Broadband
Broadband is a type of communication where a single wire can carry more than one type of signal at once, from audio to video frequencies. Cable TV (eg. Foxtel) is one technology that uses broadband data transmission.
Thursday 12 December 2013
BROWSER
Browser
A software program that allows you to surf the Web. The most popular web browsers are Google Chrome, Mozilla Firefox and Internet Explorer.
A software program that allows you to surf the Web. The most popular web browsers are Google Chrome, Mozilla Firefox and Internet Explorer.
Saturday 26 October 2013
Mitsubishi Motors Corp plans to raise around $2 billion in a public share offering
Mitsubishi Motors Corp plans to raise around $2 billion in a public share offering as early as January to pay back top shareholders for a 2004 bailout that enabled its decade-long turnaround, sources familiar with the matter said on Saturday.
The capital raising will also allow the second-tier Japanese automaker to pay dividends for the first time in nearly a decade and a half. And it will maintain close equity ties to the Mitsubishi group to meet the challenges of tightening environmental standards and other technological advances while it lacks a strategic automotive partner.
It is also a milestone in the company's recovery from a defect cover-up scandal early in the last decade and a retreat from European production to focus on fast-growing Southeast Asia, under the guidance of President Osamu Masuko who arrived from Mitsubishi Corp in 2005.
Group companies including Mitsubishi Heavy Industries Ltd , Mitsubishi UFJ Financial Group Inc and Mitsubishi Corp rescued the troubled carmaker in 2004 by taking the bulk of a preferred share offering after a failed tie-up with DaimlerChrysler AG.
Mitsubishi Motors will use the roughly 200 billion yen ($2 billion) it hopes to raise to buy back the majority of those preferred shares at a discounted price and retire them, said the sources, who declined to be named as they were not authorised to speak to the media.
"It was difficult for them to find an alliance partner while the preference shares were hanging over them, but this will let them be a normal company," one of the sources said.
Remaining preferred shares will be converted to ordinary stock.
The 380 billion yen of preferred shares in the hands of Mitsubishi group companies has made it prohibitively costly for Mitsubishi Motors to resume dividend payments.
MITSUBISHI GROUP
Mitsubishi Heavy, Mitsubishi UFJ Financial and trading house Mitsubishi Corp will retain their combined 34 percent minority controlling stake after the buy back and conversion, the sources said, possibly via a purchase of ordinary shares by Mitsubishi Heavy.
Mitsubishi Motors will announce the move when it makes public its latest multi-year management plan on Nov. 5, one of the sources added. That plan is expected to include expanded production in emerging markets and an expanded lineup of SUVs, which currently include the Outlander Sport.
The company said in a statement to the Tokyo Stock Exchange on Saturday that it was considering various options to deal with its preferred shares but no decisions had been made.
The maker of Triton pickups and i-MiEV electric cars, which sells one-quarter of its vehicles in Southeast Asia, this week raised its net profit outlook for the full year to next March by 40 percent to 70 billion yen, but trimmed its revenue outlook by 6.2 percent to 2.13 trillion yen. It said a boost from a weaker yen and cost cuts offset a drop in vehicle sales.
It will announce its second-quarter earnings on Oct. 29, when Masuko is expected to speak.
Mitsubishi Motors' shares jumped more than 7 percent in intraday trade on Friday in their highest volume in a month and a half, although they pulled back by the close to end with a gain of 1.2 percent at 1,036 yen. They nevertheless outperformed Tokyo's benchmark Nikkei average which sank 2.8 percent.
News that Mitsubishi Motors was considering a share issue and other measures to complete its restructuring first emerged in May. Its shares are up 16 percent so far this year, compared with underperforming shares in other second-tier automakers Mazda Motor Corp and Subaru maker Fuji Heavy Industries Ltd, which are two-and-a-half times their value at the start of the year.
The capital raising will also allow the second-tier Japanese automaker to pay dividends for the first time in nearly a decade and a half. And it will maintain close equity ties to the Mitsubishi group to meet the challenges of tightening environmental standards and other technological advances while it lacks a strategic automotive partner.
It is also a milestone in the company's recovery from a defect cover-up scandal early in the last decade and a retreat from European production to focus on fast-growing Southeast Asia, under the guidance of President Osamu Masuko who arrived from Mitsubishi Corp in 2005.
Group companies including Mitsubishi Heavy Industries Ltd , Mitsubishi UFJ Financial Group Inc and Mitsubishi Corp rescued the troubled carmaker in 2004 by taking the bulk of a preferred share offering after a failed tie-up with DaimlerChrysler AG.
Mitsubishi Motors will use the roughly 200 billion yen ($2 billion) it hopes to raise to buy back the majority of those preferred shares at a discounted price and retire them, said the sources, who declined to be named as they were not authorised to speak to the media.
"It was difficult for them to find an alliance partner while the preference shares were hanging over them, but this will let them be a normal company," one of the sources said.
Remaining preferred shares will be converted to ordinary stock.
The 380 billion yen of preferred shares in the hands of Mitsubishi group companies has made it prohibitively costly for Mitsubishi Motors to resume dividend payments.
MITSUBISHI GROUP
Mitsubishi Heavy, Mitsubishi UFJ Financial and trading house Mitsubishi Corp will retain their combined 34 percent minority controlling stake after the buy back and conversion, the sources said, possibly via a purchase of ordinary shares by Mitsubishi Heavy.
Mitsubishi Motors will announce the move when it makes public its latest multi-year management plan on Nov. 5, one of the sources added. That plan is expected to include expanded production in emerging markets and an expanded lineup of SUVs, which currently include the Outlander Sport.
