China, including allowing
Chinese groups to buy stakes in their mines, said Wang, who’s
overseen the industry for more than 30 years. Australia blocked China’s bid in 2009 to gain control of
the world’s richest rare-earth deposit on concern it would
threaten supply to non-Chinese buyers. State-owned China Non-
Ferrous Metal Mining (Group) Co. in May 2009 offered A$252
million ($271 million) for a 51.6 percent stake in Lynas Corp. (LYC) ,
which needed cash to resume development of the Mount Weld rare-
earth mine in Western Australia . “It was a loss to Australia, not to China.” Wang said,
“They should be more open-minded.” China’s full-year export quota for rare earths this year is
expected to be about 31,130 tons, according to Bloomberg News
calculations based on first-round quota figures given by the
commerce ministry on Dec. 27. The quota was 30,184 tons in 2011
and 30,258 tons in 2010. Wang is helping form a rare-earth association in China,
which is expected to start in the second quarter and will be
funded by industry companies, she said. The association will
help the government’s planning and drafting rules for the
industry, she said. To contact Bloomberg News staff for this story:
Helen Yuan in Shanghai at
hyuan@bloomberg.net To contact the editor responsible for this story:
Rebecca Keenan at
rkeenan5@bloomberg.net | 2012 | china-may-double-rare-earth-exports-as-overseas-demand-rebounds-on-price |
ICL Drops After Biggest Weekly Rally Since 2009: Tel Aviv Mover | By Shoshanna Solomon | 2012-02-26T16:01:41Z | http://www.bloomberg.com/news/2012-02-26/israel-chemicals-declines-after-biggest-weekly-rally-since-2009.html | 2 | 26 | a65de1950b5045d6672e4800e6b47eb4b01c808f | Israel Chemicals Ltd. (ICL) , which
extracts minerals from the Dead Sea to make fertilizer and
potash , declined the most in almost five months after the stock
had the biggest weekly surge since 2009. The Tel Aviv-based company’s shares fell 4.3 percent, the
biggest drop since Oct. 4, to 40.98 shekels at the 4:30 p.m.
close in Tel Aviv. The shares jumped 9.7 percent last week, the
most since the week ended July 30, 2009, when it rallied 15
percent. “It seems to be profit-taking after a strong rally of the
share most of last week,” Steven Shein, a trader at Psagot
Investment House Ltd. in Tel Aviv said by phone. Israel Chemicals advanced last week on investor speculation
the shares are undervalued compared with its peers, Mosaic Co. (MOS) ,
the largest U.S. potash producer, and Potash Corporation of
Saskatchewan Inc. , the Canadian fertilizer producer. The U.S.
Department of Agriculture said farmers in 2012 will receive $5 a
bushel for corn, down 19 percent from last year, while wheat
prices will slide 14 percent and soybeans may drop 1.7 percent. Farmers apply potash, a form of potassium, to their fields
to help strengthen plant root systems and make their crops more
resistant to drought. Israel Chemicals is trading at 9 times estimated earnings,
compared with 12.6 estimated earnings for Potash Corp. and 12.3
times for Mosaic. Israel Chemicals has advanced 3.8 percent
since the start of the year. Israel Corp. (ILCO) , which has a 52.3 percent stake in Israel
Chemicals according to data compiled by Bloomberg, declined 5
percent to 2,300 shekels. To contact the reporter on this story:
Shoshanna Solomon in Tel Aviv at
ssolomon22@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | israel-chemicals-declines-after-biggest-weekly-rally-since-2009 |
BP CEO Expects Gulf Rig Trial to Last Into 2014, Telegraph Says | By Andrea Gerlin | 2012-02-26T10:02:47Z | http://www.bloomberg.com/news/2012-02-26/bp-ceo-expects-gulf-rig-trial-to-last-into-2014-telegraph-says.html | 2 | 26 | 14d4d6fd84e97199a9ba7589b3ac3f31911ea833 | BP Plc (BP/) expects the court case in the
2010 Deepwater Horizon oil rig disaster in the Gulf of Mexico
may stretch into 2014, the Sunday Telegraph reported, citing an
interview with Chief Executive Officer Bob Dudley. “We have to remember we are a business that invests in
decades-long cycles,” Dudley said in the interview, which the
Sunday Telegraph said was his first in-depth newspaper interview
since he became CEO in 2010. The oil company has altered its practices since the
accident and is “now using the toughest standards in the world
for floating drilling rigs,” the Sunday Telegraph quoted Dudley
as saying. BP won’t cut its dividend and will consider share
buy-backs in the future, Dudley said, according to the
newspaper. To contact the reporter on this story:
Andrea Gerlin in London at
agerlin@bloomberg.net To contact the editor responsible for this story:
Mike Harrison at
mharrison5@bloomberg.net | 2012 | bp-ceo-expects-gulf-rig-trial-to-last-into-2014-telegraph-says |
South Korean Rate-Cut Case Diminishes as Oil Adds Price Pressures: Economy | By Eunkyung Seo and Shamim Adam | 2012-02-27T04:34:16Z | http://www.bloomberg.com/news/2012-02-26/south-korean-manufacturers-confidence-rises-to-five-month-high.html | 2 | 26 | 7fb42bcc05ee4368b80e83d5c735cf33 | South Korea ’s case for cutting
interest rates is diminishing as domestic sentiment improves and
gains in oil costs threaten to push inflation beyond the
government’s forecast. Manufacturers’ confidence on the prospects for March rose
to a five-month high, increasing to 84 from 81, a Bank of Korea
index showed in Seoul today. Sentiment also improved at other
businesses, the report said. Data last week showed consumer
confidence at a three-month high. South Korean stocks fell today after Finance Minister Bahk Jae Wan said Feb. 25. that oil costs will have “far-reaching
effects” on Asia’s fourth-largest economy and may drive
consumer-price gains beyond a full-year estimate of 3.2 percent.
Monetary easing in the U.S., Europe and Japan also adds to
inflation pressures, Bahk said in an interview at a Group of 20
nations meeting in Mexico City. “The Bank of Korea will likely stand pat until late this
year as rising oil prices limit policy room,” said Kong Dong Rak, a fixed-income analyst at Taurus Investment & Securities
Co. in Seoul. The Kospi Index fell 1.3 percent as of 12:48 p.m. local
time on concern about oil costs and weakness in the yen, which
makes Korean goods less competitive with those of export rival
Japan. The Bank of Korea has kept rates on hold for eight months
as officials monitor progress in taming Europe’s debt crisis,
which poses a threat to exports. ‘Danger Zone’ Asian stocks swung between gains and losses with the MSCI
Asia Pacific Index falling 0.2 percent as of 12:52 p.m. in Tokyo
after the Group of 20 nations told Europe to come up with more
financial firepower before they consider lending outside
support. The world economy is “not out of the danger zone”
amid fragile financial systems, high debt and higher world oil
prices, International Monetary Fund Managing Director Christine Lagarde said. Oil retreated 0.2 percent following the longest rally since
January 2010 last week. South Korea’s Kim Choong Soo, the governor of the central
bank, said he suspected that more stimulus by advanced economies
was not the right solution for reviving global growth, in
remarks prepared for a Feb. 25 seminar in Mexico . Defusing the European debt crisis is crucial to aid
confidence in emerging economies, the group best-placed to lead
an economic rebound, Kim said. For now, those nations may hold
off on measures to stimulate growth as they wait to see whether
a “much worse scenario” emerges from the euro area’s woes, the
central banker said. ‘Worst is Over’ Kim and his board kept the benchmark seven-day repurchase
rate unchanged at 3.25 percent this month. Barclays Capital said
Feb. 24 report the level may stay unchanged this year. “There is a growing perception that the worst is over for
Korea’s growth and that weakness in domestic demand during the
latter part of last year was due to a temporary decline in
sentiment-sensitive activity, as fears over Europe were
rekindled,” the investment bank said. Elsewhere in Asia, Thailand ’s industrial production
probably dropped 14 percent in January after a 26 percent
decline in December, economists surveyed by Bloomberg predicted
ahead of a report by the Office of Industrial Economics today. In Europe, France may say producer prices rose 4.1 percent
in January from a year earlier, while business confidence in
Italy was near a two-year low, according to Bloomberg surveys of
economists. An index of U.S. pending home sales probably rose 1 percent
in January from the previous month, boosting signs of
stabilization in the nation’s housing market, economists predict
before a report from the National Association of Realtors today.
The Federal Reserve Bank of Dallas may say its index of
manufacturing activity rose to 15.5 this month from 15.3 in
January, a separate survey showed. In South Korea , the business survey, conducted from Feb. 13
to Feb. 20, was based on responses from 1,623 manufacturers and
880 other businesses. The measure of expectations at non-
manufacturing companies advanced to 80 from 79, the first
increase since October. To contact the reporter on this story:
Eunkyung Seo in Seoul at
eseo3@bloomberg.net To contact the editor responsible for this story:
Paul Panckhurst at
ppanckhurst@bloomberg.net | 2012 | south-korean-manufacturers-confidence-rises-to-five-month-hig |
N.Z. Unexpectedly Posts Trade Deficit on Weaker Exports, Aircraft Imports | By Tracy Withers | 2012-02-26T22:52:49Z | http://www.bloomberg.com/news/2012-02-26/n-z-unexpectedly-posts-trade-deficit-on-weaker-exports-aircraft-imports.html | 2 | 26 | d09c0d1483b34f06b8e39b1eb59a6a6e | New Zealand unexpectedly posted a
trade deficit in January as exports fell and an airline imported
a large aircraft, weakening the local currency. Imports exceeded exports by NZ$199 million ($167 million),
from a revised NZ$306 million surplus in December, Statistics
New Zealand said today in Wellington. Economists expected a
NZ$167 million surplus, according to the median of 10 forecasts
in a Bloomberg News survey. The local dollar’s 11.4 percent rise from a year ago, the
biggest gainer among the Group of 10 currencies, is curbing
shipments abroad just as the nation is counting on exports to
boost an economic recovery from earthquakes in the South Island
city of Christchurch. Reserve Bank of New Zealand Governor Alan Bollard last month said that exchange-rate appreciation was
reducing exporters’ returns. “The high currency will choke off export-sector returns
and will impede the economic rebalancing,” Mark Smith , an
economist at ANZ National Bank Ltd. in Wellington, said in an e-
mailed note. “While January’s statement highlighted the RBNZ’s
concerns over the strong dollar, there is little they can do
about it.” The so-called kiwi traded at 83.71 U.S. cents at 11:35 a.m.
in Wellington compared with 83.81 cents before the data were
released. The nation’s currency gained 6.4 percent last month
against the U.S. dollar , the largest monthly gain since May
2009. November Aircraft The aircraft import, valued at about NZ$214 million, was
the second in three months. The statistics agency today
published a revised, wider November trade deficit after an
imported aircraft worth NZ$224 million which was reported late. Exports fell to a four-month low of NZ$3.74 billion, near
the NZ$3.7 billion median of economists estimates. Exports rose
13 percent from a year earlier. Commodity prices rose 0.1 percent in January from a year
earlier, according to an ANZ National Bank (NBL) index published Feb.
2. After adjustment for currency gains, prices fell 4.4 percent
from a year earlier. The Treasury Department said Feb. 7 that there is a risk of
growth in the nation’s main trading partners being weaker this
year than predicted in forecasts published late October, citing
the impact of Europe ’s debt crisis on global demand. Dairy Demand Overseas sales of milk powder, butter and cheese, which
make up a third of the all exports, increased 25 percent in
January from the year-earlier month to NZ$1.3 billion. December
dairy sales were a record NZ$1.35 billion. Imports fell to a six-month low of NZ$3.94 billion, today’s
report showed. Economists predicted NZ$3.51 billion. From a year
earlier, imports rose 19 percent. Crude oil shipments gained 39 percent from January last
year as the price rose by more than a fifth, today’s report
showed. Vehicle purchases also increased while machinery imports
fell. New Zealand had a trade surplus of NZ$646 million in the 12
months ended Jan. 31, narrowing from a revised NZ$853 million
surplus in the year through December but wider than a revised
NZ$330 million in November. To contact the reporter on this story:
Tracy Withers in Wellington at
twithers@bloomberg.net To contact the editor responsible for this story:
Stephanie Phang at
sphang@bloomberg.net | 2012 | n-z-unexpectedly-posts-trade-deficit-on-weaker-exports-aircraft-imports |
Prudential May Move Head Office to Hong Kong, Sunday Times Says | By Catherine Airlie | 2012-02-26T17:34:47Z | http://www.bloomberg.com/news/2012-02-26/prudential-may-move-head-office-to-hong-kong-sunday-times-says.html | 2 | 26 | eb4bdadbe3c17a6368f6118ddac2e7adfaae56ab | Prudential Plc may move its
headquarters to Hong Kong from London, the Sunday Times
reported, citing a review to be mentioned in the company’s
annual report this week. The move would be in response to the so-called European
Solvency II regulations that increase capital requirements, the
newspaper reported. E-mails to and a telephone message left for company
spokesmen seeking comment weren’t returned. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | prudential-may-move-head-office-to-hong-kong-sunday-times-says |
Top-Ranked Kentucky, Syracuse Clinch College Basketball Conference Titles | By Nancy Kercheval | 2012-02-26T06:20:25Z | http://www.bloomberg.com/news/2012-02-26/top-ranked-kentucky-syracuse-clinch-college-basketball-conference-titles.html | 2 | 26 | 34f483a066bcba63441937ebf8e80994ab230358 | Top-ranked University of Kentucky
defeated Vanderbilt University 83-74 and No. 2 Syracuse beat the
University of Connecticut 71-69 to win their respective men’s
college basketball conference titles. Kentucky clinched the Southeastern Conference regular-
season title and Syracuse claimed the top spot in the Big East
Conference. At Rupp Arena in Lexington, Kentucky, Anthony Davis scored
a career-high 28 points last night for the Wildcats. “Whatever they gave me, I fed off of it,” Davis told
reporters. The Wildcats (28-1, 14-0 SEC) have won 51 consecutive home
games and the last 20 games overall. Kentucky can go undefeated
for the third time in the SEC with victories against Georgia and
Florida in the next week. Jeffery Taylor scored 19 points for Vanderbilt (20-9, 9-5
SEC), who had a 37-36 halftime advantage. At Harry A. Gampel Pavilion in Storrs, Connecticut , Fab
Melo scored 11 points, including a final follow-up dunk with 31
seconds left to give Syracuse the victory. Kris Joseph scored 21 points for the Orange and Dion
Waiters had 10. Jeremy Lamb had 19 points and Andre Drummond had 17 points
and 14 rebounds for the Huskies (17-11, 7-9 Big East), who tied
the game with 47 seconds left to play after being down by 17
points at the half. “We should have won that game,” Drummond told reporters.
“We had a couple of tough plays down the stretch and they made
their shots. At the end of the game, we didn’t get the foul call
that we were looking for.” To contact the reporter on this story:
Nancy Kercheval in Washington at
nkercheval@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at
msillup@bloomberg.net | 2012 | op-ranked-kentucky-syracuse-clinch-college-basketball-conference-titles |
Gillard Beats Rudd 73-29 in Australian Leadership Vote, SMH Reporter Says | By Malcolm Scott | 2012-02-26T23:50:55Z | http://www.bloomberg.com/news/2012-02-26/gillard-beats-rudd-73-to-29-in-australia-s-caucus-vote-smh-s-coorey-says.html | 2 | 26 | 4a8c772fb2435b99e8350fa4fa0bf0f905a2e727 | Julia Gillard has defeated Kevin
Rudd in a leadership ballot among Labor caucus members in
Canberra today, according to Sydney Morning Herald reporter Phil
Coorey. Coorey posted the vote result on Twitter. Gillard won 73 votes to Rudd’s 29, Coorey said. To contact the editor responsible for this story:
Malcolm Scott at
mscott23@bloomberg.net | 2012 | gillard-beats-rudd-73-to-29-in-australia-s-caucus-vote-smh-s-coorey-says |
Rory McIlroy Will Play Hunter Mahan in the Final of World Match Play Golf | By Dex McLuskey | 2012-02-26T18:28:12Z | http://www.bloomberg.com/news/2012-02-26/rory-mcilroy-will-play-hunter-mahan-in-the-final-of-world-match-play-golf.html | 2 | 26 | ce11469298ecb7a565661b64fe8975468dbe741e | Rory McIlroy will play Hunter Mahan
in today’s final of golf’s World Match Play Championship. McIlroy of Nothern Ireland beat England’s Lee Westwood 3-
and-2, while Mahan defeated fellow American Mark Wilson 2-and-1
in this morning’s semifinals at the Ritz Carlton’s Dove Mountain
course in Marana, Arizona. Westwood led by three after four holes. McIlroy tied the
match by the eighth hole and took the lead for good with a
birdie at the next. He stretched the advantage to three holes
after 13 and sealed the win when Westwood had a bogey at No. 17. Mahan won the first two holes and never lost the lead
against Wilson. McIlroy will replace England’s Luke Donald as No. 1 in the
Official World Golf Ranking if he beats Mahan in the final. To contact the editor responsible for this story:
Dex McLuskey at
dmcluskey@bloomberg.net | 2012 | rory-mcilroy-will-play-hunter-mahan-in-the-final-of-world-match-play-golf |
Syria’s Constitutional Revisions Get 89% Support as EU Tightens Sanctions | By Nayla Razzouk and Emre Peker | 2012-02-27T15:26:12Z | http://www.bloomberg.com/news/2012-02-26/assad-holds-referendum-on-syria-s-constitution-amid-escalating-violence.html | 2 | 26 | f39c863f09b8489b9618cb095cd5dabb | Syria ’s government said its citizens
approved a new constitution supporting President Bashar al- Assad’s bid to introduce political pluralism after almost a year
of violence as the European Union tightened sanctions. The referendum drew 57.4 percent of eligible voters, or
about 8.4 million people, with 89.4 percent of casting ballots
in favor of the proposal, the state-run Syrian Arab News Agency
said on its website, citing the Interior Ministry. Fewer than 1
million people, or 9 percent of voters, rejected the new
charter, Syrian state television said. Assad’s forces continued
to shell cities in central and northern Syria during and after
the vote. “The referendum in Syria is nothing more than a farce,”
German Foreign Minister Guido Westerwelle said in a statement
late yesterday. “Phony votes cannot contribute to a solution to
the crisis.” Assad is facing growing international pressure to end his
crackdown on dissent as he seeks to affirm his mandate as
Syria’s leader with the new constitution. The EU decided today
to freeze the central bank’s assets, ban precious-metals trading
with the country and prohibit cargo-only flights to the bloc.
The measures build on an oil embargo approved last September.
French President Nicolas Sarkozy , who is campaigning for re-
election, said France would press Russia and China to drop their
opposition to United Nations sanctions against Syria. Cities Shelled At least 41 people died today in Syria, including 39
protesters and two soldiers, according to Al Arabiya television
and SANA. Shelling continued in the Baba Amr region in the
central city of Homs, Al Arabiya said, while the army also
attacked Idlib in the north, Al Jazeera reported. About 8,500 people have been killed in the government’s
crackdown against the protests that began last March, according
to the Arab Organization for Human Rights. Assad promised constitutional changes last year as he
sought to placate opponents by freeing some political prisoners,
changing the Cabinet and lifting a 48-year-old emergency law.
The new constitution promises democratic elections while
limiting presidents to two seven-year terms, according to a
draft published by SANA. Assad’s Baath Party has had a monopoly
on politics since seizing power in a 1963 coup. Voting was extended to 10 p.m. local time yesterday because
of crowds in 14,185 polling stations across the country,
according to state television, which earlier aired live footage
of people waiting to cast ballots. Opposition groups said they
would boycott the vote. Opposition Boycott “Participation is low in many areas,” Rami Abdel Rahman,
head of the U.K.-based Syrian Observatory for Human rights, said
by phone. “Participating in this referendum is like taking part
and giving legitimacy for the Syrian regime in the killings. The
boycott is meant to send a message to the regime that the people
do not want these reforms while you are killing them.” Syria’s army has intensified attacks since a resolution
supported by the Arab League aimed at installing a transitional
government, to be followed by elections, was vetoed at the UN
Security Council by Russia and China on Feb. 4. Saudi Arabia and Qatar have urged arming the Syrian
opposition, raising the prospect of a widening conflict after
the “Friends of Syria” group met in Tunis on Feb. 24 to
pressure Assad to step down. Weapons Proposal The two Arab nations backed a plan to send weapons to
rebels fighting the Syrian regime, a call echoed by prominent
U.S. Republican lawmakers, while the Obama administration and
officials from Morocco, Tunisia and Bahrain said they are
against further militarization of the conflict. “Syria rejects and condemns all that was said and decided
at the meeting of the enemies of Syria in Tunisia,” the
official news agency reported . The government considers calls to
arm the opposition an act of interference in its internal
affairs and a form of support for terrorist groups, it said. Russia backed Syria’s stance on the “Friends of Syria”
meeting, with Foreign Minister Sergei Lavrov saying today that
the gathering in Tunisia was “one-sided” and won’t facilitate
political dialogue. To contact the reporters on this story:
Nayla Razzouk in Dubai at
nrazzouk2@bloomberg.net ;
Emre Peker in Ankara at
epeker2@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | assad-holds-referendum-on-syria-s-constitution-amid-escalating-violence |
Mao’s Red Flag Returning to Drive China Leaders From Audi: Cars | By Bloomberg News | 2012-02-27T11:01:18Z | http://www.bloomberg.com/news/2012-02-26/mao-s-red-flag-limo-returns-for-chinese-officials-in-threat-to-audi-cars.html
Chairman Mao Zedong ’s Red Flag
limousine is making a comeback after a $280 million overhaul,
seeking to regain its standing as the ride of Chinese leaders
from Volkswagen AG (VOW) ’s Audi. China FAW Group Corp. (CHFAWZ) , which built the first Hongqi | 2 | 26 | 88678485020846729d0cc8b693f36fbc | year. Ministries and related agencies spent about 100 billion
yuan on official cars a year, according to Paur at Ipsos. FAW isn’t the only Chinese automaker reviving brands. SAIC Motor Corp. (600104) , the country’s biggest automaker, has
included the Shanghai brand in its product plans, the company
said in an e-mailed response, without giving additional details.
Generally used for lower-ranked bureaucrats who didn’t merit a
Red Flag, production of the brand was suspended in 1991 after
SAIC started making Santana cars with Volkswagen. In the end, nostalgia and government support for homegrown
brands can only do so much, said Cao He, an analyst with China
Minzu Securities Co. in Beijing. “The bottom line is that the Red Flag and other home-
designed cars need to be good enough,” Cao said. To contact Bloomberg News staff for this story:
Tian Ying in Beijing at
ytian@bloomberg.net To contact the editor responsible for this story:
Young-Sam Cho at
ycho2@bloomberg.net | 2012 | ao-s-red-flag-limo-returns-for-chinese-officials-in-threat-to-audi-cars |
Greece Sees $15 Billion Revenue From Hydrocarbons, Minister Says | By Paul Tugwell | 2012-02-26T12:56:06Z | http://www.bloomberg.com/news/2012-02-26/greece-sees-15-billion-revenue-from-hydrocarbons-minister-says.html | 2 | 26 | a9415ff97cbb02cb6eba8bc437a52bddbb591e21 | Greece expects to earn $15 billion
in revenue over the next 10 years from existing oil and natural
gas reserves, Deputy Energy Minister Yiannis Maniatis said. “What we know today about potential hydrocarbon reserves
in Greece is little,” Maniatis said today in an interview
televised live on private Mega TV. The potential revenue isn’t
included in Greece’s loan agreement with international
creditors, Maniatis said. Greece is trying to learn from the example of Cyprus, which
recently discovered natural gas reserves, and the two countries
are working closely to see how they can combine their
hydrocarbon exploration efforts, Maniatis said. To contact the reporter on this story:
Paul Tugwell in Athens at
ptugwell1@bloomberg.net To contact the editor responsible for this story:
Jerrold Colten at
jcolten@bloomberg.net | 2012 | greece-sees-15-billion-revenue-from-hydrocarbons-minister-says |
Pearson to Raise Dividend by Almost 10%, Sunday Times Reports | By Catherine Airlie | 2012-02-26T08:35:32Z | http://www.bloomberg.com/news/2012-02-26/pearson-to-raise-dividend-by-almost-10-sunday-times-reports.html | 2 | 26 | 30261ded61bbce3f1b9a8c94223bdc369e65c9f6 | Pearson Plc, the owner of the
Financial Times, may raise its dividend by almost 10 percent,
the Sunday Times reported without saying where it obtained the
information. The rise will come after growth at the company’s U.S
education unit, according to the newspaper. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | pearson-to-raise-dividend-by-almost-10-sunday-times-reports |
Montagu Set to Buy U.K.’s College of Law, Sunday Times Reports | By Catherine Airlie | 2012-02-26T09:28:06Z | http://www.bloomberg.com/news/2012-02-26/montagu-set-to-buy-u-k-s-college-of-law-sunday-times-reports.html | 2 | 26 | c8342ed8da568e72070c9c3a46dde2c318f22cc4 | Montagu Private Equity LLP is poised
to buy the College of Law , Europe ’s largest lawyers’ school, in
a 200 million-pound ($317 million) deal, according to the Sunday
Times, citing unidentified sources. The London-based fund is in exclusive talks with the
institution, which has charitable status, the newspaper said.
The business may be split from the charity with funds raised put
into a foundation to provide student scholarships, according to
the article. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | ontagu-set-to-buy-u-k-s-college-of-law-sunday-times-reports |
Nokia Siemens in Talks to Sell Fixed-Line Assets | By Marie Mawad | 2012-02-27T09:26:52Z | http://www.bloomberg.com/news/2012-02-26/nokia-siemens-is-in-talks-over-sale-of-non-core-assets-ceo-says.html | 2 | 26 | 0fcc8b13da78bcef18ff5bd26c21450f1af58b25 | Nokia Siemens Networks, the phone
equipment venture between Nokia Oyj and Siemens AG (SIE) , is in talks
with potential buyers of its non-core assets, Chief Executive
Officer Rajeev Suri said in an interview. Nokia Siemens, which competes with Ericsson AB and Alcatel-
Lucent (ALU) as well as Chinese vendors such as Huawei Technologies
Co., expects more divestments after it sold three divisions last
quarter to refocus its business on mobile broadband, Suri said
at the Mobile World Congress in Barcelona. “We are already negotiating with buyers to sell some
assets,” Suri said yesterday in the interview. “We are taking
other assets into maintenance mode, shifting investments out
into other segments.” Ericsson AB is not interested in the buying assets Nokia
Siemens has put up for sale, as it focuses on organic growth,
Hans Vestberg, CEO of the Stockholm-based rival, said in a
separate interview at the Mobile World Congress today. “Our main strategy is organic growth. We want to grow with
our research and development,” Vestberg said. “We are always
looking around for different types of assets, but today I don’t
have any interest in that portfolio,” he said. ‘Perfect Voice’ Nokia Siemens’s voice-over-Internet-protocol unit called
“perfect voice,” carrier ethernet, fixed narrowband and
business support systems are among assets the Espoo, Finland-
based company is looking for acquirers, CEO Suri said. Suri said in November that Nokia Siemens would scale back
product lines to concentrate on mobile broadband networks and
services to become profitable. The venture has posted losses in
all but two quarters since it was set up in April 2007. Nokia Siemens sold its microwave unit to Canada ’s
DragonWave, the WiMax business to NewNet Communications in the
U.S., and a fixed-line operation to Adtran in the U.S. in the
fourth quarter of 2011. Nokia Siemens has set a strategy of reducing annual costs
by 1 billion euros ($1.3 billion). The telecom equipment maker
said in November it would eliminate 17,000 jobs worldwide,
equivalent to about 23 percent of its workforce, by the end of
2013. Union Negotiations Nokia Siemens is negotiating with trade unions in countries
affected by the cuts, Suri said. He declined to say when an
agreement would be reached in Germany and Finland . Shares (NOK1V) of Nokia fell 5.5 percent, to 4.09 euros in
Helsinki. The handset maker unveiled in Barcelona a Windows
Phone that’s 30 percent cheaper than its least expensive model
based on Windows’s software to capture first-time users against
similar devices powered by Google Inc.’s Android. Siemens, based
in Munich, slipped 1 percent to 74.25 euros on the Frankfurt
exchange. Ericsson (ERICB) dropped 1.6 percent to 66.60 euros in Stockholm .
The company announced today it would team up with Western Union
Co. (WU) to market a mobile wallet service. To contact the reporter on this story:
Marie Mawad in Barcelona via
mmawad1@bloomberg.net To contact the editor responsible for this story:
Kenneth Wong at
kwong11@bloomberg.net | 2012 | nokia-siemens-is-in-talks-over-sale-of-non-core-assets-ceo-says |
U.A.E. Central Bank Lifts Dividend Restrictions, Khaleej Says | By Mourad Haroutunian | 2012-02-26T09:44:37Z | http://www.bloomberg.com/news/2012-02-26/u-a-e-central-bank-lifts-dividend-restrictions-khaleej-says.html | 2 | 26 | 8c33e1c58d3dec0fd8844efee07a9700b1eea165 | The central bank of the United Arab
Emirates lifted restrictions on cash dividend, Al-Khaleej
reported, without saying where it obtained the information. The regulator approved distributions that exceeded 50
percent of 2011 profit, it said. To contact the reporter on this story:
Mourad Haroutunian in Riyadh at
mharoutunian@bloomberg.net To contact the editor responsible for this story:
Shaji Mathew at
shajimathew@bloomberg.net | 2012 | u-a-e-central-bank-lifts-dividend-restrictions-khaleej-says |
CPP Lenders Won’t Renew Borrowing Facilities, Sunday Times Says | By Catherine Airlie | 2012-02-26T11:53:29Z | http://www.bloomberg.com/news/2012-02-26/cpp-lenders-won-t-renew-borrowing-facilities-sunday-times-says.html | 2 | 26 | f365affaff6daa1bc61e544ca0756a81bd529484 | CPP Group Plc’s (CPP) lenders won’t renew
borrowing facilities that expire in March 2013, the Sunday Times
reported without saying where it got the information. CPP Group, a U.K. company that provides protection against
credit-card and identity theft, said it reached an agreement
Feb. 24 with the Financial Services Authority on allegations of
mis-selling, according to the article. Paul Stobart, the company’s chief executive officer is
trying to agree new loans before its financial results are due
next month, the newspaper reported. Royal Bank of Scotland Plc,
Barclays Plc (BARC) and Banco Santander SA provided the borrowing
facilities expiring next year, according to the report. CPP remains in talks with stakeholders including banks
about the impact the FSA investigation will have on its
business, the company said in a Feb. 24 statement sent by e-
mail. Helen Spivey, a spokeswoman in York, England , for CPP
Group didn’t have any immediate further comment when contacted
by phone today. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | cpp-lenders-won-t-renew-borrowing-facilities-sunday-times-says |
Nobody Wants TMX With 198% Return on Maple Bid: Real M&A | By Sean B. Pasternak and Charles Mead | 2012-02-26T18:01:01Z | http://www.bloomberg.com/news/2012-02-26/nobody-wants-tmx-with-198-return-on-maple-bid-real-m-a.html | 2 | 26 | d3f5b0c96cb44ce3bb41fede35743ddc | Not even the prospect of reaping a
198 percent annualized return in one month can dissuade traders
from betting that the $3.73 billion takeover of TMX Group Inc. (X)
is more likely to unravel than any other deal in North America . TMX, owner of the Toronto Stock Exchange, is trading 15
percent below a C$50-a-share offer from 13 Canadian banks and
pension funds known as Maple Group Acquisition Corp. The gap is
the widest of any billion-dollar deal in the U.S. or Canada,
indicating traders aren’t convinced Maple can get the approvals
it needs even after the group extended its Feb. 29 deadline by a
month, according to data compiled by Bloomberg. While Canada’s largest pension fund said last week that it
is optimistic the Maple bid will be approved, the nation’s
competition watchdog has raised “serious concerns” about
combining the country’s largest exchange with its biggest rival
to create an entity that controls 87 percent of trading and
clears every transaction. If the TMX deal fails, it would join
more than $30 billion in announced takeovers, including Deutsche
Boerse AG (DB1) ’s agreement for NYSE Euronext (NYX) , which have already been
terminated or blocked by regulators in the past year. “We go back to the issues from day one,” said Yemi Oshodi,
managing director of M&A and special situations trading at New
York-based WallachBeth Capital LLC, said in a telephone
interview. For the deal to be approved, “you would need a
substantial package of divestitures to create some other
competitor. I just can’t see them offering enough concessions to
the regulators to assuage their concerns,” he said. An extension would be “just a glimmer of hope, because
what’s another month going to do?” said Oshodi, who estimates
the odds that Maple can close the deal at about 15 percent. ‘Material Detriment’ Peter Block , a spokesman for Maple, declined to comment
beyond its Feb. 24 statement, which extended the group’s
takeover offer to TMX shareholders to March 30. “Maple and TMX Group are committed to the transaction and
are working diligently to obtain the required regulatory
approvals,” it said. “They are in ongoing discussions with the
regulators and have made numerous submissions to them.” “However, there can be no assurance that remedies short of
a material detriment will address the issues and concerns raised
by the securities regulatory authorities,” the statement said. Carolyn Quick, a spokeswoman for Toronto-based TMX,
declined to comment on when the transaction would be completed. Maple, made up of firms including Toronto-Dominion Bank (TD) ,
Manulife Financial Corp. (MFC) and the Ontario Teachers’ Pension Plan ,
began its C$3.73 billion ($3.73 billion) bid nine months ago,
when it challenged an agreement that TMX and London Stock
Exchange Group Plc announced in February 2011. One-Stop Shop The group , which sought to keep the Toronto exchange owner
in local hands, was left as the only bidder after London-based
LSE failed to get support from TMX owners and dropped its stock
offer on June 29. Maple intends to acquire 70 percent to 80 percent of TMX in
cash and the rest with Maple stock. It also plans to buy Alpha
Group , an alternative trading platform that competes with TMX,
and the Canadian Depository for Securities Ltd., which protects
buyers and sellers from losses if one party is unable to pay as
the nation’s securities clearinghouse, to integrate into TMX. The combined entity would handle almost nine out of every
10 equity trades in Canada and have a monopoly on processing the
country’s securities transactions. While Michael Sabia , chief executive officer of Montreal-
based Caisse de Depot et Placement du Quebec , said he’s “quite
optimistic” that its group’s takeover of TMX will be approved
by regulators, merger arbitragers remain more skeptical of its
completion than any other acquisition in North America. Merger Arbitrage With TMX ending at C$42.60 a share last week, the
difference between its price and the cash portion of Maple’s
deal offer is now C$7.40, data compiled by Bloomberg show. On a
percentage basis, shares of TMX trade at the biggest discount to
its takeover bid among all pending deals in the U.S. or Canada
worth $1 billion or more, the data show. Maple has now pushed back its offer deadline five times
since proposing to buy the Toronto exchange owner in May. If the
deal isn’t cleared by regulators, the group is required to pay
TMX C$39 million. The transaction still needs approval from
Canada’s Competition Bureau and provincial regulators including
those in Quebec and Ontario. Alexa Keatinge, a spokeswoman for the Competition Bureau,
said in an e-mailed statement last week in response to comments
from Caisse de Depot’s CEO that “there are no new developments
to report regarding the Bureau’s ongoing review of Maple’s
proposed acquisitions at this time.” Deal Breaker Keatinge declined to make any further comment on when it
will reach a decision on Maple’s takeover proposal. The Competition Bureau said on Nov. 29 that it had
“serious concerns about the likely competitive effects of the
proposed transactions in the current environment, primarily in
connection with equities trading and clearing and settlement
services in Canada.” While Maple and TMX said at the time that they would work
with the Competition Bureau and identify possible “remedial
measures,” Maple’s Luc Bertrand said on Dec. 1 that removing
the clearinghouse or the bank-owned trading platform from its
takeover proposal would be a deal breaker. If the Maple deal collapses, it will be the fifth time in
less than a year that an exchange takeover failed after the
biggest wave of industry consolidation led to almost $40 billion
in announced acquisitions. In April, Australia’s government
scuttled Singapore Exchange Ltd.’s bid for Sydney-based ASX Ltd. Regulatory Hurdles Nasdaq OMX Group Inc. (NDAQ) of New York and
IntercontinentalExchange Inc. in Atlanta dropped their hostile
offer for NYSE Euronext in May after U.S. regulators signaled
they would block it. A month later, LSE’s deal for TMX crumbled. On Feb. 1, European Union regulators vetoed Frankfurt-based
Deutsche Boerse ’s takeover of NYSE Euronext of New York to
create the world’s biggest exchange after concluding that the
$9.5 billion acquisition would hurt competition and lead to a
“near-monopoly” in the region’s exchange-traded derivatives. The Maple bid “would be very unlikely to be approved in
either in Europe or the United States ,” Edward Ditmire , a New
York-based analyst at Macquarie Group Ltd., said in a telephone
interview. “It’s extremely speculative.” Sachin Shah, a Jersey City , New Jersey-based merger
arbitrage strategist at Tullett Prebon Plc, says investors are
underestimating the possibility that regulators and Maple will
agree to conditions that mitigate antitrust concerns and still
allow the group to keep its trading and clearing businesses. Maple said last week that it and TMX have proposed a
pricing model for its clearing business, as well as remedies to
address concerns on equities trading to regulators. Flightless Existence “A lot of the conditions will have this hands-off
policy,” Shah said in a telephone interview. “The chances are
very high that a deal gets approved.” Traders who purchase TMX shares now stand to almost triple
their profit on an annualized basis if the deal closes by the
end of March, according to data compiled by Bloomberg. Without
taking into account when the transaction would be completed, the
arbitrage profit is 17 percent, the data show. Will Harrington, a New York-based merger arbitrage analyst
at Wall Street Access, says Maple is unlikely to win approval,
especially after exchanges from New York to Frankfurt and
Singapore were prevented from merging with other venues because
of antitrust or national interest objections from regulators. “It could go the way of the dodo,” he said in a telephone
interview, referring to the flightless bird in Mauritius that
was driven to extinction in the late 17th century. “It feels
like all the exchange deals right now are dead in the water.” To contact the reporters on this story:
Sean B. Pasternak in Toronto at
spasternak@bloomberg.net ;
Charles Mead in New York at
cmead11@bloomberg.net . To contact the editors responsible for this story:
Daniel Hauck at dhauck1@bloomberg.net ;
David Scanlan at dscanlan@bloomberg.net . | 2012 | nobody-wants-tmx-with-198-return-on-maple-bid-real-m-a |
Start of Nascar’s Daytona 500 Delayed After Rain Soaks Florida Race Track | By Dex McLuskey | 2012-02-26T18:38:12Z | http://www.bloomberg.com/news/2012-02-26/start-of-nascar-s-daytona-500-may-be-delayed-after-rain-soaks-florida-oval.html | 2 | 26 | 64ae212e50a13332894a6513b26539e892d68be5 | The start of the 54th Daytona 500
has been delayed because of rain. Nascar’s season-opening race at the Daytona International
Speedway in Daytona Beach , Florida , was scheduled to begin at
1:29 p.m. local time with Carl Edwards in pole position and his
Roush Fenway Racing teammate Greg Biffle alongside him on the
front row. Danica Patrick is 29th on the grid in her first visit to
the “Great American Race.” Trevor Bayne, who won last year at
his first attempt a day after his 20th birthday to become the
youngest champion, starts in 40th place. Organizers didn’t provide a rescheduled start time for the
race, which has never been pushed back a day because of weather,
although it was shortened because of rain in 1965, 1966, 2003
and 2009. The race will go ahead after nightfall if necessary, the
Orlando Sentinel reported, citing Joie Chitwood, president of
Daytona International Speedway. “We’re prepared to turn on the lights if we have to,” the
Sentinel cited Chitwood as saying. Intermittent rain is scheduled in the area throughout today
with more showers tomorrow, according to Accuweather.com . To contact the reporter on this story:
Dex McLuskey in Dallas at
dmcluskey@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at msillup@bloomberg.net . | 2012 | start-of-nascar-s-daytona-500-may-be-delayed-after-rain-soaks-florida-ova |
Mobile Operators Turn to Merger Lite as Watchdogs Stop Deals | By Marie Mawad | 2012-02-27T09:10:34Z | http://www.bloomberg.com/news/2012-02-26/wireless-operators-turn-to-merger-lite-as-watchdogs-deter-deals.html
Phone-company executives gathering
at the Mobile World Congress in Barcelona this week will be
looking for network-sharing deals to divvy up the costs of high-
speed systems for bandwidth-hogging video and gaming services. As data-hungry devices are unveiled at the industry’s
biggest annual event, France Telecom SA (FTE) , Vodafone Group Plc (VOD) and
Deutsche Telekom AG (DTE) are among operators pushing agreements in
markets hurt by the European debt crisis | 2 | 26 | c276b01102cc4c32bb91cf1217de58cf | networks. The move is also one way to stem falling revenue and
meet state-imposed coverage requirements. The unraveling of takeovers and mergers in the past two
months, including a sale of T-Mobile USA and a combination of
Vodafone’s Greek assets with a rival, highlight the need for
European carriers to find ways to boost profitability as
regulators from Washington to Brussels balk at consolidation.