The company said in a statement to the Tokyo Stock Exchange on Saturday that it was considering various options to deal with its preferred shares but no decisions had been made.
The maker of Triton pickups and i-MiEV electric cars, which sells one-quarter of its vehicles in Southeast Asia, this week raised its net profit outlook for the full year to next March by 40 percent to 70 billion yen, but trimmed its revenue outlook by 6.2 percent to 2.13 trillion yen. It said a boost from a weaker yen and cost cuts offset a drop in vehicle sales.
It will announce its second-quarter earnings on Oct. 29, when Masuko is expected to speak.
Mitsubishi Motors' shares jumped more than 7 percent in intraday trade on Friday in their highest volume in a month and a half, although they pulled back by the close to end with a gain of 1.2 percent at 1,036 yen. They nevertheless outperformed Tokyo's benchmark Nikkei average which sank 2.8 percent.
News that Mitsubishi Motors was considering a share issue and other measures to complete its restructuring first emerged in May. Its shares are up 16 percent so far this year, compared with underperforming shares in other second-tier automakers Mazda Motor Corp and Subaru maker Fuji Heavy Industries Ltd, which are two-and-a-half times their value at the start of the year.
Thursday 24 October 2013
Portugal's CGD to sell stake in Portugal Telecom
Portugal's state-owned bank Caixa Geral de Depositos will sell its outstanding 6.11 percent stake in Portugal Telecom in a private sale as part of plans to sell non-core assets, the bank said on Thursday.
The sale of 54.77 million shares will be carried out via an accelerated bookbuilding process aimed at certain investors.
The final terms of the offering are expected to be announced after the process is completed later on Thursday.
The state-owned bank has also been selling off other assets like its healthcare arm under the terms of Portugal's European Union/IMF bailout. It is now in the process of privatising its insurance unit.
Portugal Telecom shares closed at 3.583 euros on Wednesday. The stock was suspended from trading on Thursday, awaiting the terms of the sale.
The stock has jumped from near all-time lows of 2.71 euros in July, partly in response to the group's plan, announced earlier this month, to join forces with Brazil's Grupo Oi SA and form a new company with more than 100 million subscribers.
Credit Suisse and CGD's investment bank Caixa Banco de Investimento are acting as joint bookrunners in the equity sale, CGD said.
The sale of 54.77 million shares will be carried out via an accelerated bookbuilding process aimed at certain investors.
The final terms of the offering are expected to be announced after the process is completed later on Thursday.
The state-owned bank has also been selling off other assets like its healthcare arm under the terms of Portugal's European Union/IMF bailout. It is now in the process of privatising its insurance unit.
Portugal Telecom shares closed at 3.583 euros on Wednesday. The stock was suspended from trading on Thursday, awaiting the terms of the sale.
The stock has jumped from near all-time lows of 2.71 euros in July, partly in response to the group's plan, announced earlier this month, to join forces with Brazil's Grupo Oi SA and form a new company with more than 100 million subscribers.
Credit Suisse and CGD's investment bank Caixa Banco de Investimento are acting as joint bookrunners in the equity sale, CGD said.
Tuesday 13 August 2013
FBI arrests two in $140 mln penny stock fraud
Federal prosecutors on Tuesday said they have madearrests in an international penny stock scheme that involved fraudulently inflating shares prices and trading volumes.
The fraud generated more than $140 million through various brokerage and bank accounts, according to a statement from the office of U.S. Attorney Loretta Lynch inBrooklyn.
Two people, Joseph Manfredonia, 45, of New Jersey, and Cort Poyner, 44, of Florida, were arrested on Tuesday morning, according to Peter Donald, an FBI spokesman.
A superseding indictment filed earlier this month also names four Canadians and three other U.S. citizens allegedly involved in the scheme.
The scheme involved fraudulently inflating share prices and trading volumes ofcertain penny stocks. The defendants also operated a so-called advance fee scheme, making false promises to investors to induce them to pay fees for non-existent services to sell their illiquid penny stock shares, according to the indictment.
Both schemes were allegedlyorchestrated by Sandy Winick, a Canadian who has lived in China, Thailand, Vietnam and the United States, according to the indictment.
Manfredonia used phony press releases to promote the penny stocks and recruited others to manipulate their prices and trading volumes, according to the indictment.
Poyner bribed brokers to purchase the penny stocks onbehalf of their clients, according to the indictment.
Gregory Curry and Kolt Curry, Canadians who also lived at various times in Thailand, managed call centers, and prepared false letters, websites and e-mail accounts used to deceive potential and actual victims. Kolt Curry also made phone calls to potential clients.
Gregory Ellis, a Canadian, acted as president of several companies that issued the penny stocks and called potential customers as part of the advance fee scheme, according to the indictment.
Gary Kershner, a U.S. citizen who lived in Arizona and Kansas, made false statementsto regulators and investigators, and created fraudulent documents, according to the indictment.
Songkram Roy Sahachaisere, aU.S. citizen who lived in California, promoted the penny stocks through Investsource Inc, a public relations firm he owned, according to the indictment.
William Seals, of California, bought and sold several of the penny stocks to manipulate their share price and market volume, according to the indictment.
Their lawyers could not be reached immediately for comment.
Winick has run into trouble with regulators in the past.
In 2010, the U.S. Securities and Exchange Commission won a default judgment against him after he failed to respond to a complaint accusing him of creating dozens of shell companies under a public company he controlled, First Canadian American Holding Corp, laterknown as Blackout Media Corp.