Spending by the region’s operators will shrink by a percentage
point this year and next, falling to 14 percent of average sales
in 2013, according to Fitch Ratings estimates. “You’ve got a worsening macroeconomic picture and
regulation which is not allowing badly needed consolidation,”
said Michael Dunning, a London-based managing director at Fitch.
“You at least want something like what Orange and T-Mobile have
done in the U.K.” ‘Light’ Consolidation France Telecom merged its Orange network in the U.K. with
Deutsche Telekom’s T-Mobile in 2010, creating Everything
Everywhere in a bid to save more than a total of 4 billion euros
($5.4 billion) in network, marketing and administrative costs by
2014. That deal, cutting the number of network operators in the
country from five to four, paved the way for joint procurement
projects and network sharing across all their markets. “Network sharing is really a light form of industry
consolidation,” said Dee Burger, who heads Paris-based
consulting firm Cap Gemini (CAP) ’s telecommunications division, which
advises companies including France Telecom, Deutsche Telekom and
Telefonica SA. (TEF) France Telecom, whose CEO Stephane Richard is among
executives attending the Barcelona congress, spent 5.8 billion
euros last year on capital expenditure. The company is looking
to go deeper into sharing networks and is seeking partners in
new countries, Christian Luginbuhl, who heads network
performance in Europe , said in an interview. Rural Sharing This month, France Telecom said it’s teaming up with
Deutsche Telekom again, through T-Mobile in Poland, to share
networks and prepare them for an upgrade to a fourth-generation
network. At home, France Telecom shares mobile sites in rural
areas with SFR, a Vivendi SA unit, and with Bouygues SA. (EN) Total cost per site can be cut by 20 percent to 40 percent
depending on the depth of the sharing, Luginbuhl said. Phone
companies can share anything from towers and base stations to
’smart’ equipment like antennas or bits into the core of their
networks, he said. By sharing networks, operators can lower operating expenses
by between 30 percent and 35 percent, said Joachim Horn, chief
technology officer of Tele2 AB. (TEL2B) Sweden’s second- largest
wireless provider shares its 6,000 3G cell sites with
TeliaSonera AB (TLSN) and its 4G network with Norway’s Telenor ASA. (TEL) The average European operator will spend about 2 billion
euros to upgrade an existing network to 4G technology to cover
75 percent of a country with 50 million people, said Frederic
Pujol, an analyst at researcher Idate. Spending would be three
times more expensive for an operator starting from scratch, he
said. Greek Fallout Operators are also choosing to share networks in countries
where they can’t merge. Vodafone this month abandoned months of
negotiations with Wind Hellas Telecommunications SA to combine
their Greek networks because of opposition from the European
Commission, a person with knowledge of the matter said at the
time. The companies will instead explore sharing infrastructure. In December, AT&T (T) and Deutsche Telekom abandoned the $39
billion proposed sale of T-Mobile USA to the U.S. carrier amid
opposition from the Federal Communications Commission and the
Justice Department. With mergers falling apart and extra investments needed for
the roll-out of new 4G technology, carriers are looking for
solutions to cope with stalling network budgets. They are likely
to reshuffle spending from older technologies to the long-term
evolution fourth-generation standard. ‘Aggressive Rollout’ “Everywhere 4G is getting an aggressive rollout, that is
where you’re seeing more of this sharing talk,” John-Paul
Hemingway, vice president of strategic development at gear maker
Ciena Corp (CIEN) , said in an interview. Ian Miller, Telefonica’s director for radio access
networks, said in Barcelona that the company is considering
sharing LTE infrastructure with other operators where it doesn’t
get enough spectrum, be it in Europe or Latin America . For France Telecom , which is refocusing business on
emerging markets , the next sharing deal is set to come from
Africa, where low purchasing power and fierce competition among
foreign players keen on grabbing market share have pushed down
tariffs. African Deal? “Our strategy is to share more towers in emerging
markets,” Elie Girard, executive vice president for strategy
and development at France Telecom, said in an interview.
“Pressure on operational performance is very tough, especially
in Africa. Site sharing is one of the ways we can bring our cost
structure down significantly.” France Telecom, which operates in 20 countries in Africa
and the Middle-East, is finalizing a sharing deal of telecom
masts and towers in one African country. The operator will seek
to replicate this type of deal on the continent, Girard said. France’s former phone monopoly entered Morocco, Iraq and
the Democratic Republic of Congo in the past two years, as part
of its efforts to refocus its business on emerging markets. Russia, the first emerging market of its size to mature in
terms of mobile penetration, has also seen its local operators
extend their sharing as they seek to become more efficient. OAO Mobile Telesystems (MTSS) , the country’s largest mobile-phone
operator, and peers OAO VimpelCom (VIP) and OAO MegaFon (MFON) have been
sharing mobile towers in eastern Russia for some years. Mobile
Telesystems now expects to trade off fiber capacity with its
competitors as broadband usage grows, spokesman Joshua Tulgan
said. The three big private operators anticipate being able to
bid for 4G licenses in the next few months. Tulgan says there’s
also likely to be some infrastructure sharing with state-owned
fixed-line operator Rostelecom. (RTKM) “For any country, rural areas are typically the first
shared,” said Kai Sahala, head of strategic solutions at Nokia (NOK1V)
Siemens (SIE) Networks, the network equipment venture between Nokia
Oyj and Siemens AG. To contact the reporter on this story:
Marie Mawad in Barcelona via
mmawad1@bloomberg.net To contact the editor responsible for this story:
Kenneth Wong at
kwong11@bloomberg.net | 2012 | wireless-operators-turn-to-merger-lite-as-watchdogs-deter-deals |
Pakistan Demolishes Bin Laden’s Islamabad Hideout Raided by U.S. Commandos | By Anwar Shakir and Haris Anwar | 2012-02-26T16:59:15Z | http://www.bloomberg.com/news/2012-02-26/bin-laden-s-compound-being-razed-as-pakistan-seeks-to-erase-painful-symbol.html | 2 | 26 | 9fa3545e9f205bd976793060771b8b3fc253c89a | Pakistani authorities demolished
most of the hideout north of Islamabad where U.S. Navy commandos
killed Osama bin Laden in May, according to a resident of the
neighborhood and video footage shown on Pakistani TV channels. Pakistani security forces sealed off the area around the
compound, in the army garrison town of Abbottabad, about 50
kilometers (30 miles) north of the capital. Crews with
excavators and other heavy machinery toppled the concrete
perimeter wall and began tearing down the three-story house in
which Bin Laden was shot dead on the top floor, said Altaf Khan,
whose home is about 200 meters (219 yards) from the compound. Almost 10 months after Bin Laden’s death, the army’s
failure to detect Bin Laden or the U.S. attack deep inside
Pakistani territory remains an embarrassment, said Rashid Khan ,
a professor of international relations at the University of
Sargodha in central Pakistan. “The military probably wants to
remove this symbol of their humiliation and the most glaring
example of their intelligence failure,” he said in a phone
interview. “If it was allowed to remain intact, it would have
continued to attract media attention, which isn’t something the
local authorities can handle,” he said. Staff members at Pakistan’s army press office declined to
respond to questions about the demolition, and the office of
Prime Minister Yousuf Raza Gilani didn’t return phone calls
seeking comment. Pakistani Investigation A four-member commission named by Gilani is investigating
why the army failed to detect bin Laden’s presence or prevent
the U.S. attack. U.S.-Pakistani relations remain strained because of the
raid and the accusations that followed between officials of the
two governments. American officials, including the then-chairman
of the Joint Chiefs of Staff, Admiral Mike Mullen, accused
Pakistan ’s army of keeping contacts with violent Islamic
militant groups such as Afghanistan ’s Taliban movement, which is
fighting U.S.-led troops in neighboring Afghanistan. Ties between the countries suffered a further setback when
U.S. helicopters killed 26 Pakistani troops on Nov. 25 near the
border with Afghanistan. Pakistan retaliated by closing supply
routes for NATO troops in Afghanistan. Reinforcement In Abbottabad, the security forces and demolition crew
began destroying bin Laden’s 1.5-acre compound yesterday
evening, working through the night under bright lights, said
Khan. The compound had dwarfed the nearby houses, its perimeter
walls, of unpainted concrete streaked with black mold, rising as
high as 3.3 meters (11 feet). “I saw today that the destruction of the boundary walls
was complete and now they are working on the main building,”
Khan said in a phone interview. The main building was about three-quarters destroyed by
this evening, television footage showed. The demolition is complicated by the compound’s military-
style construction, notably its heavy use of steel reinforcement
rods in the compound’s walls, said Gauhar Ali, an Abbottabad
civil engineer who last year inspected the structure. To contact the reporters on this story:
Anwar Shakir in Peshawar at
ashakir1@bloomberg.net ;
Haris Anwar in Islamabad at
hanwar2@bloomberg.net To contact the editor responsible for this story:
Peter Hirschberg at
phirschberg@bloomberg.net | 2012 | bin-laden-s-compound-being-razed-as-pakistan-seeks-to-erase-painful-symbo |
Senegal’s Wade May Win a Third Term Amid Deadly Protests Against His Rule | By Rose Skelton | 2012-02-26T10:24:34Z | http://www.bloomberg.com/news/2012-02-26/senegal-s-wade-may-win-a-third-term-amid-deadly-protests-against-his-rule.html | 2 | 26 | 777d3df55f3b4b51877c83e2efd0f77f | Voting began today in Senegal’s
presidential election, with incumbent Abdoulaye Wade vying for a
third term after violent protests that threaten to damage the
second-biggest economy in West Africa’s currency union. The 85-year-old leader, Africa’s oldest after Zimbabwe ’s
Robert Mugabe , faces 13 candidates following a Jan. 27 ruling by
the Constitutional Court that term limits don’t apply to him.
Voting started at 8 a.m. Dakar time and ends at 6 p.m.,
according to the country’s electoral commission, which has until
March 2 to hand results to the court. A second round will be
held next month if no one wins 50 percent. Senegal’s five decades of transition from a French colony
to a democratic state of 13.8 million people earned it plaudits
and aid from the U.S., Europe and the World Bank . Over the past
year, human-rights activists, opposition politicians and
protesters have been beaten and jailed and demonstrations have
been banned, according to U.K.-based Amnesty International . Wade “is the most likely victor in a second round run-
off,” said Jonathan Hyman, Africa analyst at the London-based
Economist Intelligence Unit. “With his prospective third term
given legal legitimacy, he has no need to heed vocal domestic
and international pressure to step aside.” Demonstrations against Wade’s bid to extend his 12 years in
power have left at least nine people dead and dozens injured
since the court decision. Wade argued a change to the
constitution that limited presidential tenures to two didn’t
apply because it was enacted after he came to office. ‘Potentially Volatile’ The situation is “potentially volatile and maybe
international investors seem to be of a similar view as they
tend to be underweight” on Senegal ’s $500 million Eurobonds,
said Stuart Culverhouse , chief economist at London-based
investment bank Exotix Ltd. Still, the yield on the debt due in
2021 has fallen to the lowest since Nov. 14, retreating 7.4
basis points to 8.693 percent late on Feb. 24, according to data
compiled by Bloomberg. That is in step with other African bonds. Ghana ’s $750
million debt due in 2017 traded at 6.146 percent, the lowest
since Sept. 13, while Nigeria ’s $500 million notes due 2021
declined to 5.741 percent, the lowest since Aug. 4. Growth, forecast at 4.5 percent this year by the
International Monetary Fund , may slow, Hyman said in an emailed
response to questions. “If events somehow turn into a full-
scale revolution, then investment would dry up, there would be
supply shocks and the political scene would become uncertain,”
he said. Incumbent’s Advantage The electoral-affairs ministry is led by a member of Wade’s
ruling Parti Democratique Senegalaise. The vote results are
approved by the same court that endorsed Wade’s candidacy and it
is headed by a supporter of Wade, according to James Clinton Francis, a sub-Saharan Africa researcher with Eurasia Group Ltd. “Wade’s incumbency gives him a considerable advantage in
terms of access to resources and influence over the electoral
process,” said Anna Osborne, senior analyst at Bath, U.K.-based
Maplecroft , a risk-analysis company. “This includes his hold
over the Constitutional Court in the event of an opposition
appeal,” she said in an e-mailed response to questions Feb. 14. The president also holds sway over religious leaders known
as marabouts, according to his spokesman, Serigne Mbacke Ndiaye.
“The spiritual powers and the governing powers always go
together,” Ndiaye said by phone Feb. 6. Democratic History Opposition groups have called on Wade to withdraw from the
race. “We believe that if he runs as a candidate, he will
publish results favorable to himself,” El Hadji Diouf,
spokesman for candidate Idrissa Seck’s Rewmi party, said by
phone Feb. 20. Former prime ministers Seck and Macky Sall are likely to
face Wade in a runoff, said Abdou Fall, Senegal analyst at the
Institute for Security Studies in Pretoria . Senegal became independent from France in 1960 and is the
only country in mainland West Africa never to have experienced a
military coup. Wade defeated incumbent Abdou Diouf, who had
ruled Senegal for 19 years, in elections in 2000. Diouf succeeded the country’s first president, Leopold Senghor, a poet who served in France’s parliament before
independence. He was a founder of the so-called negritude
literary and ideological movement that rejected colonialism and
promoted the self-affirmation of blacks and Africans. Ivory Coast Wade’s son, Karim, was appointed minister for energy,
international cooperation, regional development, air transport
and infrastructure following his defeat in 2009 in a race for
mayor of Dakar. He also oversaw Senegal’s hosting of the 2008
Organization of the Islamic Conference, which came under
question by politicians including Sall, 50. “I came here today to do my duty as a citizen,” Assane
Samb, 37, a taxi driver , said in Dakar. “It’s going well for the moment, it’s well organised
here,” Mamadou Diakhate, 20, a bricklayer, said in Dakar. “I
think that Wade will win today.” In the West African union’s biggest economy, Ivory Coast , a
disputed presidential election in November 2010 led to five
months of violent clashes and an economic contraction of 5.8
percent, according to the IMF. The country also defaulted on its
$2.3 billion Eurobonds after missing a coupon payment. “There will be post-electoral violence and instability
whatever the results, but it won’t last for a long time,” Fall,
at the Institute for Security Studies, said by phone on Feb. 16. Religious Leaders “The religious leaders in Touba and Tivaouane will call
for calm,” he said, referring to the country’s two main
religious cities. “Whatever the outcome, Wade will still be in
power.” Alassane Ouattara , who won the Ivorian vote, was supported
by a rebel movement in the country’s north that had its roots in
a 2002 army mutiny. Senegal doesn’t have a similar militia and
is likely to adhere to any calls for peace by influential
religious leaders in a country where 94 percent of the
population practices Islam, Culverhouse said. “I don’t think people are expecting a Cote d’Ivoire
situation and we’ve never seen that before in Senegal’s
independence history,” he said by phone Feb. 20. “But the
opposition are now more vocal and seemingly against this family
dynasty than previous, so maybe we’re in uncharted territory.” To contact the reporter on this story:
Rose Skelton in Dakar at
rskelton7@bloomberg.net To contact the editor responsible for this story:
Antony Sguazzin at
asguazzin@bloomberg.net | 2012 | senegal-s-wade-may-win-a-third-term-amid-deadly-protests-against-his-rule |
Ex-Rolls-Royce CEO Joins Hakluyt Board, Sunday Telegraph Says | By Andrea Gerlin | 2012-02-26T10:55:14Z | http://www.bloomberg.com/news/2012-02-26/ex-rolls-royce-ceo-joins-hakluyt-board-sunday-telegraph-says.html | 2 | 26 | b5e18bdcfcced2303b9371f411a34fac6f37f055 | Former Rolls-Royce Holdings Plc
Chief Executive Officer John Rose joined the board of Hakluyt &
Co., the Sunday Telegraph reported, without saying where it got
the information. Rose became a non-executive director of Hakluyt’s holding
company Holdingham Group, according to the newspaper. Hakluyt is
a business intelligence company started by former officers from
the U.K.’s MI6 security agency, the Telegraph said. To contact the reporter responsible for this story:
Andrea Gerlin in London at
agerlin@bloomberg.net To contact the editor responsible for this story:
Mike Harrison at
mharrison5@bloomberg.net | 2012 | ex-rolls-royce-ceo-joins-hakluyt-board-sunday-telegraph-says |
Europe Focus Shifts to Debt-Crisis Firewall | By Patrick Donahue | 2012-02-27T09:48:41Z | http://www.bloomberg.com/news/2012-02-26/european-focus-shifts-to-debt-crisis-firewall-ahead-of-summit.html
European leaders will shift their
focus this week from a Greek bailout to the prospect of
bolstering the region’s firewall against debt-crisis contagion
as they ready for their latest summit. After lawmakers in Germany and Finland vote on approving
the second Greek rescue package today and Feb. 29, European
Union heads of government will turn to their March 1-2 summit in
Brussels. Leaders of the 17-member monetary union have said
they’ll decide in March whether to lift a 500 billion-euro ($672
billion) limit to bailout funding. As the European Central Bank prepares a second round of
cash lending to help shore up the region’s banks, policy makers
are focused on preventing a Greek collapse in order to take
advantage of signs of an improved global economy. The latest Greek bailout “gives the opportunity of euro-
zone leaders to put a better, more organized and larger firewall
in place,” William Rhodes , chief executive officer of William
R. Rhodes Global Advisors, said in a Feb. 24 interview on
Bloomberg Radio’s “The Hays Advantage.” Chancellor Angela Merkel ’s government has resisted
proposals to increase bailout funding by topping up the 500-
billion-euro European Stability Mechanism, the permanent fund
scheduled to be set up this year. Euro leaders are considering
diverting funds from the temporary bailout mechanism, the
European Financial Stability Facility, to increase the region’s
resources in fighting the crisis. G-20 Rebuff German Finance Minister Wolfgang Schaeuble rejected calls
to make rescue funds “ever bigger.” In a Feb. 24 op-ed in
Mexican newspaper El Universal, he said that Germany’s response
to such calls was an “emphatic no.” The resistance created an
impasse as Germany tried to rally Group of 20 nations to find
fresh money for the International Monetary Fund to help defuse
the crisis at a meeting in Mexico City over the weekend. G-20 nations, led by the U.S., isolated Germany and refused
to come to Europe ’s rescue, saying any decision on outside help
will hinge on euro governments delivering more financial
firepower. A European review of its resources is “essential”
before considering boosting IMF funding, the G-20 said. Stocks and the euro fell. The Stoxx Europe 600 Index
retreated 0.9 percent as of 9:33 a.m. in London . The euro
declined 0.2 percent to $1.3427. German Position Merkel spokesman Steffen Seibert said Feb. 25 there was no
change in the German position that there’s no need to raise the
funding limit, rebutting a report in Germany’s Focus magazine.