The SEC accused Winick of creating 59 subsidiaries in Blackout with no legitimate business purpose except to sell unregistered shares in the companies and pocketingthe proceeds.
In 2012, he was ordered to disgorge $3.2 million in ill-gotten gains and was permanently barred from thepenny stock market, among other penalties, according to court documents.
The fraud generated more than $140 million through various brokerage and bank accounts, according to a statement from the office of U.S. Attorney Loretta Lynch inBrooklyn.
Two people, Joseph Manfredonia, 45, of New Jersey, and Cort Poyner, 44, of Florida, were arrested on Tuesday morning, according to Peter Donald, an FBI spokesman.
A superseding indictment filed earlier this month also names four Canadians and three other U.S. citizens allegedly involved in the scheme.
The scheme involved fraudulently inflating share prices and trading volumes ofcertain penny stocks. The defendants also operated a so-called advance fee scheme, making false promises to investors to induce them to pay fees for non-existent services to sell their illiquid penny stock shares, according to the indictment.
Both schemes were allegedlyorchestrated by Sandy Winick, a Canadian who has lived in China, Thailand, Vietnam and the United States, according to the indictment.
Manfredonia used phony press releases to promote the penny stocks and recruited others to manipulate their prices and trading volumes, according to the indictment.
Poyner bribed brokers to purchase the penny stocks onbehalf of their clients, according to the indictment.
Gregory Curry and Kolt Curry, Canadians who also lived at various times in Thailand, managed call centers, and prepared false letters, websites and e-mail accounts used to deceive potential and actual victims. Kolt Curry also made phone calls to potential clients.
Gregory Ellis, a Canadian, acted as president of several companies that issued the penny stocks and called potential customers as part of the advance fee scheme, according to the indictment.
Gary Kershner, a U.S. citizen who lived in Arizona and Kansas, made false statementsto regulators and investigators, and created fraudulent documents, according to the indictment.
Songkram Roy Sahachaisere, aU.S. citizen who lived in California, promoted the penny stocks through Investsource Inc, a public relations firm he owned, according to the indictment.
William Seals, of California, bought and sold several of the penny stocks to manipulate their share price and market volume, according to the indictment.
Their lawyers could not be reached immediately for comment.
Winick has run into trouble with regulators in the past.
In 2010, the U.S. Securities and Exchange Commission won a default judgment against him after he failed to respond to a complaint accusing him of creating dozens of shell companies under a public company he controlled, First Canadian American Holding Corp, laterknown as Blackout Media Corp.
The SEC accused Winick of creating 59 subsidiaries in Blackout with no legitimate business purpose except to sell unregistered shares in the companies and pocketingthe proceeds.
In 2012, he was ordered to disgorge $3.2 million in ill-gotten gains and was permanently barred from thepenny stock market, among other penalties, according to court documents.
Airline Stocks Drop On US Air-American Merger Suit
Share
The Department of Justice, six state attorneys general and the District of Columbia filed an antitrust suit against US Airways( LCC) and American Airlines' parent, AMR Corp., saying their proposed merger would lessen competition.
The pairing would create theworld's largest airline, worth about $11 billion, and cap a decade of airline mergers that's left about 85% of U.S. fliers with just four airlines tochoose from.
The announcement of the action came a week after the airlines announced they'd received clearance from the European Union for their merger.
Shares of US Airways were down 12% Tuesday amid a sector rout in the stock market todayUS Air and AMR, which is emerging from bankruptcy, announced the deal on Feb. 14, and antitrust regulators began a review process to determine whether further industry consolidation wouldboost ticket prices and hurt consumers.
U.S. Attorney General Eric Holder said in statement Tuesday, "This transaction would result in consumers paying the price — in higherairfares, higher fees and fewer choices."
The carriers have said the new company would have synergies that would enable it to keep costs down.
Southwest became one of the big four airlines with its 2011 acquisition of AirTran Airways. Among other recentpairings, Delta bought Northwest Airlines, and United Continental was formed by the merger of United and Continental in 2010.
The Department of Justice, six state attorneys general and the District of Columbia filed an antitrust suit against US Airways( LCC) and American Airlines' parent, AMR Corp., saying their proposed merger would lessen competition.
The pairing would create theworld's largest airline, worth about $11 billion, and cap a decade of airline mergers that's left about 85% of U.S. fliers with just four airlines tochoose from.
The announcement of the action came a week after the airlines announced they'd received clearance from the European Union for their merger.
Shares of US Airways were down 12% Tuesday amid a sector rout in the stock market todayUS Air and AMR, which is emerging from bankruptcy, announced the deal on Feb. 14, and antitrust regulators began a review process to determine whether further industry consolidation wouldboost ticket prices and hurt consumers.
U.S. Attorney General Eric Holder said in statement Tuesday, "This transaction would result in consumers paying the price — in higherairfares, higher fees and fewer choices."
The carriers have said the new company would have synergies that would enable it to keep costs down.
Southwest became one of the big four airlines with its 2011 acquisition of AirTran Airways. Among other recentpairings, Delta bought Northwest Airlines, and United Continental was formed by the merger of United and Continental in 2010.
Monday 1 July 2013
ALP
Authority for Local Purchase: granted by the commissionerof Administration to an individual who has successfully completed all requirements established by the Materials Management Division.
ALTERNATE RESPONSE
A substitute response; an intentional substantive variation to a basic provision or clause of a solicitation by avendor.
ADVERTISE
ADVERTISE
To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conformto the legal requirements imposed by established laws,rules, policies and procedures to inform the public.
To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conformto the legal requirements imposed by established laws,rules, policies and procedures to inform the public.
ADDENDUM
ADDENDUM
An addition or supplement to a document; e.g., items or information added to a procurement document.
An addition or supplement to a document; e.g., items or information added to a procurement document.
ACQUISITION
ACQUISITION
The act of acquiring goods and services (including construction) for the use of a governmental activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources,solicitation of procurement, solicitation for offers, award of contract, financing, contraction administration, and related functions.
The act of acquiring goods and services (including construction) for the use of a governmental activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources,solicitation of procurement, solicitation for offers, award of contract, financing, contraction administration, and related functions.
ACCEPTANCE
ACCEPTANCE
The act of accepting by an authorized representative; anindication of a willingness to pay; the assumption of a legal obligation by a party tothe terms and conditions of acontract.
The act of accepting by an authorized representative; anindication of a willingness to pay; the assumption of a legal obligation by a party tothe terms and conditions of acontract.
Tuesday 25 June 2013
Greece's Piraeus Bank tops minimum recap target in rights issue
Greece's Piraeus Bank will raise more than 19.5 percent of the funds it needs to plug a 7.33 billion euro capital hole from private investors in a rights offering that ends later on Tuesday, a senior bank official told Reuters.
Piraeus is the third major Greek lender, after Alpha and National Bank, to raise at least 10 percent of its common equity issue from private investors, a requirement under a recapitalization program forbanks to stay privately run.
"Private sector take-up willbe more than 19.5 percent,near 20 percent," said a senior banker at Piraeus who declined to be named. Meeting the minimum threshold meansPiraeus will not need to resort to issuing costly contingent convertible bonds, or CoCos.
Piraeus is the third major Greek lender, after Alpha and National Bank, to raise at least 10 percent of its common equity issue from private investors, a requirement under a recapitalization program forbanks to stay privately run.
"Private sector take-up willbe more than 19.5 percent,near 20 percent," said a senior banker at Piraeus who declined to be named. Meeting the minimum threshold meansPiraeus will not need to resort to issuing costly contingent convertible bonds, or CoCos.
Saturday 22 June 2013
UBS AG will surrender its Indian banking license and close its banking unit, covering fixed income, forex operations and credit services,
(Reuters) - Swiss bank UBSAG will surrender its Indian banking license and close its banking unit, covering fixed income, forex operations and creditservices, a source with direct knowledge of the matter told Reuters on Saturday.
However, UBS will continue its corporate client service business, which includes mergers and acquisitions, equities and debt capital market services, said the source, who declined to be identified as the information was not yet public.
"That doesn't mean that we are closing down our India operations. We will be closing a very small business unit, to focus on our key strength," said thesource. "It's part of our global strategy."
A UBS spokesman declined to comment.
UBS has a full-fledged banking license in India with a single branch in Mumbai and was focusing on the wealth management business, covering foreign exchange, fixed income and credit services.
Indian newspapers reported on Saturday that UBS would surrender its banking license.
Earlier this year, Morgan Stanley sold its private wealth management business to Standard Chartered, in a sign of growing consolidation of Asia's wealth management industry, which is struggling with rising regulatory costs and wafer-thin advisory fees.. (Reporting by Indulal PM; Editing by Clarence Fernandez)
However, UBS will continue its corporate client service business, which includes mergers and acquisitions, equities and debt capital market services, said the source, who declined to be identified as the information was not yet public.
"That doesn't mean that we are closing down our India operations. We will be closing a very small business unit, to focus on our key strength," said thesource. "It's part of our global strategy."
A UBS spokesman declined to comment.
UBS has a full-fledged banking license in India with a single branch in Mumbai and was focusing on the wealth management business, covering foreign exchange, fixed income and credit services.
Indian newspapers reported on Saturday that UBS would surrender its banking license.
Earlier this year, Morgan Stanley sold its private wealth management business to Standard Chartered, in a sign of growing consolidation of Asia's wealth management industry, which is struggling with rising regulatory costs and wafer-thin advisory fees.. (Reporting by Indulal PM; Editing by Clarence Fernandez)
Friday 7 June 2013
Basic elements of the unqualified audit report.
(a) Basic elements of the unqualified audit report.
Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
1. Title
Audit reports should be addressed to the members of the company on whose behalf the audit is undertaken.
2. Introductory paragraph
It identifies the financial statements audited to distinguish such information from other documents that have not been subject to audit e.g. chairman’s report.
This paragraph also refers to the accounting convention under which the financial statements have been prepared.
3. Statement of responsibility of directors and auditors. This states that it is the responsibility of the directors to prepare financial statements that show a true and fair view.
4. Basis of opinion (scope paragraph)
Audit carried out in accordance with IAS, ISA and Company’s Act requirement and other statutory requirements.
5. A statement that the audit was planned and performed to obtain reasonable assurance that financial statements are free from material misstatements.
6. It should describe an audit as including:
a. Examining on a test basis evidence to support the financial statement amounts and disclosures.
b. Assessing the accounting policies used in preparing the financial statements
c. Assessing the significant estimates made by directors in preparation of financial statements.
d. Evaluating the overall financial statement presentation.
7. It should clearly state the auditor’s opinion as to whether the financial statements give a true and fair view in accordance with financial reporting framework and their compliance with statutory requirements. In particular whether the balance sheet and the profit and loss account show a true and fair view of the state of the financial position of the company and its financial performance.
8. It should date the report as of audit completion date i.e. when the auditor receives all evidence required to support his opinion.
9. It should be signed in the audit firm’s name and should name the audit firm office.
b) The ISA attempt to ensure that the report of the auditors is clearly understood by giving guidelines to auditors as to how the report should be constructed and what details it
Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
1. Title
Audit reports should be addressed to the members of the company on whose behalf the audit is undertaken.