Focus had said Merkel’s government was prepared to concede and
allow 250 billion euros in additional funding from the remaining
volume of the EFSF. Euro leaders will also try to steer focus toward assisting
economic growth, fending off criticism that the answer to the
debt crisis has rested too much on austerity. Merkel and
Luxembourg Prime Minister Jean-Claude Juncker said on Feb. 24
that leaders will seek growth through changes in labor-market
policies and scaling back bureaucracy. “It’s clear that things in Greece | 2 | 26 | 4f9488d0f6874f388152e4c413545d8f | there aren’t also growth impulses,” Juncker said alongside
Merkel in the chancellor’s constituency on the Baltic Sea . ECB Loans The ECB’s issuance of three-year cash to banks has been
credited with easing credit pressure on banks, giving euro
leaders more room to maneuver. Euro-area banks may tap the
Frankfurt-based central bank for 470 billion euros on Feb. 29,
almost as much funding as they took in December, according to a
the median of 28 estimates in a Bloomberg News survey. That earlier operation helped a rally in bond markets,
which continued last week. Italy ’s 10-year bonds rose for a
seventh week, the longest run of gains in the euro-era, with the
yield down nine basis points to 5.49 as of Feb. 24. Spanish 10-
year yields dropped 21 basis points last week to 5.05 percent. The success of European leaders will determine whether the
economic chaos in Greece spreads to the larger countries. “The real big issue going forward will be the success of
Spain and Italy,” World Bank President Robert Zoellick said in
a Bloomberg television interview in Singapore Feb. 25. “The
good news is we’ve got some very reformist governments in both
countries. They are not only undertaking fiscal discipline but
they have started undertaking structural reforms.” This week’s activities will begin with Merkel today
addressing German lawmakers in the lower house of parliament, or
Bundestag, at 3 p.m. Berlin time before a vote on approving the
Greek package. Schaeuble and other government officials have
predicted a majority, as the opposition Social Democratic Party
has signaled it will support the measure. Volker Kauder , the parliamentary leader of Merkel’s
Christian Democratic-led bloc, reiterated that Germany doesn’t
want to force Greece out of the euro area. “We want to keep Greece in the euro zone,” Kauder said in
an interview with ARD television yesterday. Trying to make the
country leave would be the “wrong signal.” To contact the reporter on this story:
Patrick Donahue in Berlin at
pdonahue1@bloomberg.net To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net | 2012 | european-focus-shifts-to-debt-crisis-firewall-ahead-of-summi |
Egypt-U.S. Talks Said to Seek End to Prosecution of Detained Aid Workers | By Nicole Gaouette | 2012-02-26T01:01:15Z | http://www.bloomberg.com/news/2012-02-26/egypt-u-s-talks-said-to-seek-end-to-prosecution-of-detained-aid-workers.html | 2 | 26 | 91671db6fd165d54e7b15d3aaf27c5d7329d0037 | The U.S. is engaged in intense talks
with Egypt to resolve legal charges against Americans working
for pro-democracy groups in the country, an administration
official familiar with the discussions said. The Obama administration hopes to resolve the case against
the Americans, including Sam LaHood, the son of Transportation
Secretary Ray LaHood, within days, according to the official,
who spoke to reporters on condition of anonymity because of the
sensitivity of the issue. Secretary of State Hillary Clinton , who is visiting Algeria
after an international meeting in Tunisia on how to counter the
violence in Syria , has raised the issue twice in the last three
days with her Egyptian counterpart, the official said. Egypt has charged 16 Americans and 27 others working for
four democracy promotion groups, including two linked to U.S.
congressional leaders and to the Democratic and Republican
parties, with operating without a license and accepting foreign
funds. A fifth group, the Konrad Adenauer Foundation, is based
in Germany . Among other efforts, they have been assisting
Egyptian democracy activists with voter registration and
electoral reform efforts. Seven of the Americans remain in Egypt and have been
staying on the grounds of the U.S. Embassy in Cairo since the
charges were filed and they were barred from leaving the
country. At stake in addition to $1.3 billion in annual U.S. aid to
Egypt is the three-way peace agreement among the U.S., Egypt and
Israel that’s been a cornerstone of Arab-Israeli relations since
the 1978 Camp David peace accords. Arab Spring In addition, the case could influence the direction Egypt
takes in the aftermath of last year’s Arab Spring uprisings that
toppled pro-Western President Hosni Mubarak and other
authoritarian rulers in Tunisia and Libya and now threaten
Syrian President Bashar al-Assad. Political power in Egypt still resides primarily with the
country’s military leaders, the beneficiaries of much of the
U.S. aid, although the Muslim Brotherhood and other Islamist
groups have been the victors in recent parliamentary elections. Some U.S. lawmakers, including Republican Senator John McCain of Arizona, have said the charges are politically
motivated and called for a halt to U.S. aid if the case isn’t
resolved. This year, for the first time, the Obama
administration must certify to Congress that Egypt is making
progress in developing democracy before aid can be released. To contact the reporter on this story:
Nicole Gaouette in Rabat at
ngaouette@bloomberg.net To contact the editor responsible for this story:
John Walcott at
jwalcott9@bloomberg.net | 2012 | egypt-u-s-talks-said-to-seek-end-to-prosecution-of-detained-aid-workers |
Japan’s Noda Pays First Visit to Okinawa to Discuss U.S. Base | By Naoko Fujimura | 2012-02-26T03:47:42Z | http://www.bloomberg.com/news/2012-02-26/japan-s-noda-pays-first-visit-to-okinawa-to-discuss-u-s-base.html | 2 | 26 | 4834469b15e4dfaf7f617eae46599633753fe419 | Japanese Prime Minister Yoshihiko Noda travels to Okinawa today, his first visit as the nation’s
leader, to discuss a dispute over relocating a U.S. military
base. Noda’s two-day trip includes a planned meeting with
Governor Hirokazu Nakaima to discuss ways of reducing Okinawa’s
financial burden and spurring its economy, Chief Cabinet
Secretary Osamu Fujimura said Feb. 24. Japan earlier this month
agreed to the shift of thousands of U.S. troops to Guam from
Okinawa, which hosts the bulk of the American military presence
in Japan. Noda, in office since September, has been no more
successful than his predecessors in persuading locals to accept
relocating the Marine Corps Air Station Futenma to Camp Schwab,
near the town of Henoko. Citing crime and pollution, residents
have repeatedly demanded it be moved elsewhere. The dispute led to the 2010 resignation of Prime Minister
Yukio Hatoyama after he submitted to U.S. pressure to confirm
the move. Noda was forced to replace his defense minister after
a ministry official was fired for comparing the relocation to
rape, evoking memories of a 1995 sexual assault on an Okinawan
schoolgirl by three American soldiers. Realignment The Feb. 8 agreement separates the troop shift from the
base issue. The U.S. and Japan have “agreed to delink the
movement of Marines to Guam” from progress on replacing
Futenma, George Little , a Pentagon spokesman, said on the day in
an e-mailed statement. Both countries are continuing discussions on the next steps
and ways to “mitigate the impact of the Marine presence on the
Okinawan people,” Little wrote. “It’s premature to discuss
troop numbers or specific locations associated with the
relocation of Marines from Okinawa,” until negotiations between
U.S. and Japan are complete, he said. Guam will continue to be developed as a “strategic hub
with an operational Marine Corps presence,” Little said. As part of a 2006 agreement with Japan, 8,000 Marines and
9,000 dependents were to be transferred from Okinawa almost
1,500 miles (2,414 kilometers) south to Guam by 2014. Japan spends about 188 billion yen ($2.3 billion) a year to
host 38,000 American military personnel and 43,000 dependents as
part of a 52-year security treaty. More than 75 percent of the
bases are on Okinawa, about 950 miles south of Tokyo . To contact the reporter on this story:
Naoko Fujimura in Tokyo at
nfujimura@bloomberg.net To contact the editor responsible for this story:
Paul Tighe at
ptighe@bloomberg.net | 2012 | japan-s-noda-pays-first-visit-to-okinawa-to-discuss-u-s-base |
Orascom Construction, Arabtec Bid for Tahrir Project, Mal Says | By Ahmed A. Namatalla | 2012-02-26T10:36:23Z | http://www.bloomberg.com/news/2012-02-26/orascom-construction-arabtec-bid-for-tahrir-project-mal-says.html | 2 | 26 | 11fc30e93cca0967509020107ad11c5a74029cea | Groups led by Orascom Construction
Industries (OCIC) and Arabtec Holding Co. (ARTC) are competing with two others
to build a hotel near central Cairo’s Tahrir Square, Al Mal
reported today. The winning team is expected to be announced in April, the
Cairo-based newspaper said, citing Waleed Abdel Fatah, vice
president of Hill International Middle East, a project
management company. To contact the reporter on this story:
Ahmed A Namatalla in Cairo at
anamatalla@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | orascom-construction-arabtec-bid-for-tahrir-project-mal-says |
Gillard Seen Prevailing Over Rudd in Australia’s Labor Leadership Ballot | By Jason Scott and Michael Heath | 2012-02-26T21:44:02Z | http://www.bloomberg.com/news/2012-02-26/gillard-favored-over-rudd-in-australian-labor-leadership-ballot.html | 2 | 26 | 71201141ba944c398c945ce82db30bdb | Australian Prime Minister Julia Gillard and predecessor Kevin Rudd face off in a leadership
contest today, with the victor needing to revive the Labor
party’s lagging ratings before elections due in 2013. Gillard is the favorite to win the ballot of Labor
lawmakers at 10 a.m. local time in the nation’s capital,
Canberra, with a tally of voting intentions compiled by the
Australian and Age newspapers showing the prime minister with a
2-to-1 margin. Rudd, who resigned as foreign minister last week
as he sought to reclaim the nation’s top job, vowed yesterday
that Gillard would have his “unequivocal support” should she
prevail. “All the indications show Gillard should win
comfortably,” said Zareh Ghazarian, a political analyst at
Melbourne’s Monash University . “After the ballot, she’ll be
looking to get some traction with voters in getting her message
across and try to turn the polls around.” After weeks of political infighting, whoever wins needs to
rebuild public support as the government tries to implement
unprecedented taxes on mining profits and carbon emissions that
the Liberal-National opposition says it would scrap. The prime
minister must hold together a minority government that relies on
the support of independent and Green party lawmakers, while
narrowing the opposition’s double-digit lead in opinion polls. Snap Election Tensions have simmered within the party since Gillard
toppled Rudd in a June 2010 party-room coup amid complaints
about the autocratic style of his 2007-2010 prime ministership
and concern over his slumping poll ratings. Gillard cobbled together a minority government after the
closest election in seven decades in August 2010. Any collapse
in that arrangement risks triggering another national vote
before 2013 that opinion surveys indicate the conservatives
would win. The Labor party ’s primary vote of 35 percent trails
opposition leader Tony Abbott ’s coalition by 10 percentage
points, according to a Newspoll published in the Australian
today. The survey of 1,152 people conducted Feb. 23-26 had a
margin of error of plus or minus 3 percentage points. Abbott, 54, a volunteer lifeguard who once studied for the
priesthood, says his coalition is ready for an election and
presents a “stable and united team.” He hasn’t ruled out
calling a no-confidence vote among lawmakers in the lower house
of parliament that could trigger an early election if
successful. “I think for Australia ’s sake, this government should
go,” Abbott told reporters yesterday. Ministerial Lineup If Gillard wins today, one of her first tasks will be to
consider whether her ministerial lineup needs its second
overhaul in three months. She would have to select a replacement
for Rudd as foreign minister and may choose to sideline Cabinet
colleagues who declared they would vote against her in the
ballot, such as Resources Minister Martin Ferguson and Kim Carr ,
minister for manufacturing. Rudd, 54, defended his decision to contest the ballot,
saying the party needed to choose a “new leadership course,
which has some prospect of saving the Australian Labor
government from electoral annihilation.” “Sometimes you’ve got to take a stand, even though you
think it’s going to be really tough,” he said in an interview
with Channel 7 television today. “I’m resting very calm in my
skin this morning.” Rudd has promised not to mount a second challenge to
Gillard if she wins. He may find a way out of that pledge should
she fall further behind in polling later this year, according to
Nick Economou , a political analyst at Melbourne ’s Monash
University. ‘Lightning Rod’ “Rudd is a lightning rod for dissatisfied Labor members,
of which there’ll probably be a growing number as the year goes
on,” said Economou, co-author of “Media, Power and Politics in
Australia.” “The fundamental problem is she’s on track for
election defeat, and as long as that’s the case, there’s always
a big possibility of a challenge to her leadership.” The victor’s efforts to boost Labor’s poll ratings may be
hampered by an economy that recorded its worst annual job growth
in 19 years in 2011, when house prices slumped by a record 4.8
percent. While the biggest mining boom in a century is helping the
economy sustain a two-decade long expansion, a currency that has
gained 23 percent since Gillard took office in June 2010 is
hurting manufacturing. The local dollar bought $1.0703 at 7:57
a.m. in Sydney today, after reaching $1.1081 on July 27, the
highest level since it was freely floated in 1983. BlueScope Steel Ltd. (BSL) , the country’s largest steel producer,
in August closed its export division. Toyota Motor Corp. (7203) and
General Motors Co. have cut jobs in Australia this year, citing
the currency’s strength, while Alcoa Inc. (AA) is reviewing the
future of an aluminum smelter. ‘Slow Lane’ “A big chunk of the Labor voting base is in the slow lane
of Australia’s two-speed economy,” said Shane Oliver , Sydney-
based head of investment strategy at AMP Capital Investors Ltd.,
which has $100 billion under management. “Australia has to make
the adjustment related to the strength in the mining sector, and
trying to resist that is futile, but it’s a difficult balancing
act for the government and whoever wins the ballot.” The job market has shown signs of revival this year as
employers added the most workers in 14 months in January and the
unemployment rate unexpectedly declined to 5.1 percent, compared
with the 7.9 percent average for advanced economies last year. Interest Rates The Reserve Bank of Australia kept its benchmark interest
rate at 4.25 percent on Feb. 7, the highest among major
developed nations, after lowering borrowing costs by a quarter
percentage point twice late last year. The central bank is likely to cut rates once more as risks
to global growth remain, said Paul Bloxham, chief economist for
HSBC Holdings Plc in Sydney and a former RBA official who
predicts the economy will then accelerate next year. “The
challenge for the government is that the next election is likely
to occur in 2013 and it’s quite possible we’ll be in an
environment where interest rates are rising.” As parliament resumes in Canberra today, a Gillard
government would aim to implement taxes on carbon emissions and
resources profits as it strives to return the budget to surplus
by 2012-13. Under a law coming into effect on July 1, the government
will charge about 500 polluters A$23 a ton for discharges until
the set price gives way to a cap-and-trade system in 2015. A 30
percent tax on iron ore and coal profits is forecast to raise
A$7.7 billion in the first two years. The mining tax bill is
expected to be approved in the upper house where the government
has the support of Greens, who hold the balance of power. Narrowing the Gap Today’s Newspoll shows Labor narrowing the gap with the
coalition in the primary vote, cutting four percentage points
from the 14-point margin in the previous poll on Feb. 10-12. Its
35 percent support in the primary vote was the highest in almost
a year, Newspoll data shows. Gillard, with 36 percent, trails
Abbott, on 38 percent, as preferred prime minister. Australian bookmaker Sportsbet.com.au, which says it’s the
nation’s largest online betting agency by revenue, is offering
to return A$1.03 on every A$1 bet that Gillard will win the
leadership contest. It will pay A$10 for Rudd. One better has
wagered A$300,000 on a Gillard victory, Haydn Lane, a spokesman
for sportsbet.com.au, said in an e-mailed statement. “This is comfortably the biggest bet in Australian
political history,” said Lane. “Four times as many individual
punters have backed Rudd, but the ones with the biggest wallets
all believe Gillard is across the line.” To contact the reporters on this story:
Jason Scott in Canberra at
jscott14@bloomberg.net ;
Michael Heath in Sydney at
mheath1@bloomberg.net To contact the editor responsible for this story:
Peter Hirschberg at
phirschberg@bloomberg.net | 2012 | gillard-favored-over-rudd-in-australian-labor-leadership-ballo |
RBS May Hire Andy Haste for Direct Line Job, Telegraph Says | By Andrea Gerlin | 2012-02-26T12:04:57Z | http://www.bloomberg.com/news/2012-02-26/rbs-may-hire-andy-haste-for-direct-line-job-telegraph-says.html | 2 | 26 | 2546686371fb2eaade9c22be1dd9a6cc6b03d143 | Royal Bank of Scotland Group Plc (RBS) is
considering former chief executive officer of RSA Insurance
Group Plc Andy Haste for chairman of its Direct Line Group unit,
the Sunday Telegraph reported today, without saying where it
obtained the information. An RBS spokesman declined to comment and Haste did not
return telephone calls, the newspaper said. To contact the reporter on this story:
Andrea Gerlin in London at
agerlin@bloomberg.net To contact the editor responsible for this story:
Phil Serafino at
pserafino@bloomberg.net | 2012 | rbs-may-hire-andy-haste-for-direct-line-job-telegraph-says |
Hollywood Should Beat Digital Pirates at Their Own Game: View | By the Editors | 2012-02-26T15:30:57Z | http://www.bloomberg.com/news/2012-02-26/hollywood-should-beat-digital-pirates-at-their-own-game-view.html
It seems cosmically appropriate that
gambling house odds are on “The Artist” to win this year’s
Academy Award for best picture. The Weinstein Co.’s paean to the
end of the silent movie era is an apt metaphor for an industry
upended by new technologies. Whether or not “The Artist” gets an Oscar statuette, the
film can teach Hollywood an important lesson: Once technical
barriers are broken, they can never be rebuilt. The arrival of
talkies required the industry to rethink an antiquated business
model. This time the existential threat | 2 | 26 | 1a298f98296c4b079e517a062e41a012 | profits. Why can’t the film industry compete on the basis of price
and service, and beat the pirates at their own game? A fully
monetized, legitimate version of Megaupload, paired with lower-
cost digital filmmaking, could expand markets and revenue for
the film industry. Hollywood could still produce its
blockbusters and reap the rewards of the mass market. (If the
VCR didn’t kill off cinemas, digital distribution won’t either.)