2. Introductory paragraph
It identifies the financial statements audited to distinguish such information from other documents that have not been subject to audit e.g. chairman’s report.
This paragraph also refers to the accounting convention under which the financial statements have been prepared.
3. Statement of responsibility of directors and auditors. This states that it is the responsibility of the directors to prepare financial statements that show a true and fair view.
4. Basis of opinion (scope paragraph)
Audit carried out in accordance with IAS, ISA and Company’s Act requirement and other statutory requirements.
5. A statement that the audit was planned and performed to obtain reasonable assurance that financial statements are free from material misstatements.
6. It should describe an audit as including:
a. Examining on a test basis evidence to support the financial statement amounts and disclosures.
b. Assessing the accounting policies used in preparing the financial statements
c. Assessing the significant estimates made by directors in preparation of financial statements.
d. Evaluating the overall financial statement presentation.
7. It should clearly state the auditor’s opinion as to whether the financial statements give a true and fair view in accordance with financial reporting framework and their compliance with statutory requirements. In particular whether the balance sheet and the profit and loss account show a true and fair view of the state of the financial position of the company and its financial performance.
8. It should date the report as of audit completion date i.e. when the auditor receives all evidence required to support his opinion.
9. It should be signed in the audit firm’s name and should name the audit firm office.
b) The ISA attempt to ensure that the report of the auditors is clearly understood by giving guidelines to auditors as to how the report should be constructed and what details it
US Jobless Rate Rises To 7.6% as Economy Adds 175,000 Jobs
WASHINGTON -- U.S. employers stepped up hiringin May, a sign the economy was growing modestly but not strong enough to convince the Federal Reserve to scale back the amount of cash it is pumpinginto the banking system.
The United States added 175,000 jobs last month, just above the median forecast ina Reuters poll, Labor Department data showed on Friday.
The unemployment rate ticked a tenth of a percentage point higher to 7.6 percent, with the increase actually giving a relatively hopeful sign as it was driven by more workers entering the labor force.
Still, after a winter in which the economy seemed to be turning a corner, May was the third straight month that payrolls outside the farm sector increased by less than 200,000. That could heighten concerns government austerity this year is sapping vigor from the economy, andmight dampen speculation the Fed might soon trim bond purchases aimed at lowering interest rates and boosting employment.
"The labor market may not be as strong as we thought," Kevin Cummins, an economist at UBS in Stamford, Connecticut, said ahead of the data's release.
Officials at the U.S. central bank have intimated they could be close to reducing bond purchases despite modest economic growth, which is not expected to pickup until late in the year when the sting from government spending cuts begins to fade.
Budget cuts have led to hiring freezes at many government agencies, and attrition could be slowly reducing payrolls. Government payrolls declined by 3,000 in May.
Lasting Damage
About 4.4 million Americans have been unemployed for more than six months, roughly 3 million more than pre-recession levels. The longer workers are out of a job , the greater the risk theybecome essentially unemployable. That could deal lasting damage to the economy and has lent urgency to the Fed's efforts to stimulate growth.
Still, May's pace of job growth is right around the average for the prior 12 months. Over that period, the jobless rate fell about half a percentage point and the ranks of the long-term unemployed declined by about 1 million people.
"It's progress that's too slow,but it's progress nonetheless," Guy Berger, aneconomist at RBS, also in Stamford, said before the data was released.
More: Suicide Rate Jumps, Economy To Blame?
Even the increase in the unemployment rate had a bright side. The share of the population in the labor force -- which includes people who are either employed or looking for work -- rose to 63.4 percent. That was driven by 420,000 workers entering the work force. Thatis good news because some of the recent drop in the jobless rate has been due to workers leaving the labor force, either because they retired, went back to school or gave up looking for a job.
The report showed the length of the average workweek held steady at 34.5 hours, although total hours worked in the economy ticked 0.1 percent higher.
At the same time, U.S. factories are feeling the pinch from Europe's debt crisis, which has sent a chill over the global economy. Manufacturing employment declined by 8,000 jobs last month.
After barely growing in the last three months of 2012, the U.S. economy expanded at a moderate 2.4 percent annual rate in the first quarter but lost momentum as the quarter drew to a close. Most economists look for growth of around 1.5 percent in the current quarter.Fed officials next meet June 18-19 and are widely expected to keep purchasing $85 billion in bonds a month. Many economists don't expect the job market to be strong enough for the Fed to beginscaling back its bond purchases before December.
The United States added 175,000 jobs last month, just above the median forecast ina Reuters poll, Labor Department data showed on Friday.
The unemployment rate ticked a tenth of a percentage point higher to 7.6 percent, with the increase actually giving a relatively hopeful sign as it was driven by more workers entering the labor force.
Still, after a winter in which the economy seemed to be turning a corner, May was the third straight month that payrolls outside the farm sector increased by less than 200,000. That could heighten concerns government austerity this year is sapping vigor from the economy, andmight dampen speculation the Fed might soon trim bond purchases aimed at lowering interest rates and boosting employment.
"The labor market may not be as strong as we thought," Kevin Cummins, an economist at UBS in Stamford, Connecticut, said ahead of the data's release.
Officials at the U.S. central bank have intimated they could be close to reducing bond purchases despite modest economic growth, which is not expected to pickup until late in the year when the sting from government spending cuts begins to fade.
Budget cuts have led to hiring freezes at many government agencies, and attrition could be slowly reducing payrolls. Government payrolls declined by 3,000 in May.