The industry might also develop valuable niches that bypass the
local multiplex. Older audiences, for example, might be willing
to watch more films if they could pay less for each viewing and
watch in the comfort of their own homes. UltraViolet’s Proposition Netflix (NFLX) , which streams movies to TVs and personal computers
for a monthly subscription, has been a breakthrough, but it
isn’t the only digital distribution model. Warner Bros . is
testing a service with You On Demand Holdings that streams
movies to consumers in China , where the studios complain that
copyright violations are a way of life. Warner and other
Hollywood studios have also quietly formed a consortium in the
U.S., called UltraViolet , to distribute content digitally. It’s
the right approach but the process is still clumsy, and the
value proposition is undermined by fears that the studios aren’t
fully behind it. The industry should move beyond baby steps. Surveys show
that iTunes, Spotify and other music websites have turned
millions of music pirates into paying customers. The movie
industry should give film buffs the same opportunity to go
legit. Read more opinion online from Bloomberg View . To contact the Bloomberg View editorial board:
view@bloomberg.net . | 2012 | ollywood-should-beat-digital-pirates-at-their-own-game-view |
SNB Vice President Jordan’s Transactions Cleared, Sonntag Says | By Klaus Wille | 2012-02-26T11:09:58Z | http://www.bloomberg.com/news/2012-02-26/snb-vice-president-jordan-s-transactions-cleared-sonntag-says.html | 2 | 26 | 108faea864eb179b6a6477ae9860fc62fde6ac87 | Financial transactions by Swiss
central bank vice president Thomas Jordan have been cleared by
KPMG auditors, Swiss newspaper Der Sonntag reported, without
saying where it obtained the information. The bank council of the Swiss National Bank asked auditors
to look into transactions by the SNB Enlarged Governing Board
members for the three years through 2011 after Philipp Hildebrand was forced to resign as SNB president last month
because of a currency transaction carried out by his wife. As vice president, Jordan is the front runner to succeed
Hildebrand. To contact the reporter on this story:
Klaus Wille in Zurich at
kwille@bloomberg.net To contact the editor responsible for this story:
Craig Stirling at
cstirling1@bloomberg.net | 2012 | snb-vice-president-jordan-s-transactions-cleared-sonntag-says |
Japan Urges Bigger Euro-Crisis Firewall Before G-20 in April | By Toru Fujioka | 2012-02-26T15:01:00Z | http://www.bloomberg.com/news/2012-02-26/japan-urges-bigger-euro-crisis-firewall-before-g-20-in-april.html | 2 | 26 | 7b347a2811609e1d2c0052f40506720d90d75630 | Jun Azumi, Japan ’s finance minister,
wants Europe to widen measures preventing the spread of its debt
crisis before global finance chiefs reconvene to discuss the
International Monetary Fund’s expansion in April. “We expect talks on expanding IMF resources will develop
on the premise that we can create a solution to the European
crisis ahead of the G-20 meeting in April,” Azumi told
reporters after attending a meeting of finance chiefs and
central bank governors in Mexico . Group of 20 finance officials shared the view Europe must
do more to contain its crisis as the two-day meeting kicked off
on Feb. 25, Azumi said. Greece ’s second bailout and the Bank of
Japan ’s easing measures this month have helped to weaken the yen,
reducing concerns about the country’s corporate profits and an
economic recovery from last year’s record earthquake. “Japan has its own interest in the European crisis as it
has been a major reason for the yen’s appreciation,” Takahide Kiuchi , chief economist at Nomura Securities Co., said before
the meeting. “G-20 members seem to be on the same page: Europe
needs to do more and then they are ready to help.” More Effort Needed The U.S. and China have also said the world’s two largest
economies want to see more effort from Europe before discussing
details of IMF resources. U.S. Treasury Secretary Timothy F. Geithner urged Europe in a speech to step up its actions and
make its crisis-fighting commitments “credible.” Japan’s finance chief said G-20 nations didn’t discuss
details of how to help Europe through the IMF at the Feb. 25
session, after the fund proposed last month to boost its lending
by as much as $500 billion to insulate the global economy
against any deterioration of Europe’s sovereign crisis. The region has to boost its European Financial Stability
Facility and European Stability Mechanism for Japan to step up
help in the region, Azumi said. He didn’t discuss specifics of
IMF expansion during bilateral meetings with Geithner and IMF
Managing Director Christine Lagarde , Azumi said. “We have some things we need to keep discussing,” Azumi
said of European support through the IMF. What the IMF expects
Japan and China to do to help increase its resources, and what
Japan and China think isn’t completely matched, he said without
elaborating on the differences. Japan and China agreed to cooperate to assist Europe in
solving its debt crisis through the IMF, and share the view that
Europe needs to create a bigger financial firewall, Azumi said
in Beijing on Feb. 19. Japan Concerns Ease A European agreement for a 130 billion euro bailout plan
for Greece last week and the Bank of Japan’s unexpected action
on Feb. 14 to increase buying of government bonds by 10 trillion
yen have helped the yen to weaken and boosted Japanese stocks. The yen touched 81.22 against the dollar last week, the
weakest since July 8, after it rose to a post World War II high
of 75.35 in October. Japan has conducted six interventions to
address the yen appreciation since August, according to the
latest government reports. While measures including the most recent Greece bailout are
helping ease investor concerns, “I pointed out there is a limit
to the length of time policies can buy,” Bank of Japan (8301) Masaaki Shirakawa said in the joint press conference with Azumi. “I
urged continuous efforts to create a clear path” to address the
debt problems at the G-20 meeting, he said. To contact the reporters on this story:
Toru Fujioka in Tokyo at
tfujioka1@bloomberg.net To contact the editor responsible for this story:
Joshua Goodman at
jgoodman19@bloomberg.net . | 2012 | japan-urges-bigger-euro-crisis-firewall-before-g-20-in-apri |
Prudential May Move Headquarters to Hong Kong, Sunday Times Says | By Catherine Airlie | 2012-02-26T06:51:40Z | http://www.bloomberg.com/news/2012-02-26/prudential-may-move-headquarters-to-hong-kong-sunday-times-says.html | 2 | 26 | 43065cb75e17af61dbcf689c6c3f34027acb7044 | Prudential Plc (PRU) may move its
headquarters to Hong Kong from London , the Sunday Times
reported, citing a review to be mentioned in the company’s
annual report this week. The move would be in response to the so-called European
Solvency II regulations that increase capital requirements , the
newspaper reported. The rules would force Prudential to dispose
of 11 billion pounds ($17 billion) of U.K. assets, according to
the newspaper. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | prudential-may-move-headquarters-to-hong-kong-sunday-times-says |
Gillard Sees ‘Strong Support;’ Rudd Urges Party Unity: Timeline | By Angus Whitley | 2012-02-26T13:00:01Z | http://www.bloomberg.com/news/2012-02-26/gillard-sees-strong-support-rudd-urges-party-unity-timeline.html | 2 | 26 | 58d6b886a5d54cd0a796aeaadca99ee1 | Australian Prime Minister Julia Gillard carries about a 2-to-1 advantage of support among the
103-member Labor caucus heading into today’s leadership ballot
against her predecessor Kevin Rudd , according to weekend tallies
of lawmakers by the Australian and Age newspapers. Following is a timeline of the events, policy announcements
and media reports ahead of the 10 a.m. vote in Canberra. Dec. 4, 2006: Rudd is elected opposition leader, defeating Kim
Beazley in a Labor party ballot. Gillard becomes Rudd’s deputy. Nov. 24, 2007: Rudd becomes Australia’s 30th prime minister
after his Labor party hands John Howard ’s Liberal party the
worst election defeat in its 63-year history. Dec. 3, 2007: Rudd’s government ratifies the Kyoto protocol . Feb. 13, 2008: Rudd offers the nation’s first apology to
Aborigines taken from families for assimilation into the white
community, a period from 1910 to 1970 known as the “Stolen
Generation.” Oct. 14, 2008: Rudd announces an economic stimulus of A$10.4
billion ($11.1 billion) to be given to pensioners, home buyers
and families. Dec. 15, 2008: Rudd’s government announces plans for an
emissions trading scheme to reduce carbon emissions by 5 percent
to 15 percent. Feb. 3, 2009: Government announces second round of stimulus
measures, spending A$42 billion on construction projects
including roads and schools as well as handouts to families and
low-income earners. Dec. 1, 2009: Tony Abbott defeats Malcolm Turnbull to become the
opposition’s third leader since Rudd’s election. April 27, 2010: Rudd delays emissions trading program to 2012. May 4, 2010: Rudd’s Labor party loses its lead for the first
time since coming to power in 2007, according to Newspoll, after
unveiling plans to introduce a 40 percent tax on the profits of
resource companies. June 24, 2010: Gillard becomes Australia’s first female prime
minister after deposing Rudd as Labor leader. Aug. 21, 2010: Gillard loses Labor’s majority in parliament in
an election against Abbott’s Liberal-National coalition. Sept. 7, 2010: Gillard wins support from independent lawmakers
to form a minority government. July 10, 2011: Gillard unveils a tax on polluters. Aug. 31, 2011: Australia ’s top court bars Gillard’s proposal to
send illegal immigrants who arrive by boat to Malaysia . Sept. 2, 2011: Gillard says she won’t quit after media reports
that leaders of her party urged her to consider stepping down,
and Labor lawmakers were considering replacing her with Rudd. Sept. 6, 2011: Gillard’s rating falls to record low, Newspoll
says. The poll shows Rudd as the best candidate to lead Labor. Jan. 21, 2012: Gillard loses the support of independent lawmaker
Andrew Wilkie , who says she broke a pledge to tighten gambling
laws. Jan. 27, 2012: A media aide to Gillard resigns for being
involved in events that led to clashes between police and
aboriginal protesters in Canberra and the rescue by security
officers of Gillard and Abbott. Feb. 13, 2012: A documentary aired by the Australian
Broadcasting Corp. questions Gillard’s version of when she
decided to challenge Rudd for the Labor leadership. Feb. 19, 2012: Labor lawmaker Darren Cheeseman urges Gillard to
step down and backs Rudd as her replacement, the Sunday Age
newspaper reports. Labor can’t win the next election under
Gillard, Cheeseman tells the newspaper. Rudd, in an interview
with Sky News , says he’s changed and learned from his mistakes. Feb. 20, 2012: Simon Crean, a former Labor leader who is
minister for regional Australia, tells the ABC that Rudd should
“put up or shut up.” Rudd denies he has sought anyone’s
support to become prime minister. Feb. 22, 2012: Rudd resigns as foreign minister in Washington .
Deputy Prime Minister Wayne Swan , Rudd’s treasurer when he was
in power, says colleagues are “sick of” Rudd and he is
undermining the government. Feb. 23, 2012: Rudd says colleagues regard him as the “best
prospect” to lead the party at the next election. Gillard calls
a leadership ballot for Feb. 27 “to settle this question once
and for all.” She says Rudd had “very chaotic” work patterns
as leader. Gillard pledges to renounce any leadership ambition
if she loses, and calls on Rudd to make a similar commitment. Feb. 24, 2012: Rudd, back in Brisbane , appeals to Australians to
contact local Labor lawmakers and express views on the party
leadership. Gillard says, “This is not an episode of Celebrity
Big Brother .” Rudd, saying Abbott is on track for a landslide
election victory, declares he’ll contest the leadership ballot.
He also pledged to go to the backbench and won’t challenge
Gillard a second time if he loses. Feb. 25, 2012: With about two-thirds support of her party
caucus, Gillard says “we must choose unity” after the
leadership vote. Rudd also is conciliatory, saying what’s
important is “owning all the good stuff we’ve done together,
myself, Julia, the whole team.” House leader Anthony Albanese
says he’ll back Rudd even as all signs point to a Gillard
victory. Feb. 26, 2012: Gillard says in Melbourne she’s confident of
“strong” support of her Labor colleagues. In Brisbane, Rudd
says Gillard will have his “unequivocal support” if she wins
and calls on unity if he loses. To contact the reporter on this story:
Angus Whitley in Sydney at
awhitley1@bloomberg.net To contact the editors responsible for this story:
Peter Hirschberg at
phirschberg@bloomberg.net ;
Philip Lagerkranser at
lagerkranser@bloomberg.net | 2012 | gillard-sees-strong-support-rudd-urges-party-unity-timeline |
Hunter Mahan Beats Rory McIlroy in World Match Play Championship Final | By Dex McLuskey | 2012-02-26T22:41:55Z | http://www.bloomberg.com/news/2012-02-26/hunter-mahan-beats-rory-mcilroy-in-world-match-play-championship-final.html | 2 | 26 | 0bb8c797a89ca9b2c2bc41ec3e8f5bf1fe771468 | Hunter Mahan beat Rory McIlroy in
the final of the World Match Play Championship for his fourth
title on golf’s U.S. PGA Tour . Mahan’s 2-and-1 win at the Ritz-Carlton’s Dove Mountain
course in Marana, Arizona, prevented the second-ranked McIlroy
from replacing Luke Donald as world No. 1. Mahan, 29, is the first U.S. player to claim the title
since Tiger Woods won for a third time in 2008. Today’s final
was the first between a European and an American since Steve Stricker defeated Pierre Fulke of Sweden in the title match 11
years ago. Mahan’s first win on the PGA Tour came at the Travelers
Championship in 2007. He also won the Phoenix Open and
Bridgestone Invitational two years ago. McIlroy was seeking to become the fifth European and second
golfer from Northern Ireland after Darren Clarke in 2000 to win
the World Match Play title. A victory for McIlroy would have
been the third straight for the U.K. at the event, which was won
by Englishman Donald and Ian Poulter the past two years. McIlroy, at 22 years, nine months and 22 days, was seeking
to become the second-youngest golfer to top the Official World
Golf Ranking after Woods, who was 21 years, five months and 17
days old when he first achieved the feat on June 15, 1997. To contact the reporter on this story:
Dex McLuskey in Dallas at
dmcluskey@bloomberg.net To contact the editor responsible for this story:
Michael Sillup at msillup@bloomberg.net . | 2012 | unter-mahan-beats-rory-mcilroy-in-world-match-play-championship-fina |
Italian Government Targets Labor Market Accord, Passera Says | By Francesca Cinelli | 2012-02-26T12:24:30Z | http://www.bloomberg.com/news/2012-02-26/italian-government-targets-labor-market-accord-passera-says.html | 2 | 26 | a40678a4c9d5fb6ce59555a6ad2bcf05b348c073 | Italy’s government will seek to
reach an agreement with unions and companies before implementing
changes in the labor market, Development Minister Corrado Passera told Sky TG24 in an interview. To contact the reporter on this story:
Francesca Cinelli in Milan at
fcinelli@bloomberg.net To contact the editor responsible for this story:
James Ludden at
jludden@bloomberg.net | 2012 | italian-government-targets-labor-market-accord-passera-says |
Afghan Leaders Cancel Trip for Security Talks in Washington, Pentagon Says | By Viola Gienger | 2012-02-26T22:33:36Z | http://www.bloomberg.com/news/2012-02-26/afghan-leaders-cancel-trip-for-security-talks-in-washington-pentagon-says.html | 2 | 26 | 155c1929b7c21d212ca8945efba42e3769b24dcb | Afghan leaders have canceled
security talks that were scheduled for this week in Washington ,
Pentagon spokesman George Little said in an e-mailed statement. The officials, including the defense and interior ministers
“are consulting this week with others in the Afghan government
and Afghan religious leaders on how to protect” U.S. and NATO
personnel “and quell violence in the country,” Little said. U.S. Secretary of Defense Leon Panetta “understands why
that’s a priority and why they are unable to travel to
Washington in the coming says. He looks forward to hosting them
at the Pentagon in the near future.” To contact the reporter on this story:
Viola Gienger in Washington at
vgienger@bloomberg.net To contact the editor responsible for this story:
Ann Hughey at
ahughey@bloomberg.net | 2012 | afghan-leaders-cancel-trip-for-security-talks-in-washington-pentagon-says |
Most German SPD Lawmakers to Back Greek Rescue, Welt Says | By Tony Czuczka | 2012-02-26T11:37:11Z | http://www.bloomberg.com/news/2012-02-26/most-german-spd-lawmakers-to-back-greek-rescue-welt-says.html | 2 | 26 | 29de587bc55bc333f66cb02ed8ab2e11bd60798c | Sigmar Gabriel, the leader of
Germany ’s main opposition Social Democrats, said most of his
party’s lawmakers will back Greece ’s second bailout, Die Welt
reported , citing an interview. A Greek default would have incalculable consequences and
reward speculators betting on Greece’s financial collapse,
Gabriel was quoted as saying in the Berlin-based newspaper
today. Germany’s lower house of parliament, the Bundestag, is
scheduled to vote tomorrow on the rescue package for Greece.
Chancellor Angela Merkel’s coalition has 330 seats in the 620-
member chamber. To contact the reporter on this story:
Tony Czuczka in Berlin at
aczuczka@bloomberg.net To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net | 2012 | ost-german-spd-lawmakers-to-back-greek-rescue-welt-says |
Mandela Discharged After Procedure for Abdominal Complaint | By Carli Cooke | 2012-02-26T13:18:50Z | http://www.bloomberg.com/news/2012-02-26/mandela-discharged-after-procedure-for-abdominal-complaint-1-.html | 2 | 26 | 1bde3ee7b80cf2b4170a83c9abeab2c8ca800505 | Nelson Mandela , the former South
African President, was discharged from an undisclosed hospital
today after a diagnostic procedure following his admission
yesterday to determine the cause of abdominal complaints. “The doctors have decided to send him home as the
diagnostic procedure he underwent did not indicate anything
seriously wrong with him,” the presidency said on its website.
The 93-year-old was in good health, comfortable and surrounded
by his family earlier, the presidency said. Mandela underwent a laparoscopy, the South African Press
Association said, citing Defence Minister Lindiwe Sisulu today.
It’s a surgical procedure in which a fiber-optic instrument is
inserted through the abdominal wall to view the organs in the
abdomen or permit small-scale surgery, according to Oxford
Dictionaries. Mandela’s admission wasn’t an emergency and was “pre-
planned,” Mac Maharaj, the Presidency’s spokesman, said by
phone yesterday. Mandela spent 27 years in prison on an island near Cape
Town for fighting for black rights and became the country’s
first black president after apartheid, the official racial
segregation policy, ended in 1994. He negotiated a peaceful end
to the old regime with leaders of South Africa ’s white minority
government. He stepped down as president voluntarily in 1999. Mandela was admitted to Netcare Milpark Hospital in
Johannesburg briefly a year ago for an acute respiratory
infection. He had radiotherapy treatment in 2001 after doctors
found microscopic prostate cancer. He moved back to Johannesburg on Jan. 29 after spending
several months at his house in Qunu in the Eastern Cape
province, the Johannesburg-based Sunday Times reported on that
day, citing Maharaj. To contact the reporter on this story:
Carli Cooke in Johannesburg at
clourens@bloomberg.net To contact the editor responsible for this story:
Gavin Serkin at
gserkin@bloomberg.net | 2012 | andela-discharged-after-procedure-for-abdominal-complaint-1- |
Ferragamo CEO Says 2012 Started ‘Very Well,’ Europe Sales Rise | By Andrew Roberts | 2012-02-26T19:30:23Z | http://www.bloomberg.com/news/2012-02-26/ferragamo-ceo-says-2012-started-very-well-europe-sales-rise.html | 2 | 26 | baa30df767288d51ffa564cc04f38cc7f6c1cd63 | Salvatore Ferragamo (SFER) SpA Chief
Executive Officer Michele Norsa said the outlook “in general
remains positive” after a strong start to 2012, which includes
sales gains in Europe. While Asia and the U.S. are leading revenue growth, “in
Europe, fortunately, we continue to have a very positive trend
in terms of visitors,” Norsa said in an interview before the
Florence, Italy-based company’s women’s fashion show in Milan
today. “The performance is positive, even in Europe. China
continues to grow strongly.” “The year started very well,” Norsa said. To contact the reporter on this story:
Andrew Roberts in Paris at
aroberts36@bloomberg.net To contact the editor responsible for this story:
Sara Marley at smarley1@bloomberg.net | 2012 | ferragamo-ceo-says-2012-started-very-well-europe-sales-rise |
Frankfurt Airport Ground Controllers to Resume Strike Tonight | By Tom Lavell | 2012-02-26T08:55:05Z | http://www.bloomberg.com/news/2012-02-26/frankfurt-airport-ground-controllers-to-resume-walkout-over-wages-tonight.html | 2 | 26 | d6c598c4f981b35973b55b0e79026c068cf24207 | Frankfurt airport ’s ground
controllers will strike for more than three days starting this
evening, resuming industrial action that started in the middle
of the month, after contract talks broke down on Feb. 24. The employees, who handle taxiing planes and bringing
aircraft to their gates or parking stands, will halt work from 9
p.m. today until 5 a.m. March 1, the Gewerkschaft der
Flugsicherung controllers’ union said on its website . Traffic at Frankfurt, Europe ’s third-busiest airport after
London Heathrow and Paris Charles de Gaulle, has been hampered
since the union started limited walkouts on Feb. 16. The strike
included a three-day stoppage that ended Feb. 22, when the GdF
and airport owner Fraport AG (FRA) agreed to restart negotiations. The airport, which is the main hub for Deutsche Lufthansa
AG (LHA) , can handle “extended strike periods” by the ground
controllers, Fraport said yesterday. Fraport shifted some administrative employees who have
ground-control qualifications to handle the controllers’ jobs
during the previous walkouts. That helped lift the proportion of
scheduled services completed from 68 percent during the Feb. 16
stoppage to 85 percent on Feb. 21, Fraport said at the time. The dispute centers on the terms of possible contracting
out of controllers’ duties and on pay increases, including an
earlier recommendation by a mediator that Fraport rejected as
excessive. To contact the reporter on this story:
Tom Lavell in Frankfurt at
tlavell@bloomberg.net To contact the editor responsible for this story:
David Risser at
drisser@bloomberg.net | 2012 | frankfurt-airport-ground-controllers-to-resume-walkout-over-wages-tonig |
PPR’s Yves Saint Laurent to Name Slimane as Designer, AFP Says | By Heather Smith | 2012-02-26T14:49:46Z | http://www.bloomberg.com/news/2012-02-26/ppr-s-yves-saint-laurent-to-name-slimane-as-designer-afp-says.html | 2 | 26 | 51efda2b7a05badcf944ccc85c9a11bc750b5ed4 | PPR SA (PP) will name Hedi Slimane as
chief designer for its Yves Saint Laurent label, replacing
Stefano Pilati, Agence France-Presse said, citing unnamed
sources. PPR will probably announce Slimane, formerly artistic
director at Dior Homme, for the post during Paris Fashion Week,
which runs from Feb. 28 to March 7, AFP said yesterday. To contact the reporter on this story:
Heather Smith in Paris at
hsmith26@bloomberg.net To contact the editor responsible for this story:
Anthony Aarons at
aaarons@bloomberg.net | 2012 | ppr-s-yves-saint-laurent-to-name-slimane-as-designer-afp-says |
Iran’s Bushehr Nuclear Plant to Work at Full Capacity, IRNA Says | By Ladane Nasseri | 2012-02-26T08:29:49Z | http://www.bloomberg.com/news/2012-02-26/iran-s-bushehr-nuclear-plant-to-work-at-full-capacity-irna-says.html | 2 | 26 | 5c23c81afb2e64a96a71c3584f742310dd8e9d56 | Iran ’s Bushehr nuclear plant, the
country’s first, will start operating at full capacity at the
beginning of the new Iranian year, the official Islamic Republic
News Agency reported, citing Iranian Atomic Energy Organization
chief Fereydoun Abbasi-Davani. Abbasi-Davani didn’t give a specific date. Iran’s new year
starts on March 20th. He had said last month that Bushehr would
start operating at full capacity on Feb. 1. Iran linked the 1000-megawatt power plant, which had been
disconnected for tests, to the national grid on Feb. 11 and it
began generating 700 megawatts of electricity, Abbasi-Davani
said yesterday, according to IRNA. To contact the reporter on this story:
Ladane Nasseri in Dubai at
lnasseri@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | iran-s-bushehr-nuclear-plant-to-work-at-full-capacity-irna-says |
Iran Invests in Zimbabwe Tractor-Assembly Plant, Press TV Says | By Ladane Nasseri | 2012-02-26T06:43:11Z | http://www.bloomberg.com/news/2012-02-26/iran-invests-in-zimbabwe-tractor-assembly-plant-press-tv-says.html | 2 | 26 | 6a55b0b6756d097f8cc538dbafe577478f2a4af8 | Iran has invested $3.5 million in a
jointly-built tractor assembly plant in Zimbabwe , the state-run
Press TV news channel reported, citing Mohammad Pournajaf,
Iran’s ambassador to the African nation. The Motira project in Zimbabwe’s capital Harare began in
2010, according to Press TV’s website, which gave no details
about the facility’s total cost. To contact the reporter on this story:
Ladane Nasseri in Dubai at
lnasseri@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | iran-invests-in-zimbabwe-tractor-assembly-plant-press-tv-says |
Yemen Says Al-Qaeda Behind President-Palace Attack, Saba Reports | By Mohammed Hatem | 2012-02-26T13:40:59Z | http://www.bloomberg.com/news/2012-02-26/yemen-says-al-qaeda-behind-president-palace-attack-saba-reports.html | 2 | 26 | 5fc4d4657cb158707831fc6521c51fc1b3231db0 | Al-Qaeda was behind a suicide car
bombing at the gate of the presidential palace in Yemen ’s
southeastern city of Mukalla that left 21 members of the
presidential guard and a woman dead, the state-run Saba news
agency reported. It cited the preliminary findings of a regional
security committee that is investigating the attack. To contact the reporter on this story:
Mohammed Hatem in Sana’a at
mhatem1@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | yemen-says-al-qaeda-behind-president-palace-attack-saba-reports |
United Development of Qatar Says Investor Still Seeking Stake in Company | By Shaji Mathew | 2012-02-26T05:43:15Z | http://www.bloomberg.com/news/2012-02-26/united-development-of-qatar-says-investor-still-seeking-stake-in-company.html | 2 | 26 | 32d4a19f730d5f89de0f5f64381bb70b0392ac4d | United Development Co. (UDCD) , a Qatari
investor in infrastructure and energy, said an investor is
seeking to become a strategic shareholder in the company. The company received a new letter from Qatar National Bank,
representative of an investor, indicating it “still wants to
join the company as a strategic shareholder by way of increasing
the capital,” according to a statement on the Qatar bourse
today. United Development said on Jan. 29 that an investor pulled
a request to buy a stake in the company after seeking to change
the terms of an offer. Qatar’s Pension and Social Insurance Authority offered to
buy 80 million stocks of United Development for 20 riyals a
share to become a “strategic shareholder” in the company,
United Development said on Dec. 28. To contact the editor responsible for this story:
Shaji Mathew at
shajimathew@bloomberg.net | 2012 | united-development-of-qatar-says-investor-still-seeking-stake-in-company |
Oil Drops From Nine-Month High After IMF Warns on Global Economic Growth | By Ben Sharples | 2012-02-27T07:49:06Z | http://www.bloomberg.com/news/2012-02-26/crude-oil-declines-in-new-york-trading-brent-little-changed-in-london.html | 2 | 26 | 9bf40665537f416387fad829e708e300 | Oil fell from the highest level in
more than nine months as investors speculated prices may have
climbed too far after the International Monetary Fund warned
that the global economy is still at risk of a slowdown. Futures slid as much as 0.5 percent in New York after seven
days of gains. Oil’s relative strength index signaled that the
longest winning streak since January 2010 may have been
exaggerated. The world economy is “not out of the danger zone”
amid fragile financial systems, high debt and rising world oil
prices , IMF Managing Director Christine Lagarde said. Prices
gained the most in two months last week as sanctions tightened
against Iran, OPEC’s second-biggest producer. “The market is taking a bit of profit,” said Jonathan Barratt , chief executive of Barratt’s Bulletin, a commodity
markets newsletter in Sydney. “There’s still a lot of
uncertainty. The market is still concerned about what will
happen with Iran .” Oil for April delivery fell as much as 58 cents to $109.19
a barrel in electronic trading on the New York Mercantile
Exchange and was at $109.28 at 3:46 p.m. Singapore time. The
contract gained 1.8 percent to $109.77 on Feb. 24, the highest
close since May 3. Prices increased 6.3 percent last week and
are 13 percent higher the past year. Brent oil for April settlement declined 90 cents to $124.57
on the London-based ICE Futures Europe exchange. The European
benchmark contract’s premium to New York-traded West Texas
Intermediate was at $15.29, compared with $15.70 on Feb. 24 and
a record $27.88 on Oct. 14. Relative Strength New York crude’s 14-day relative strength index climbed to
76.9 on Feb. 24, the highest since April, according to data
compiled by Bloomberg. A reading above 70 indicates futures have
risen too quickly and further gains aren’t sustainable.
Investors tend to sell contracts when prices are considered
overbought. Today’s RSI is around 75. Group of 20 nations must strengthen their economies against
further shocks including higher crude prices, Lagarde said after
a meeting of the G-20 in Mexico City. Higher oil prices may push
inflation in South Korea , the world’s fifth-largest oil
importer, above the government’s target and have a “far-
reaching impact” on the economy, Finance Minister Bahk Jae Wan
said at the meeting. The G-20 rebuffed German-led calls to help Europe fight its
debt crisis, saying any decision on outside aid hinges on the
euro area delivering more financial firepower within two months.
Progress will be assessed in April, when officials gather in
Washington for the IMF’s spring meetings, the G-20 said in a
statement. Iran Threat German lawmakers vote on a second Greek rescue package
today. Europe’s biggest economy is also weighing whether to
agree to beef up the region’s financial backstop to a potential
750 billion euros ($1 trillion) at a March 1-2 European summit. Oil has advanced 11 percent this year amid concern that
sanctions against Iran’s nuclear program will disrupt crude
supplies from the second-biggest producer in the Organization of
Petroleum-Exporting Countries. Iran has threatened to shut the
Strait of Hormuz , a transit route for a fifth of the world’s
oil, in response to an embargo. Russian Prime Minister and presidential front-runner
Vladimir Putin warned Western leaders against a military strike
on Iran. Russia is concerned that there is a “growing threat”
of action against Iran that would be “truly catastrophic,” he
said in the latest of a series of articles published before
Russia’s March 4 elections. Hedge funds and other large speculators raised wagers on
rising prices 11 percent in the week ended Feb. 21, according to
the Commodity Futures Trading Commission’s Commitments of
Traders report. Bets increased 26 percent over two weeks, the
biggest gain since March. To contact the reporter on this story:
Ben Sharples in Melbourne at
bsharples@bloomberg.net To contact the editor responsible for this story:
Alexander Kwiatkowski at
akwiatkowsk2@bloomberg.net | 2012 | crude-oil-declines-in-new-york-trading-brent-little-changed-in-london |
Striking Iran Would Be ‘Truly Catastrophic’: Putin | By Stephen Bierman | 2012-02-26T20:15:00Z | http://www.bloomberg.com/news/2012-02-26/putin-says-military-strike-on-iran-would-be-truly-catastrophic-.html | 2 | 26 | db578841dcfca8ceacdf4752dc925e54fa755a67 | Prime Minister and presidential
front-runner Vladimir Putin warned Western leaders against a
military strike on Iran in the latest of a series of articles
published before Russia’s March 4 elections. “Without a doubt, Russia is concerned about the growing
threat of a military strike on this country,” Putin said. “If
this happens the fallout would be truly catastrophic.” Officials from the International Atomic Energy Agency were
denied access to Iran’s Parchin military base earlier this
month, raising concern over a weapons component to the country’s
atomic program that the U.S. and Israel have signaled might
prompt an attack. The Russian prime minister said he supports Iran’s
development of atomic energy for peaceful purposes. North
Korea’s declared nuclear weapons ambitions are “unacceptable,”
he said in the article published in the Russian newspaper
Moskovskiye Novosti. The U.S. has a “fundamentally different understanding of
security from ours,” he said. Putin defended Russia ’s veto of an Arab League plan
presented to the United Nations to facilitate a political
transition in Syria earlier this month. The resolution would act
as “a signal for military interference in Syria’s internal
processes,” he said. Syria has come under mounting international pressure as a
result of President Bashar Al-Assad’s crackdown on protesters,
which is nearing its one-year mark. To contact the reporter on this story:
Stephen Bierman in Moscow at
sbierman1@bloomberg.net To contact the editor responsible for this story:
Will Kennedy at
wkennedy3@bloomberg.net | 2012 | putin-says-military-strike-on-iran-would-be-truly-catastrophic- |
Deutsche Bank, Fraport: Europe Equity Preview | By Katia Porzecanski and Andrea Gerlin | 2012-02-26T23:35:22Z | http://www.bloomberg.com/news/2012-02-26/deutsche-bank-fraport-europe-equity-preview.html | 2 | 26 | 6db636afefc547bd90126c4bf7bb1486 | Shares of the following companies
may have unusual moves in European (SXXP) trading. Stock symbols are in
parentheses. The Stoxx Europe 600 Index (SXXP) gained 0.3 percent to 264.77.
The Stoxx 50 Index (SX5P) fell less than 0.1 percent to 2,486.30. The
Euro Stoxx 50 Index (SX5E) , a benchmark measure for nations using the
euro, rallied 0.6 percent to 2,523.69. Banca Monte dei Paschi di Siena SpA (BMPS IM): Clessidra
investment fund is close to buying as much as 5 percent in Banca
Monte dei Paschi di Siena SpA (BMPS) from the bank’s biggest investor,
Fondazione Monte dei Paschi, Radiocor reported, without saying
where it got the information. Banca Monte dei Paschi di Siena
rose 1.6 percent to 0.392 euros. BP Plc (BP/) : The oil company plans to spend $1.73
billion on legal administrative costs from the 2010 Deepwater
Horizon Gulf of Mexico oil spill, the Financial Times reported,
citing provisions in the company’s annual report. A trial over
the disaster may stretch into 2014, the Sunday Telegraph
reported, citing an interview with CEO Bob Dudley. BP rose 0.2
percent to 496.2 pence. Deutsche Bank AG (DBK) (DBK GY): Germany ’s largest lender won’t
approve the 812-million euro ($1.1 billion) damages payment to
the heirs of Leo Kirch , Sueddeutsche Zeitung reported, citing an
unidentified person with knowledge of the company. Deutsche Bank
rose 4.5 percent to 34.86 euros. Eurasian Natural Resources Corp. (ENRC) : Chairman Mehmet
Dalman has been told to “refresh and revive” the mining
company’s board, the Sunday Telegraph reported, without saying
where it got the information. ENRC rose 0.5 percent to 739
pence. Fraport AG (FRA) (FRA GY): The operator of Frankfurt Airport
failed to reach an agreement over wage conditions and
contracting with its ground control employees’ union, which said
it didn’t rule out further strikes. The shares rose 3.5 percent
to 47.79 euros. OAO Lukoil (LKOH) (LKOH RU): Russia ’s second-largest oil producer
is interested in natural gas and electricity assets in Turkey ,
Sabah reported, citing Vadim Vorobyov, vice president of the
company. OAO Lukoil fell 0.7 percent to 61.55 rubles. Pearson Plc (PSON) : The owner of the Financial Times may
raise its dividend by almost 10 percent, the Sunday Times
reported without saying where it obtained the information.
Pearson gained 1.5 percent to 1,251 pence. Premier Foods Plc (PFD) : The U.K. food company is close
to agreeing 1 billion pounds ($1.6 billion) of new bank loans to
help secure its future, the Sunday Times reported, citing
unidentified sources close to the company. Premier Foods rose
2.3 percent to 11.25 pence. Swiss Re Ltd. (SREN) (SREN VX): The reinsurer is currently not
focusing on acquisitions and is “growing organically,” Chief
Executive Officer Michel Lies told SonntagsZeitung in an
interview. Swiss Re fell 1 percent to 53.85 Swiss francs. Unipol Gruppo Finanziario SpA (UNI) : Unipol received
support from Premafin Finanziaria SpA for its plan to merge with
Fondiaria-Sai SpA, Il Messaggero reported, without saying where
it got the information. Unipol rose 1.5 percent to 0.284 euros. To contact the reporter on this story:
Katia Porzecanski in New York at
kporzecansk1@bloomberg.net To contact the editor responsible for this story:
Andrew Rummer at arummer@bloomberg.net . | 2012 | deutsche-bank-fraport-europe-equity-preview |
‘Artist’ Set to Bring New Fans as Oscar-Odds Favorite | By Michael White | 2012-02-26T10:48:38Z | http://www.bloomberg.com/news/2012-02-26/weinstein-s-the-artist-is-set-to-pull-in-fans-as-odds-on-oscar-favorite.html | 2 | 26 | 2672abc7846541109144d9c9b8e98ed6 | U.K. betting websites have already
crowned “The Artist” as the favorite to win this year’s
Academy Award for best picture, offering as little as $1 in
return for a $20 bet. Moviegoers are still casting their votes. The question is how much more money “The Artist” will
make if a best-picture Oscar is added to its accolades when the
84th Academy Awards are handed out late today in Hollywood. The
film has taken in $73 million worldwide on a $15 million
production budget, according to researcher Box Office Mojo . Weinstein Co.’s silent, black-and-white film about an aging
actor and an up-and-coming ingenue fits the profile of recent
small-budget winners. The movie by director Michel Hazanavicius
is ahead of “The Hurt Locker” from two years ago and far
behind exceptional performers like “The King’s Speech” and
“Slumdog Millionaire.” All were made for about $15 million,
according to Box Office Mojo. “This year, there is just not a blockbuster in the
group,” said Paul Dergarabedian , president of the box-office
division of Hollywood.com, a movie research website. “There’s
always a disconnect, and that’s the way it should be. It’s the
best picture, not the best box office.” “The Artist,” about a silent-era film star unable to make
the transition to “talkies,” is among several movies that have
led to a critical and commercial revival for the studio, which
struggled after founders Harvey and Bob Weinstein left Walt
Disney Co. (DIS) ’s Miramax to create the company in 2005. Weinstein Comeback The comeback began in 2009, when the Weinsteins garnered
six nominations and one win for “The Reader,” according to the
Academy database. In 2010, they captured 13 nominations for films including
“Inglourious Basterds.” Last year, the New York-based studio
collected 13 nominations, and won awards for “The King’s
Speech” and its male lead Colin Firth . The period drama took in
$414 million worldwide, according to Box Office Mojo. This year they have a total of 16 nominations, including
ones for “The Iron Lady ” and “My Weekend With Marilyn.”
Weinstein has U.S. distribution rights to “The Artist.” “We’ve had a tremendous track record with ‘The Artist’ and
should we garner awards, it could have a positive effect on the
box office,” said Erik Lomis, Weinstein Co.’s president of
theatrical distribution and home entertainment. The studio increased the number of theaters where the film
plays this weekend to 966 from 808, Lomis said in an interview. Critical success has coincided with improving finances for
the studio. In 2010, Weinstein eliminated debt by transferring
ownership of some 250 movies to Goldman Sachs Group Inc. and
Assured Guaranty Ltd. (AGO) , a person with knowledge of the situation
said at the time. Loan Request Now the company is seeking a loan of about $150 million to
further support its filmmaking, people with knowledge of the
situation said last week. EasyOdds.com , a site that aggregates betting lines, lists
“The Artist” as the favorite among 18 oddsmakers to win best
picture. Ladbrokes Plc (LAD) offers the shortest odds at 1/20, meaning
gamblers have to risk $20 to win $1. AllYouBet offers a $1
return for $8 wagered. “The Descendants,” the family drama
featuring George Clooney , is the second favorite at a distant
5.1 to 1 at AllYouBet and longer odds elsewhere. If “The Artist” wins, it will be the second silent film
to win best picture. “Wings” was crowned outstanding picture
at the first Academy Awards on May 16, 1929, at the Hollywood
Roosevelt Hotel, walking distance from this year’s ceremony. Golden Globes “The Artist” already won the Golden Globe award for best
musical or comedy and was named best film by the New York Film
Critics Circle, the Producers Guild of America, and the Toronto
Film Critics Association. Its 10 Oscar nominations include best
actor for star Jean Dujardin and best director for Hazanavicius. This year, the academy chose nine best-picture nominees,
the third year since the number was increased from five. Others are Martin Scorsese ’s 3-D fantasy “Hugo;” “The
Help,” from Disney and DreamWorks Studios; Warner Bros .’
“Extremely Loud & Incredibly Close;” Woody Allen’s romantic
comedy “Midnight in Paris;” Sony Corp. (6758) ’s “Moneyball;”
director Terrence Malick’s “The Tree of Life;” and Steven Spielberg ’s “War Horse.” Since the nominations on Jan. 24, tickets sales for “The
Artist” have more than doubled in the U.S. and Canada to $28.1
million through Feb. 20, according to Hollywood.com. The biggest beneficiary of a nomination, on a percentage
basis, was “Extremely Loud and Incredibly Close.” The film had
taken in $10.7 million before the nominations and sales almost
tripled to $30.8 million, according to Hollywood.com. To contact the reporter on this story:
Michael White in Los Angeles at
mwhite8@bloomberg.net To contact the editor responsible for this story:
Anthony Palazzo at
apalazzo@bloomberg.net | 2012 | weinstein-s-the-artist-is-set-to-pull-in-fans-as-odds-on-oscar-favorite |
N. Korea Condemns S. Korea-U.S. Joint Drill | By Seyoon Kim | 2012-02-26T22:09:29Z | http://www.bloomberg.com/news/2012-02-26/n-korea-condemns-s-korea-u-s-joint-drill.html | 2 | 26 | ed1310e608dce8fec39530f30d8436eaf678e108 | North Korea ’s state Korean Central
News Agency condemned South Korea-U.S. annual military drills to
start today, saying the drills are “an unpardonable
infringement upon the sovereignty and dignity” of North Korea.
The North Korean army and its people “are fully ready to fight
a war” with the U.S. and South Korea , KCNA said in a
commentary. To contact the editor responsible for this story:
Seyoon Kim at
skim7@bloomberg.net | 2012 | n-korea-condemns-s-korea-u-s-joint-dri |
Sinn Fein Most Popular Irish Opposition Party, Sunday Times Says | By Joe Brennan | 2012-02-26T12:18:57Z | http://www.bloomberg.com/news/2012-02-26/sinn-fein-most-popular-irish-opposition-party-sunday-times-says.html | 2 | 26 | 5e6acc8f89040e040ea832bc9861e14964499362 | Support for Ireland’s Sinn Fein
party has risen to 25 percent, making it the nation’s most
popular opposition party, the Sunday Times said, citing a poll. The poll by Dublin-based market research company Behaviour
& Attitudes , showed that backing for Sinn Fein rose four
percentage points since mid-December, the Sunday Times reported
today. Support for Ireland’s two ruling coalition parties, Fine
Gael and Labour Party , rose 1 point to a combined 42 percent, it
said. Fianna Fail, the country’s other opposition in parliament,
fell 4 points to 16 percent, the newspaper said. The survey of 914 people, carried out Feb. 15-20, has a 3.3
percentage point margin of error, the Sunday Times said To contact the reporter on this story:
Joe Brennan in Dublin at
jbrennan29@bloomberg.net ; To contact the editor responsible for this story:
Edward Evans at eevans3@bloomberg.net ; | 2012 | sinn-fein-most-popular-irish-opposition-party-sunday-times-says |
Abu Dhabi’s Taqa Raises 650 Million Ringgit From Sukuk Sale in Malaysia | By Inal Ersan | 2012-02-26T07:45:15Z | http://www.bloomberg.com/news/2012-02-26/abu-dhabi-s-taqa-raises-650-million-ringgit-from-sukuk-sale-in-malaysia.html | 2 | 26 | 245b8c933b80463e25786a88617852eaa45cf8d4 | Abu Dhabi National Energy Co. (TAQA) , the
utility known as Taqa, said it raised 650 million ringgit ($215
million) from the sale of Islamic bonds. The 10-year sukuk was sold at a profit rate of 4.65
percent, the company said in a statement to the Abu Dhabi bourse
today. Standard Chartered Saadiq Berhad was the lead arranger
for the transaction. The bonds were part of the 3.5 billion ringgit program the
company set up in November. To contact the reporter on this story:
Inal Ersan in Dubai at
iersan@bloomberg.net To contact the editor responsible for this story:
Shaji Mathew at
shajimathew@bloomberg.net | 2012 | abu-dhabi-s-taqa-raises-650-million-ringgit-from-sukuk-sale-in-malaysia |
A Brokered Republican Convention? Keep Dreaming: Albert R. Hunt | By Albert R. Hunt | 2012-02-26T16:01:25Z | http://www.bloomberg.com/news/2012-02-26/a-brokered-republican-convention-keep-dreaming-albert-r-hunt.html
If Mitt Romney loses the Feb. 28
primary in Michigan, panic will set in among Republican
politicians and big contributors; talk of a brokered convention
or a late-entering candidate will reach a crescendo. To be sure, the Republican presidential contest could be in
shambles. If Romney then loses Ohio the following week, he’s a
severely | 2 | 26 | db272a29025d467191a8f6305a983a20 | chairman of the House Budget Committee, who is a genuine ideas
man. He’s never run outside his southeastern Wisconsin district,
and in a national contest, he probably would resemble the
proverbial can’t-miss baseball prospect who’s rushed to the
Major Leagues too soon and never achieves his potential. Who would be the brokers and who would be the brokees? Voters and politicians who have participated in the process
wouldn’t be happy about turning to someone who hasn’t. “A candidate needs to be vetted,” says Claira Monier, the
co-chairwoman of the Santorum effort in New Hampshire . “If
we’re not going to vet our nominee, why have a primary
process?” A brokered convention is a political relic. In the last 28
conventions of both parties, the nominee was picked on the first
ballot. Ford and Reagan The most closely contested was in 1976, after Gerald Ford,
the incumbent Republican president, and his challenger, Ronald Reagan , finished the primaries in early June dead even. Ford, using the perquisites of office, was picking off a
handful of delegates every few days until the conservative
challenger delivered a shocker by announcing that he had tapped
a liberal Pennsylvania senator, Richard Schweiker, as his
running mate. As the two camps went to the Kansas City
convention, the president enjoyed a slight lead. The Reagan high
command brilliantly chose to wage a fight over a rule that would
have forced Ford to announce his running mate in advance and
probably tilted the nomination toward Reagan. The Ford camp
prevailed by a couple dozen votes. It was high drama, with circumstances that were totally
different from anything this time. There were two compelling
candidates and the argument was over who was stronger, not who
has the greatest deficiencies; no one ever mentioned a
compromise candidate. Romney and Santorum aren’t Reagan or Ford, leading
Republicans fear; almost no one gives Ron Paul or Newt Gingrich
any serious shot at the nomination, though they could be in a
position to cut deals by late August, when Republicans reach
Tampa for the convention. Of the front-runners, even politicians disposed to support
Romney and who believe he is the strongest candidate against
President Barack Obama , are taken aback by the persistent
resistance to his nomination from a sizeable faction of
Republican conservatives. By the end of January, the former
Massachusetts governor had more money, endorsements, experience
as a candidate, and had won New Hampshire, almost won Iowa and
ran away with Florida . In past years that would have been game,
set, match. Not this time. In Santorum’s case, it’s the lack of peer support that is
striking. Of the 78 Republicans he served with in the Senate,
only one is backing him. Almost no major Republican from his
home state of Pennsylvania is a backer. You get a blank stare
when you ask leading party professionals about Santorum’s inner
circle. Still, the odds in Las Vegas this week are around 90
percent that one of these two men will be the party’s nominee.