Lasting Damage
About 4.4 million Americans have been unemployed for more than six months, roughly 3 million more than pre-recession levels. The longer workers are out of a job , the greater the risk theybecome essentially unemployable. That could deal lasting damage to the economy and has lent urgency to the Fed's efforts to stimulate growth.
Still, May's pace of job growth is right around the average for the prior 12 months. Over that period, the jobless rate fell about half a percentage point and the ranks of the long-term unemployed declined by about 1 million people.
"It's progress that's too slow,but it's progress nonetheless," Guy Berger, aneconomist at RBS, also in Stamford, said before the data was released.
More: Suicide Rate Jumps, Economy To Blame?
Even the increase in the unemployment rate had a bright side. The share of the population in the labor force -- which includes people who are either employed or looking for work -- rose to 63.4 percent. That was driven by 420,000 workers entering the work force. Thatis good news because some of the recent drop in the jobless rate has been due to workers leaving the labor force, either because they retired, went back to school or gave up looking for a job.
The report showed the length of the average workweek held steady at 34.5 hours, although total hours worked in the economy ticked 0.1 percent higher.
At the same time, U.S. factories are feeling the pinch from Europe's debt crisis, which has sent a chill over the global economy. Manufacturing employment declined by 8,000 jobs last month.
After barely growing in the last three months of 2012, the U.S. economy expanded at a moderate 2.4 percent annual rate in the first quarter but lost momentum as the quarter drew to a close. Most economists look for growth of around 1.5 percent in the current quarter.Fed officials next meet June 18-19 and are widely expected to keep purchasing $85 billion in bonds a month. Many economists don't expect the job market to be strong enough for the Fed to beginscaling back its bond purchases before December.
Saturday 11 May 2013
United States's yawning annual budget deficit narrowed in April
THE United States's yawning annual budget deficit narrowed in April as government coffers brimmed with the largest monthly surplus in five years, official data shows.
The federal budget had a surplus of$US112.9 billion ($A112.39 billion) forthe month of April, astax payments surged ahead the mid-month due date for annual income tax filings for 2012, according to Treasury Department numbers released on Friday.
The surplus was almost double the$US59.1 billion surplus registered in April 2012.
Over the first seven months of the fiscal year, the US budget deficit was $US487.6 billion, 32 per cent smaller than the October-April 2012 period.
Revenues leaped 28 per cent in April froma year ago, to$US406.7 billion, helped in part by January 1 increases inpayroll and other taxes.
Expenditures fell a hefty 13 per cent to$US293.8 billion in the second month of severe "sequester" spending cuts, aimed at slashing $US85 billion through September.
"The improved budget deficit will give the Treasury more wiggle room tofinance government programs should Congress fail to raise the debt ceiling whenthe current suspension of this limit on government borrowing expires onMay 19," said Sal Guatieri of BMO Capital Markets.
The federal budget had a surplus of$US112.9 billion ($A112.39 billion) forthe month of April, astax payments surged ahead the mid-month due date for annual income tax filings for 2012, according to Treasury Department numbers released on Friday.
The surplus was almost double the$US59.1 billion surplus registered in April 2012.
Over the first seven months of the fiscal year, the US budget deficit was $US487.6 billion, 32 per cent smaller than the October-April 2012 period.
Revenues leaped 28 per cent in April froma year ago, to$US406.7 billion, helped in part by January 1 increases inpayroll and other taxes.
Expenditures fell a hefty 13 per cent to$US293.8 billion in the second month of severe "sequester" spending cuts, aimed at slashing $US85 billion through September.
"The improved budget deficit will give the Treasury more wiggle room tofinance government programs should Congress fail to raise the debt ceiling whenthe current suspension of this limit on government borrowing expires onMay 19," said Sal Guatieri of BMO Capital Markets.
Thursday 9 May 2013
Debt Equity Finance information: Closed-End Investment Fund
Debt Equity Finance information: Closed-End Investment Fund: An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Assets of a c...
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Monday 6 May 2013
Bain Capital and Golden GateCapital Buys BMC for $6.9 Billion
Under the deal terms, the buyers’ group, which includes the Government of Singapore Investment Corporation and InsightVenture Partners, will pay $46.25 a share in cash.
That represents a 14 percent premium to BMC’s share price on May 11, 2012, the last business day before the company disclosed that Elliott Management had taken a big stake – now up to about 9.6 percent – and was urging a sale.After initially resisting Elliott, the two sides reached a compromise, with Elliott gaining two board seats and BMC beginning to explore a sale last fall.
A number of buyout firms emerged during the auction process overrecent months, though by last week the Bain and Golden Gate consortium took the lead.
“After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, aswell as a premium to our unaffected share price,” Robert E. Beauchamp, BMC’s chairman and chief executive, said in a statement.
Jesse Cohn, the Elliott portfolio manager who led the firm’s campaign,added: “Elliott applaudsthe BMC Software boardand executive leadership for delivering this value-maximizing outcome for stockholders, which both contains a go-shopprovision and reflects what we believe is a substantial premium to BMC’s unaffected stock price.”
As part of the deal, BMCwill have 30 days to try to find higher bids.
Credit Suisse , the Royal Bank of Canada and Barclays will provide debt financing.
BMC was advised by Morgan Stanley , Bank ofAmerica Merrill Lynch and the law firm Wachtell, Lipton, Rosen& Katz. The investors received financial advice from Qatalyst Partners, the boutique bank run by Frank P. Quattrone ; Credit Suisse;RBC Capital Markets; and Barclays.
The investor group was counseled by Kirkland& Ellis and PricewaterhouseCoopers.