Here is some solace for the Republican nervous Nellies: At this
same stage in the campaign, both Reagan and Bill Clinton looked
like losers. Ok, it’s a reach; it’s the best they have. ( Albert R. Hunt is the executive editor for Washington at
Bloomberg News. The opinions expressed are his own.) Read more opinion online from Bloomberg View . To contact the writer of this column:
Albert Hunt in Washington at
ahunt1@bloomberg.net To contact the editor responsible for this column:
Max Berley at mberley@bloomberg.net . | 2012 | a-brokered-republican-convention-keep-dreaming-albert-r-hun |
Egyptian Court Adjourns Trial of Foreign Pro-Democracy Workers to April 26 | By Tarek El-Tablawy and Abdel Latif Wahba | 2012-02-26T12:46:03Z | http://www.bloomberg.com/news/2012-02-26/egyptian-court-adjourns-trial-of-foreign-pro-democracy-workers-to-april-26.html | 2 | 26 | 40de594375762aae3bb27e8daa74d0c91181fe89 | An Egyptian court today adjourned
until April 26 the trial of 43 workers for non-governmental
organizations, including 16 Americans. To contact the reporter on this story:
Tarek El-Tablawy in Cairo at
teltablawy@bloomberg.net To contact the editor responsible for this story:
Louis Meixler at
lmeixler@bloomberg.net | 2012 | egyptian-court-adjourns-trial-of-foreign-pro-democracy-workers-to-april-26 |
AIJ Probe by Japan Regulator Undermines Pensions Alternative Asset Plans | By Tomoko Yamazaki and Komaki Ito | 2012-02-27T02:40:22Z | http://www.bloomberg.com/news/2012-02-26/aij-probe-by-japan-regulator-undermines-pensions-alternative-asset-plans.html | 2 | 26 | db97270596c64251b3b5577e1b0f46c1 | The suspension of AIJ Investment
Advisors Co. ’s operations amid concerns hedge funds it manages
had lost pension money may undermine plans by Japan’s retirement
funds to boost returns to meet demand in an aging society. The Financial Services Agency on Feb. 24 ordered the Tokyo-
based firm with 183.2 billion yen ($2.3 billion) of client money
to stop business for a month as the regulator investigates
“possible losses” at AIJ’s hedge funds. The FSA also will
undertake a nationwide probe of 263 asset managers. “If the funds actually suffered losses, this could
potentially have a massive impact on pension plans that actually
invested with them,” said Taro Ogai, who oversees consulting
for pension fund investments at Towers Watson in Tokyo .
“Pensions already face difficulties. At a time when they are
trying to boost returns and cut risks, investing in hedge funds
may become difficult for them.” The inquiry is a setback for Japan’s pension industry that
has been looking to diversify away from bonds and equities into
alternatives investments, including hedge funds, to maintain
steady returns and fund retiree benefits in a country with the
world’s fastest-growing aging society and two decades of
slumping markets. It also raises questions about the nation’s
corporate governance after camera maker Olympus Corp.’s
admission that it covered up losses by overpaying advisers. Non-Traditional Strategy Regulators have been investigating AIJ, which invests in
futures and options of equities and bonds, since the end of
January, and discovered that the company has been unable to
explain to investors the current state of the way their money is
being managed, according to the FSA. AIJ is registered in Japan by the FSA as a so-called
discretionary investment manager, which can include fund
managers that employ hedge fund strategies. Pensions view AIJ as a hedge fund because its strategies
aren’t tied to simply buying and selling traditional asset
classes such as bonds and equities. Alternative investments also
include private equity funds, real estate, commodities and
infrastructure. AIJ’s funds have been traced from Japan to the Cayman
Islands , followed by a trust bank in Bermuda and ultimately to
“a major European Bank” in Hong Kong , the Asahi newspaper said
Feb. 25, citing an investigation by Japan’s Securities and
Exchange Surveillance Commission. AIJ kept money-flow records up
to the unidentified bank in Hong Kong and no further records
have been found, the newspaper said. Pension Returns AIJ may have lost most of the 200 billion yen it manages
for companies’ pension plans, the Nikkei newspaper reported Feb.
24, citing unidentified securities investigators. The investigation into Japan’s 263 asset managers may be
one of the biggest into licensed managers in the nation, said
Mitsushige Akino , who oversees about $600 million at Ichiyoshi
Investment Management Co. in Tokyo. The investigation into whether the 263 are disclosing
performances to their clients and how they are managing their
money will begin today, Kyodo News reported. Japan’s financial regulator is also planning to investigate
trust banks that handle pension money as well as corporate
pensions, the Nikkei newspaper reported over the weekend. The regulator penalized at least 35 financial institutions
last year including Citigroup Inc. and UBS AG for breaching
securities rules, according to its website . Weak Market Performance Japanese pension plan returns have been hurt by low bond
yields, an aging population and the world’s worst-performing
stock market in the past 20 years. People 65 years or older will
account for 29 percent of the population in 2020 and almost 40
percent in 2050, while the Nikkei 225 Stock Average (NKY) is at a
quarter of its 1989 peak. The 10-year Japanese government bond
yield is at 0.968 percent, second-lowest after Switzerland . AIJ, led by Kazuhiko Asakawa, was established in April 1989,
and had 120 clients including pension plans with 183.2 billion
yen in assets as of the end of 2010, according to a statement
from the FSA. It has 12 employees. Phone calls to AIJ’s main
office were answered by an automatic recording which didn’t
allow messages to be recorded. Asakawa said the firm’s profits won’t be dependent on the
rise and falls of the markets as it uses a complex financial
technology, the Wall Street Journal reported today, citing his
message on an archived webpage of AIJ. The page is no longer on
its website. ‘Not Enough’ “The size and age of an investment management firm is not
enough to rely on,” said Rory Kennedy , chief operating officer
in Tokyo at Rogers Investment Advisors K.K., which allocates
money to hedge funds. “This incident once again proves the
clear need to use experienced professionals to perform due
diligence when investing in any area in which you are not an
expert.” Asakawa was a former employee at Nomura Holdings Inc. (8604) ,
according to a person familiar with his employment. Keiko Sugai,
a Tokyo-based spokeswoman at Nomura, declined to comment. AIJ’s fund was ranked top among pension funds in 2008, said
Fujio Nakatsuka, a spokesman at Rating & Investment Information
Inc. in Tokyo. He said the rankings were based on responses from
pensions and not what R&I had recommended to investors. The hedge fund industry has come under scrutiny in the past
four years, since the collapse of hedge funds run by Bear
Stearns Cos. in 2007. Bernard Madoff was arrested in 2008 for
operating the largest Ponzi scheme in U.S. history and hedge
fund Galleon Group LLC co-founder Raj Rajaratnam was found
guilty in May on insider-trading charges. Proper Due Diligence “Pension funds need to acquire financial literacy to do
proper due diligence to figure out the risks as it becomes
easier for different types of people to enter the market,” said
Tetsuo Tanimura, the head of hedge fund consulting firm C2G
Advisors Co. Advantest Corp. (6857) , a maker of memory-chip testers, said in a
statement it has 1.7 billion yen, or about 8 percent of its
total corporate pension fund, invested with AIJ. Yaskawa
Electric Corp. (6506) has about 2 percent of its pension money managed
by AIJ and the impact will be limited, said Ayumi Hayashida, a
spokesman at the company. The truck driver pension union in Fukui prefecture has
invested about 300 million yen in AIJ through a brokerage, said
Kazuyuki Hashimoto, an adviser to the retirement plan . Due diligence on hedge funds will probably become stricter,
while the importance of so-called gatekeepers that introduce
investments to funds will increase, said Takafumi Sahoda,
founding president of Darwin Capital Partners Ltd., a Japanese
hedge fund. ‘Massive Failure’ “Pension funds have been reluctant to put money directly
into hedge funds and majority of them have done through fund-of-
hedge funds,” said Tokyo-based Sahoda. “Once the gatekeepers
can start doing their jobs properly, this could actually lead to
an improvement in the industry.” Thirty-two percent of 119 Japanese pension funds wanted to
add alternative investments in the current fiscal year, a survey
in April 2011 by JPMorgan Chase & Co. (JPM) ’s Tokyo-based asset
management unit showed. “If the story coming out is true, then it’s a massive
failure of due diligence,” said Rogers Investment’s Kennedy.
“However, hedge funds play a critical role in modern portfolios
and we must be careful to not condemn all hedge funds out of
hand.” To contact the reporters on this story:
Tomoko Yamazaki in Singapore at
tyamazaki@bloomberg.net ;
Komaki Ito in Tokyo at
kito@bloomberg.net To contact the editor responsible for this story:
Andreea Papuc at
apapuc1@bloomberg.net | 2012 | aij-probe-by-japan-regulator-undermines-pensions-alternative-asset-plans |
Egypt Court Adjourns Trial of Pro-Democracy NGO Workers Until April 26 | By Tarek El-Tablawy and Abdel Latif Wahba | 2012-02-26T15:33:30Z | http://www.bloomberg.com/news/2012-02-26/egypt-trial-of-foreign-pro-democracy-workers-starts-as-clinton-seeks-deal.html | 2 | 26 | 6ac575586f144d70a8d74f9f99bf5564 | An Egyptian court adjourned for two
months the trial of 43 workers for pro-democracy organizations,
including 16 Americans, in a case that has dragged U.S.-Egyptian
relations to their lowest level in years. Fourteen Egyptian defendants appeared in court and pleaded
not guilty to charges including using foreign funds to stoke
unrest and operating without a license. The other accused
workers weren’t present. Judge Mahmoud Shoukry ordered the
adjournment until April 26 and requested the presence of the
remaining defendants. The accused work for five non-governmental organizations,
including two linked to U.S. Congressional leaders. The charges
carry prison terms of as much as five years. U.S. Secretary of State Hillary Clinton has raised the case
twice in the past few days with her Egyptian counterpart,
according to a U.S. official, who spoke to reporters on
condition of anonymity because of the sensitivity of the issue.
Some U.S. lawmakers, including Republican Senator John McCain of
Arizona , have said the allegations are politically motivated and
called for a halt to U.S. aid if the case isn’t resolved. The
U.S. provides $1.3 billion in annual military aid to Egypt . The U.S. hopes to resolve the case within days, the
official said. The Americans include Sam LaHood, son of
Transportation Secretary Ray LaHood. Clinton, speaking to reporters in Morocco , said she was
evaluating today’s court session, adding: “This is a fluid
situation, and there are a lot of moving parts that we have to
fully understand before I go any further than I have.” Destabilize Transition State-run media has sought to characterize the employees’
work as part of a foreign plot to destabilize the transition to
democracy after nearly three decades of authoritarian rule under
President Hosni Mubarak . Egypt’s military rulers have argued
that “hidden hands” were behind much of the unrest following
the ouster of Mubarak last year. Rights groups have dismissed the criticism and called the
moves against the NGOs an attempt to stifle free speech and a
throwback to former regime practices of shifting blame onto
others to distract the country’s 85 million citizens from
domestic problems. “The rhetoric employed by Egyptian authorities in doing so
is increasingly reminiscent of Mubarak-era propaganda,”
International Republican Institute head Lorne Craner said in
testimony before Congress on Feb. 16. LaHood headed the IRI’s
office in Egypt. Barred From Leaving Seven of the Americans remain in Egypt and have been
staying on the grounds of the U.S. Embassy in Cairo since the
charges were filed and they were barred from leaving the
country. Outside the courtroom today, about 100 protesters called
for the release of Omar Abdel-Rahman, the blind Egyptian cleric
imprisoned in the U.S. following the 1993 bombing of the World
Trade Center in New York , in exchange for the U.S. defendants. A
separate group rallied in support of the NGO workers. The trial comes as the country’s military rulers face
mounting pressures over their stewardship of the economy and the
transition to a civilian government. The head of the ruling
military council, Field Marshal Mohamed Hussein Tantawi, today
ordered the parliament to convene on March 3 to elect a
committee to draw up a new constitution. In the wake of the 18-day uprising that ousted Mubarak,
Egypt has run through over 50 percent of its foreign reserves
and is seeking a $3.2 billion loan from the International
Monetary Fund , as well as additional help from the World Bank
and other foreign donors. Crisis Solution During the past few weeks, Tantawi has met with top U.S.
officials, including McCain and General Martin Dempsey, the
chairman of the U.S. Joint Chiefs of Staff, as the U.S. presses
Egyptian officials to find a solution to the crisis. Political power in Egypt resides primarily with the
country’s military leaders although the Muslim Brotherhood and
other Islamist groups have been the victors in recent
parliamentary elections. This year, for the first time, the Obama administration
must certify to Congress that Egypt is making progress in
developing democracy before aid can be released. To contact the reporter on this story:
Tarek Eltablawy in Cairo at
teltablawy@bloomberg.net To contact the editor responsible for this story:
Andrew J. Barden at
barden@bloomberg.net | 2012 | egypt-trial-of-foreign-pro-democracy-workers-starts-as-clinton-seeks-dea |
China’s Billionaire People’s Congress Makes Capitol Hill Look Like Pauper | By Bloomberg News | 2012-02-27T07:21:26Z | http://www.bloomberg.com/news/2012-02-26/china-s-billionaire-lawmakers-make-u-s-peers-look-like-paupers.html
The richest 70 members of China ’s
legislature added more to their wealth last year than the
combined net worth of all 535 members of the U.S. Congress, the
president and his Cabinet, and the nine Supreme Court justices. The net worth of the 70 richest delegates in China’s
National People’s Congress, which opens its annual session on
March 5, rose to 565.8 billion yuan ($89.8 billion) in 2011, a
gain of $11.5 billion from 2010, according to figures from the
Hurun Report, which tracks the country’s wealthy. That compares
to the $7.5 billion net worth of all 660 top officials in the
three branches of the U.S. government. The income gain by NPC members reflects the imbalances in
economic growth in China, where per capita annual income in 2010
was $2,425, less than in Belarus and a fraction of the $37,527
in the U.S. The disparity points to the challenges that China’s
new generation of leaders, to be named this year, faces in
countering a rise in social unrest fueled by illegal land grabs
and corruption. “It is extraordinary to see this degree of a marriage of
wealth and politics,” said Kenneth Lieberthal , director of the
John L. Thornton China Center at Washington ’s Brookings
Institution . “It certainly lends vivid texture to the
widespread complaints in China about an extreme inequality of
wealth in the country now.” Most Powerful The National People’s Congress, whose annual meeting will
run for a week and a half, is legally the highest governmental
body in China. While the legislature, with about 3,000 members,
is often derided as a rubberstamp parliament, its members are
some of China’s most powerful politicians and executives,
wielding power in their home provinces and weighing in on
proposals such as whether to impose a nationwide property tax. “The NPC is not exactly what you would call a center of
power, but being on it certainly gets you deeply engaged in the
political system,” Lieberthal said. Hurun, a Shanghai-based publisher of magazines targeted at
the Chinese luxury consumer, uses publicly available information
such as corporate filings to compile its annual list of the
richest people in China. It then cross-checks that data with the
government’s list of NPC members. Zong Qinghou, chairman of beverage-maker Hangzhou Wahaha
Group (HWGZ) and China’s second-richest person, with a family fortune
of 68 billion yuan, is a member. So is Wu Yajun, chairwoman of
Beijing-based Longfor Properties (LHREZ) Co. She has family wealth of 42
billion yuan, according to the Hurun Report. Jiang’s Pushing Former President Jiang Zemin pushed for the inclusion of
wealthy private entrepreneurs into the Communist Party a decade
ago. Now they have regular access to top party leaders who are
also NPC members. The third-richest person in the NPC, auto-parts magnate Lu
Guanqiu, traveled with Vice President Xi Jinping to the U.S.
during his official visit this month, attending a meeting with
Vice President Joseph Biden and Treasury Secretary Timothy F. Geithner in Washington on Feb. 14. “The rich in China have strong incentive to become ‘within
system’ due to the relative weakness in the rule of law and of
property rights,” Victor Shih, a professor at Evanston,
Illinois-based Northwestern University who studies Chinese
politics and finance, wrote in an e-mail. Being a member of the
NPC “means that one’s commercial or political rival cannot
easily throw one in jail or confiscate one’s property.” Richest Woman Wu, who is China’s richest woman, doesn’t give media
interviews, her spokeswoman said. Lu wasn’t available for an
interview, his spokesman said. Zong wouldn’t comment on the
makeup of the NPC because that’s a matter determined by the
central government, Wahaha spokesman Shan Qining said in a phone
interview. Many of the NPC’s richest members, including Longfor’s Wu,
are executives in real estate, a sector that has spurred
protests and contributed to the rising wealth gap between city
dwellers and farmers. A land grab by a property developer in Wukan, a fishing
town in southern China’s Guangdong province, sparked protests in
December that resulted in the expulsion of its Communist Party
leaders. Premier Wen Jiabao has pledged to crack down on such
land grabs and work to ease wealth disparities. China’s top political leaders, including President Hu
Jintao and Wen, don’t disclose their personal finances or those
of their families. Chinese private executives such as Zong and Lu have built
their fortunes on the back of economic growth that has averaged
10.1 percent in the last 30 years. The U.S. economy expanded by
an average annual rate of 2.7 percent in the same period. Out Of Poverty Regular Chinese have also benefited from the growth of
China’s economy , which surpassed Japan as the world’s second
biggest in 2010. Since introducing free-market policies, China
has lifted 300 million of its 1.3 billion citizens out of
poverty, according to the United Nations . Annual growth of per capita GDP in China was 9.8 percent at
the end of 2010. Per capita GDP has more than doubled since
2000, according to the World Bank . The wealth gap between legislatures holds with
statistically comparable samples. The richest 2 percent of the
NPC | 2 | 26 | 63f0a7ddd5b1457ba3a4186535138eb3 | an average wealth of $323 million. The U.S. figures come from a downloadable database on the
website of the Washington-based Center for Responsive Politics.