That represents a 14 percent premium to BMC’s share price on May 11, 2012, the last business day before the company disclosed that Elliott Management had taken a big stake – now up to about 9.6 percent – and was urging a sale.After initially resisting Elliott, the two sides reached a compromise, with Elliott gaining two board seats and BMC beginning to explore a sale last fall.
A number of buyout firms emerged during the auction process overrecent months, though by last week the Bain and Golden Gate consortium took the lead.
“After a thorough review of strategic alternatives, the BMC board of directors is pleased to reach this agreement, which provides shareholders with immediate and substantial cash value, aswell as a premium to our unaffected share price,” Robert E. Beauchamp, BMC’s chairman and chief executive, said in a statement.
Jesse Cohn, the Elliott portfolio manager who led the firm’s campaign,added: “Elliott applaudsthe BMC Software boardand executive leadership for delivering this value-maximizing outcome for stockholders, which both contains a go-shopprovision and reflects what we believe is a substantial premium to BMC’s unaffected stock price.”
As part of the deal, BMCwill have 30 days to try to find higher bids.
Credit Suisse , the Royal Bank of Canada and Barclays will provide debt financing.
BMC was advised by Morgan Stanley , Bank ofAmerica Merrill Lynch and the law firm Wachtell, Lipton, Rosen& Katz. The investors received financial advice from Qatalyst Partners, the boutique bank run by Frank P. Quattrone ; Credit Suisse;RBC Capital Markets; and Barclays.
The investor group was counseled by Kirkland& Ellis and PricewaterhouseCoopers.
Thursday 2 May 2013
European Central Bank has cut rates to a record low .
The central bank, meeting in Bratislava, cut its benchmark interest rate to 0.5 percent from 0.75 percent, which was already a record low. It was the first change in interest rates since July 2012 and the bank’s fourth cut since Mario Draghi took over as its president in November 2011.
The central bank will continue providing unlimited loans to banksat the benchmark interest rate “as long as needed” and at least until mid-2014, Mr. Draghi said at a news conference after the announcement.
Even at its new low of 0.5 percent, the European Central Bank’sbenchmark rate remainshigher than the 0.25 percent rate the FederalReserve has had in place since late 2008. On Wednesday, the Fedsaid it would maintain its stimulus campaign , buying $85 billion a month in Treasury and mortgage-backed securities. The Fed added that it would consider adjusting its efforts to spur growth and reduce unemployment in the United States.
A cut by the European Central Bank was widelyexpected after a series of economic indicators in recent weeks foreshadowing an extended downturn in the euro zone, with recession even threatening the seemingly unstoppable German economy. On Thursday, two stalwarts of corporate Germany, BMW and Siemens, warned of lower profits for 2013 because of the downturn in European markets.
The central bank will continue providing unlimited loans to banksat the benchmark interest rate “as long as needed” and at least until mid-2014, Mr. Draghi said at a news conference after the announcement.
Even at its new low of 0.5 percent, the European Central Bank’sbenchmark rate remainshigher than the 0.25 percent rate the FederalReserve has had in place since late 2008. On Wednesday, the Fedsaid it would maintain its stimulus campaign , buying $85 billion a month in Treasury and mortgage-backed securities. The Fed added that it would consider adjusting its efforts to spur growth and reduce unemployment in the United States.
A cut by the European Central Bank was widelyexpected after a series of economic indicators in recent weeks foreshadowing an extended downturn in the euro zone, with recession even threatening the seemingly unstoppable German economy. On Thursday, two stalwarts of corporate Germany, BMW and Siemens, warned of lower profits for 2013 because of the downturn in European markets.
Wednesday 1 May 2013
Tips to Prevent Credit Card Fraud
credit card fraud hasbecome a $6 billion problemfor businesses, increasing by 87 percent since 2010. As incidents of data breaches and credit card fraud continue to grow, businessesmust be more aware in protecting themselves.
To help businesses guard against such issues, Rob Bertke, senior vice president of research and development at Sage North America, offers the followingtips to businesses of all sizes to help them stay protected.
Immediately deal with any breach — It's critical to understand that even if all cautious, conservative steps are taken, and the best payment-processing securityis installed, a breach can still occur.
If it does, you must have detailed credit card sales records to refer back to as a means of retracing your steps. This will help in determining when and where the breach took placeand therefore mitigate the potential for additional losses. Furthermore, a properassessment of the initial attack may ultimately provide a trail back to the source of the data breach .
Maintain PCI Compliance — Not only is it against card brand regulations if you're not Payment Card Industry (PCI)-compliant when accepting credit or debit cards, but it's also an absolute must in today's economic climate.
Make certain your payment-processing software security is current and is PA-DSS (Payment Application Data Security Standard)-certified, and that your business receives its PCI-DSS (Payment Card Industry Data Security Standard) certification.
PCI certification provides a level of confidence and assurance that a processor has followed and passed a robust set of best practices for securing the information being processed when credit card payments are made.
Use end-to-end encryption for all sensitive data — End-to-end encryption (E2EE) essentially boils downto scrambling the data sent from one device to another. It starts with your payment capture devices, and goes allthe way to the transaction being authorized.
E2EE technology prevents the card account data from being stolen electronically and lessens the cost and impact for your business to become PCI-certified. A company's mobile payment devices, credit card terminals, software applications and online payment portals need built-in encryption functionality when transmitting customer information.
Prevent tampering — Make certain all employees tasked with the responsibility of accepting credit and debit cards from customers have a working understanding of the looks and functionality ofthe payment processing equipment they're using.