The U.S. figures are inflated because the database includes
members of Congress who were retired or defeated in the 2010
elections as well as their replacements. Issa’s Wealth The wealth of members of Congress did increase at a higher
rate than that of their Chinese peers in the most recent
disclosures as U.S. equity markets outperformed China’s. The
average wealth of the richest 2 percent of Congress rose 22
percent in 2010 from 2009. The Standard and Poor’s 500 Index
rose 12.8 percent in 2010. The wealth of the top 2 percent of NPC delegates rose 13
percent in the 2011 Hurun list following a 14.3 percent fall in
the Shanghai Stock Exchange Composite Index in 2010 and a
further 21.7 percent drop last year. Hong Kong ’s Hang Seng
dropped 20 percent in 2011 and the Shenzhen Composite fell 33
percent in the same period. The wealthiest member of the U.S. Congress is
Representative Darrell Issa , the California Republican who had a
maximum wealth of $700.9 million in 2010, according to the
center. If he were in China’s NPC, he would be ranked 40th. Per
capita income in China is about one-sixth the U.S. level when
adjusted for differences in purchasing power. ‘Cozy Relationship’ Financial disclosure forms ask lawmakers and other top U.S.
officials to list the value of their individual assets in
ranges, such as $1,001 to $15,000 or $1,000,001 to $5,000,000.
Bloomberg News used the maximum range of wealth on the U.S.
disclosures to compare with the Chinese NPC. Rupert Hoogewerf , chairman and chief researcher for the
Hurun Report, estimates that for every Chinese billionaire the
company discovers for its list, there is another one it misses,
meaning the gap between the wealth of China’s NPC and the U.S.
Congress may be greater still. “The prevalence of billionaires in the NPC shows the cozy
relationship between the wealthy and the Communist Party,” said
Bruce Jacobs, a professor of Asian languages and studies at
Monash University in Melbourne , Australia . “In all levels of
the system there seem to be local officials in cahoots with
entrepreneurs, enriching themselves, and this has led to a lot
of the demonstrations.” To contact Bloomberg News staff for this story:
Michael Forsythe in Beijing at
mforsythe@bloomberg.net To contact the editor responsible for this story:
Peter Hirschberg at
phirschberg@bloomberg.net | 2012 | china-s-billionaire-lawmakers-make-u-s-peers-look-like-paupers |
Hungary Economic Confidence Improves to Five-Month High From Two-Year Low | By Zoltan Simon | 2012-02-26T23:00:01Z | http://www.bloomberg.com/news/2012-02-26/hungary-economic-confidence-improves-from-2-year-low-in-february.html | 2 | 26 | a244d6d7bf8786e80562c13614d7808849937b14 | Hungary’s economic sentiment index
improved to a five-month high in February after dropping to a
two-year low the previous month as businesses and consumers
became less pessimistic about the future. The index rose to minus 22.5, the highest level since
September, from minus 26.8 in January, the Budapest-based GKI
research institute said today in an e-mailed statement. The
business confidence index increased to minus 12.4 from minus
16.3, while the consumer confidence jumped to minus 51.2 in
February from minus 56.6. Hungary’s currency has been the best-performing in the
world this year since Premier Viktor Orban last month pledged to
come to a “quick” agreement with the European Union and the
International Monetary Fund on a loan. Talks broke down in
December after a dispute over a Hungarian law the institutions
deem to be a threat to central-bank independence. The forint rallied 9.1 percent this year as of 11:03 a.m.
in Budapest on Feb. 24, after falling 16 percent in the second
half of last year, which was the biggest decline in the world in
that period. The government can’t begin formal talks on international
aid until it meets EU and IMF demands to change a new central
bank regulation. The 27-member bloc also requested changes to
the overhauls of the judiciary and data-protection ombudsman’s
office while the IMF demanded “tangible” steps from Orban to
engage on economic policy issues before starting negotiations. The European Commission on Feb. 22 proposed to suspend 495
million euros ($655 million) in development subsidies in 2013 to
press Hungary to narrow its budget deficit in a sustainable way. To contact the reporter on this story:
Zoltan Simon in Budapest at
zsimon@bloomberg.net To contact the editor responsible for this story:
Balazs Penz at
bpenz@bloomberg.net | 2012 | ungary-economic-confidence-improves-from-2-year-low-in-february |
Colombia Captures 34 Alleged Drug Traffickers, Milenio Reports | By Randall Woods | 2012-02-26T14:00:10Z | http://www.bloomberg.com/news/2012-02-26/colombia-captures-34-alleged-drug-traffickers-milenio-reports.html | 2 | 26 | 5c00c536252e448aea2e8499d99de19bcc29afa8 | Colombian police captured 34 alleged
drug traffickers with ties to Mexico ’s Sinaloa cartel, the
newspaper Milenio reported today, citing the head of Colombia ’s
national police, General Oscar Naranjo. Colombian police collaborated in the investigation with
U.S. authorities, who will seek extradition of the accused, the
Mexico City-based newspaper reported on its website. To contact the reporter on this story:
Randall Woods in Santiago at
rwoods13@bloomberg.net To contact the editor responsible for this story:
Joshua Goodman at
jgoodman19@bloomberg.net | 2012 | colombia-captures-34-alleged-drug-traffickers-milenio-reports |
Liverpool Beats Cardiff in Penalty Shootout at Soccer’s Carling Cup Final | By James Cone | 2012-02-26T18:45:32Z | http://www.bloomberg.com/news/2012-02-26/liverpool-beats-cardiff-in-penalty-shootout-at-soccer-s-carling-cup-final.html | 2 | 26 | d2079df8cf41253d1115882c7f6025a8d0a7f6fc | Liverpool beat Cardiff City in a
penalty shootout to win English soccer’s Carling Cup for a
record-extending eighth time. The Reds and Cardiff had ended the match tied at 2-2
following extra time. To contact the editor responsible for this story:
James Cone at
jcone@bloomberg.net | 2012 | iverpool-beats-cardiff-in-penalty-shootout-at-soccer-s-carling-cup-fina |
North Korea’s Kim Urges ‘Powerful’ Retaliation for Any Trespass | By Jun Yang | 2012-02-26T07:39:02Z | http://www.bloomberg.com/news/2012-02-26/north-korea-s-kim-urges-powerful-retaliation-for-any-trespass.html | 2 | 26 | e1043efafb59662934b54fce296912b344d95b6d | North Korean leader Kim Jong Un told
his military to launch a “powerful retaliatory strike” against
any trespass into his nation’s territory, as South Korea and the
U.S. prepare to start military drills tomorrow. Kim made the comment during his visits to military units,
including a battalion responsible for a deadly artillery attack
in 2010 on Yeonpyeong island in the South, state-run Korean
Central News Agency said in a statement dated yesterday. The tours precede the annual “Key Resolve” military
exercises held by the U.S. and South Korea, with the two allies
looking for signals about North Korea’s direction under the new
leader. The communist regime yesterday said it will respond to
the drills with a “sacred war,” maintaining its hostile
rhetoric and repeating routine verbal threats of attacks. South Korea this month held live-fire naval drills in
disputed waters as a North Korean threat of “merciless
punishment” prompted the evacuation of thousands of island
residents nearby. The two Koreas are separated by the world’s
most fortified land border. North Korea must improve its interaction with the South to
make further progress in its relationship with the U.S., Glyn Davies, U.S. special representative, reiterated in Seoul
yesterday. To contact Bloomberg News staff for this story:
Jun Yang in Seoul at
jyang180@bloomberg.net To contact the editor responsible for this story:
Paul Tighe at
ptighe@bloomberg.net | 2012 | north-korea-s-kim-urges-powerful-retaliation-for-any-trespass |
ENRC Chairman Told to Shake Up Board, Sunday Telegraph Reports | By Andrea Gerlin | 2012-02-26T12:07:34Z | http://www.bloomberg.com/news/2012-02-26/enrc-chairman-told-to-shake-up-board-sunday-telegraph-reports.html | 2 | 26 | 79887a8b26a5fe112dd2d786a351d71a8f7ad0f7 | Eurasian Natural Resources Corp. (ENRC)
Chairman Mehmet Dalman has been told to “refresh and revive”
the mining company’s board, the Sunday Telegraph reported,
without saying where it got the information. Dalman will soon hire at least two non-executive directors,
including one to replace him in his role as senior independent
director, and he has had discussions with the company’s majority
shareholders from Kazakhstan about the board’s makeup, the
London-based newspaper said today. A voicemail message left at ENRC’s London office seeking
comment outside business hours wasn’t immediately returned. To contact the reporter on this story:
Andrea Gerlin in London at
agerlin@bloomberg.net To contact the editor responsible for this story:
Mike Harrison at
mharrison5@bloomberg.net | 2012 | enrc-chairman-told-to-shake-up-board-sunday-telegraph-reports |
Radley Chairman, CEO Leave Exponent Bags Unit, Sunday Times Says | By Catherine Airlie | 2012-02-26T10:54:45Z | http://www.bloomberg.com/news/2012-02-26/radley-chairman-ceo-leave-exponent-bags-unit-sunday-times-says.html | 2 | 26 | 826b51ffa0ec2cf5b154068c09c5d947ff4ee34c | Paul Mason left his position as
chairman of Exponent Private Equity LLP’s U.K. luxury-handbag
maker Radley , the Sunday Times reported without saying where it
got the information. Sven Gaede also left his role as chief executive officer at
the company, the newspaper said. Roger Best, Radley’s former
boss, has been brought in as chairman and interim CEO, according
to the article. Radley didn’t respond to a telephone call and e-mail sent
to its head office in London . To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | radley-chairman-ceo-leave-exponent-bags-unit-sunday-times-says |
ECB Won’t Commit to Further LTRO, Asmussen Tells Handelsblatt | By Tony Czuczka | 2012-02-26T16:42:10Z | http://www.bloomberg.com/news/2012-02-26/ecb-won-t-commit-to-further-ltro-asmussen-tells-handelsblatt.html | 2 | 26 | b39c3d4281b2c1e869ae93d74fcb451f40c0d605 | European Central Bank Executive
Board member Joerg Asmussen said the ECB can’t commit to
offering more three-year cash to euro-area banks after its
second batch of loans planned this week, Handelsblatt reported,
citing an interview. The ECB hasn’t decided how much cash to offer in the latest
long-term refinancing operation, Asmussen was quoted as saying.
The second such operation shouldn’t stoke expectations of a
third or fourth one, he said in comments to be published in the
Dusseldorf, Germany-based newspaper tomorrow and e-mailed to
other media in advance. To contact the reporter on this story:
Tony Czuczka in Berlin at
aczuczka@bloomberg.net To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net | 2012 | ecb-won-t-commit-to-further-ltro-asmussen-tells-handelsbla |
Rambourg to Start Verrazzano Fund in Paris, Sunday Times Reports | By Catherine Airlie | 2012-02-26T08:52:46Z | http://www.bloomberg.com/news/2012-02-26/rambourg-to-start-verrazzano-fund-in-paris-sunday-times-reports.html | 2 | 26 | 448a35b51a821a51bbbada7e5c93b550a20c18fc | Guillaume Rambourg, the former
Gartmore Group Ltd. (GRT) trader, will start Verrazzano Capital
Partners, a hedge fund in Paris, on March 1, the Sunday Times
reported, without saying where it got its information. To contact the reporter on this story:
Catherine Airlie in London at
cairlie@bloomberg.net To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | rambourg-to-start-verrazzano-fund-in-paris-sunday-times-reports |
Buffett Is ‘On the Prowl’ for Acquisitions as Cash Hoard Climbs | By Andrew Frye and Noah Buhayar | 2012-02-26T05:01:52Z | http://www.bloomberg.com/news/2012-02-26/buffett-is-on-the-prowl-for-berkshire-acquisitions-as-cash-hoard-climbs.html | 2 | 26 | db628ed1c903400bbc339103ee8a4884 | Warren Buffett , chairman and chief
executive officer of Berkshire Hathaway Inc. (BRK/A) , said he’s “on the
prowl” for large acquisitions after record earnings at the
company’s railroad and energy units helped build cash holdings. Berkshire’s cash hoard increased to $37.3 billion on Dec.
31 from $34.8 billion three months earlier, the Omaha, Nebraska-
based company said yesterday in it its annual report. Fourth-
quarter net income declined 30 percent to $3.05 billion on
smaller gains from Buffett’s derivative bets. Berkshire is seeking “to purchase some large operations
that will give us a further boost,” the billionaire said in his
annual letter to shareholders included in the report. “We now
have eight subsidiaries that would each be included in the
Fortune 500 were they stand-alone companies. That leaves only
492 to go. My task is clear, and I’m on the prowl.” Buffett, 81, has spent more than $35 billion in cash and
stock on takeovers since the end of 2009 including the purchases
of railroad Burlington Northern Santa Fe and engine-additives
maker Lubrizol Corp., both of which had record operating
earnings last year. Buffett is focusing on acquisitions and
buying publicly traded stocks because current yields on bonds,
he said, aren’t enough to compensate for the risk of inflation. Toolmaker Iscar Metalworking, industrial conglomerate
Marmon Group and power producer MidAmerican Energy Holdings (329802Q)
combined with Lubrizol and the railroad to produce pretax profit
of more than $9 billion last year. All were acquired in the past
12 years as Buffett expanded beyond insurance. ‘Fabulous Five’ “Unless the economy weakens in 2012, each of our fabulous
five should again set a record, with aggregate earnings
comfortably topping $10 billion,” said Buffett. The economy is in a “steady and substantial comeback”
that has eluded the housing market, he wrote. Buffett said the
creation of new households will eventually increase demand for
homes, though he was “dead wrong” with his prediction in early
2011 that a recovery would begin within a year or so. Pretax profit in 2011 at Berkshire’s carpet-maker Shaw,
insulation provider Johns Manville, Acme Brick and MiTek, a
maker of building products, was $513 million compared with $1.8
billion in 2006 before the housing slump. Full-year net income slipped to $10.3 billion from $13
billion in 2010 as insurance underwriting profit fell 88 percent
to $154 million. Natural disasters including flooding in
Thailand and the tsunami in Japan fueled claims costs in 2011. Buffett has used his annual reports to promote his company
as a potential acquirer. Berkshire can act quickly on a deal,
provide capital to target firms and allow managers the freedom
to supervise the operations they built, he has said. Wells Fargo Buffett assembled more than 70 operating businesses selling
everything from ice cream to underwear and has said Berkshire
needs more takeovers as the firm generates about $1 billion a
month in net income. He acquired Lubrizol in 2011 for about $9
billion after saying in last year’s letter that “our elephant
gun has been reloaded, and my trigger finger is itchy.” Buffett also accumulated a stake of more than $10 billion
in International Business Machines Corp. (IBM) and invested $5 billion
for preferred shares and warrants in Bank of America Corp. (BAC) , the
lender led by CEO Brian T. Moynihan since early 2010. Berkshire
was already the largest stockholder in rival Wells Fargo & Co. (WFC) “The banking industry is back on its feet, and Wells Fargo
is prospering,” Buffett wrote. “At Bank of America, some huge
mistakes were made by prior management. Brian Moynihan has made
excellent progress in cleaning these up, though the completion
of that process will take a number of years.” Weschler, Combs Buffett said that Ted Weschler and Todd Combs, former hedge
fund managers hired in the past two years to help pick stocks,
will both assist the next Berkshire CEO in evaluating potential
acquisitions. “They have excellent business minds that grasp the
economic forces likely to determine the future of a wide variety
of businesses,” he wrote. “They are aided in their thinking by
an understanding of what is predictable and what is
unknowable.” Buffett and Vice Chairman Charles Munger, 88, are preparing
Berkshire for its next generation of leaders. Buffett said in
the letter that the board is “enthusiastic about my successor
as CEO,” without identifying the person. To contact the reporter on this story:
Andrew Frye in New York at
afrye@bloomberg.net To contact the editor responsible for this story:
Dan Kraut at dkraut2@bloomberg.net | 2012 | buffett-is-on-the-prowl-for-berkshire-acquisitions-as-cash-hoard-climbs |
Iraq to Increase Electricity Imports From Iran, Serri Says | By Kadhim Ajrash and Khalid al-Ansary | 2012-02-26T12:38:04Z | http://www.bloomberg.com/news/2012-02-26/iraq-to-increase-electricity-imports-from-iran-serri-says.html | 2 | 26 | d4687647add2c2090ede0c5b5dd27af72d183939 | Iraq will increase power imports
from neighboring Iran to 1,150 megawatts from 1,000 megawatts a
day, an Electricity Ministry spokesman said. The additional power will be imported through Iraq’s four
lines of supply from Iran “before the coming summer,” Masaab
Serri said in a telephone interview in Baghdad today. Iraq, holder of the world’s fifth-largest oil reserves, is
struggling to rebuild its energy and electricity industry after
years of conflicts, sabotage and sanctions. The Middle East
nation has the capacity to produce about 6,000 megawatts a day,
while demand exceeds 14,000 megawatts, Electricity Minister
Abdul Kareem Aftan said in a Feb. 13 interview. Iraq also receives 250 megawatts a day from three Turkish
ships docked off its southern coast. To contact the reporters on this story:
Kadhim Ajrash through the Dubai newsroom;
Khalid Al-Ansary in the Baghdad through the Dubai newsroom at To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net | 2012 | iraq-to-increase-electricity-imports-from-iran-serri-says |
Al-Mojil Posts Biggest Two-Day Drop as Loss Widens: Riyadh Mover | By Zahra Hankir and Mourad Haroutunian | 2012-02-26T14:16:05Z | http://www.bloomberg.com/news/2012-02-26/al-mojil-posts-biggest-two-day-drop-as-loss-widens-riyadh-mover.html | 2 | 26 | 7b0c1e6fe308f029c7c6776e0bd19ee1da73ac12 | Mohammad Al-Mojil Group Co. (MMG) , a Saudi
Arabian construction services provider, had its biggest two-day
drop on record after its full-year loss widened. The shares slumped 10 percent to 17.2 riyals at the 3:30
p.m. close in Riyadh today, bringing its drop in the past two
days to 19 percent, the biggest such slump since the shares
listed in May 2008. The stock was the biggest decliner by
percentage points on Saudi Arabia’s benchmark Tadawul All Share
Index (SASEIDX) , which advanced 0.2 percent to 7,088.48. “Investors are reacting to the company’s unexpected big
loss,” said Turki Fadaak, head of research at Riyadh-based
Albilad Investment Co. The company said Feb. 22 its net loss for the year was
959.4 million riyals ($256 million) compared with a loss of
179.5 million riyals a year earlier. The losses were “due to
additional costs of materials, equipment and manpower of some of
the ongoing projects in excess of the approved budgets,” the
Dammam, Saudi Arabia-based company said Jan. 18. Al-Mojil has dropped 29 percent this year after a 29
percent surge in 2011 . One analyst recommends investors buy the
stock, while three have a “hold” rating, according to data
compiled by Bloomberg. To contact the reporter on this story:
Zahra Hankir in Dubai at
zhankir@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | al-mojil-posts-biggest-two-day-drop-as-loss-widens-riyadh-mover |
Israel Stocks: Clal Biotechnology, Israel Chemicals, Mellanox | By Shoshanna Solomon | 2012-02-26T13:22:14Z | http://www.bloomberg.com/news/2012-02-26/israel-stocks-clal-biotechnology-israel-chemicals-mellanox.html | 2 | 26 | 0218fb5deac83ff91891cba4f6c884f02d967193 | Israel ’s TA-25 index slid to its
lowest intraday level since Dec. 29, retreating 1 percent to
1,086.75 at 2:13 p.m. in Tel Aviv . The following stocks rose or fell today. Symbols are in
parentheses. Clal Biotechnology Industries Ltd. (CBI) dropped 4.9
percent to 12.80 shekels, the lowest intraday level since
November 2009. The investor in biotechnology companies said
full-year net income fell to 87.3 million shekels ($23 million)
from 351 million shekels in 2010. IDB Holding Corp. (IDBH) declined 8.7 percent to 32.59,
the lowest intraday level since January 1995. The shares have
declined 16 percent, since a government committee called for
holding companies to limit their pyramid structures, raising
speculation they may need to sell assets. The holding company
last week also sold shares. Israel Chemicals Ltd. (ICL) , which extracts minerals
from the Dead Sea to make fertilizer and potash, declined the
most since Dec. 29, dropping 3.3 percent to 41.40 shekels. The
stock jumped 9.7 percent last week, the most since the week
ended July 30. “It seems to be profit taking after a strong
rally of the share most of last week,” said Steven Shein, a
trader at Psagot Investment House Ltd. in Tel Aviv. Mellanox Technologies Ltd. (MLNX) (MLNX IT ) gained 2.6 percent to
144.30 shekels, or the equivalent of $38.25, headed for the
highest close in Tel Aviv since Bloomberg started tracking the
stock in July 2007. The U.S. traded shares of the adapter maker
closed up 2.1 percent at $38.76 in New York on Feb. 24. To contact the reporter on this story:
Shoshanna Solomon in Tel Aviv at
ssolomon22@bloomberg.net To contact the editor responsible for this story:
Claudia Maedler at
cmaedler@bloomberg.net | 2012 | israel-stocks-clal-biotechnology-israel-chemicals-mellanox |