Scammers often try to tamper with a business's payment processing equipment in an effort to steal credit card information. Altered equipment usually consists of a small piece of hardware physically attached to the terminal itself.
An attentive employee who knows what to look for should be able to easily identify an extra attachment to the device or oddly functioning software.
Refrain from storing credit card numbers — To avoid one of the biggest PCI compliance risks, you shoulddo everything in your powerto not store credit card numbers. Look for a payments provider whose platform is designed so credit card information is never stored at your business site or on your business software.
Your provider should be able to process the transaction and then store your customers' card information in a secure vault in the cloud. They should provide you with an encrypted ID,
To help businesses guard against such issues, Rob Bertke, senior vice president of research and development at Sage North America, offers the followingtips to businesses of all sizes to help them stay protected.
Immediately deal with any breach — It's critical to understand that even if all cautious, conservative steps are taken, and the best payment-processing securityis installed, a breach can still occur.
If it does, you must have detailed credit card sales records to refer back to as a means of retracing your steps. This will help in determining when and where the breach took placeand therefore mitigate the potential for additional losses. Furthermore, a properassessment of the initial attack may ultimately provide a trail back to the source of the data breach .
Maintain PCI Compliance — Not only is it against card brand regulations if you're not Payment Card Industry (PCI)-compliant when accepting credit or debit cards, but it's also an absolute must in today's economic climate.
Make certain your payment-processing software security is current and is PA-DSS (Payment Application Data Security Standard)-certified, and that your business receives its PCI-DSS (Payment Card Industry Data Security Standard) certification.
PCI certification provides a level of confidence and assurance that a processor has followed and passed a robust set of best practices for securing the information being processed when credit card payments are made.
Use end-to-end encryption for all sensitive data — End-to-end encryption (E2EE) essentially boils downto scrambling the data sent from one device to another. It starts with your payment capture devices, and goes allthe way to the transaction being authorized.
E2EE technology prevents the card account data from being stolen electronically and lessens the cost and impact for your business to become PCI-certified. A company's mobile payment devices, credit card terminals, software applications and online payment portals need built-in encryption functionality when transmitting customer information.
Prevent tampering — Make certain all employees tasked with the responsibility of accepting credit and debit cards from customers have a working understanding of the looks and functionality ofthe payment processing equipment they're using.
Scammers often try to tamper with a business's payment processing equipment in an effort to steal credit card information. Altered equipment usually consists of a small piece of hardware physically attached to the terminal itself.
An attentive employee who knows what to look for should be able to easily identify an extra attachment to the device or oddly functioning software.
Refrain from storing credit card numbers — To avoid one of the biggest PCI compliance risks, you shoulddo everything in your powerto not store credit card numbers. Look for a payments provider whose platform is designed so credit card information is never stored at your business site or on your business software.
Your provider should be able to process the transaction and then store your customers' card information in a secure vault in the cloud. They should provide you with an encrypted ID,
Tuesday 30 April 2013
Risky Asset (defintion)
An investment with a return that is not guaranteed. Assets carry varying levels of risk . For example, holding a corporate bond is generally lessrisky than holding a stock . Government bonds are generally not considered risky assets. A risky asset should not be confused with a risk asset .
Sunday 28 April 2013
Apple produces stronger than expected earnings inits second quarter,
Apple reported earnings of $9.5 billion on $43.6 billion in sales. That was right on target with the$9.5 billion in profit and just barely above the$42.3 billion in sales that Wall Street expected. It was also above Apple's own expectations, which were between $9.23 and$10.23 per share on sales of $41 billion to $43 billion.
By comparison, Apple tallied up a higher $11.6 billion in profit on sales of$39.2 billion during the same quarter last year. That was fueled by iPhoneand iPad sales that were 88 percent and 151 percent better than the year before, respectively.
"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," Apple CEO TimCook said in a statement ."Our teams are hard at work on some amazing new hardware, software, and services, and we are very excited about the products in our pipeline."
By comparison, Apple tallied up a higher $11.6 billion in profit on sales of$39.2 billion during the same quarter last year. That was fueled by iPhoneand iPad sales that were 88 percent and 151 percent better than the year before, respectively.
"We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad," Apple CEO TimCook said in a statement ."Our teams are hard at work on some amazing new hardware, software, and services, and we are very excited about the products in our pipeline."
Saturday 27 April 2013
Risk Capital (Defination)
Investment funds allocated to speculative activity. Risk capital refers to funds used for high-risk, high-reward investments such as junior mining or emerging biotechnology stocks. Such capital can either earn spectacular returns over a period of time, or may dwindle to a fraction of the initial amount invested if several ventures prove unsuccessful. Diversification is key for successful investment of risk capital. In the context of venture capital, risk capital may also refer to funds invested in a promising start-up.The more risk averse the investor, the lower the proportion of risk capital allocated in the total portfolio should be. While young investors, because of their lengthy investment horizons, can have a very significant proportion of risk capital in their portfolios, retirees may not be comfortable with a high proportion of risk capital.
Thursday 18 April 2013
Vodafone India and ICICI Bank, have launched M-Pesa
For the majority of people in the West banking is as easy as walking to a local branch or ATM, or logging into their account from a computer. But for millions in developing countries, even having a bank accountis out of reach. In India, at least, that could be about tochange.
Vodafone India and ICICI Bank, India's largest privatebank, have launched M-Pesa, a mobile-based money transfer and payment service that was first established in Kenya in 2007. The partnership, announced in a news release April 17, claims it will give mobile-banking access to some 700 million Indian people who are currently "unbanked" -- people with no access to conventional banking services like bank branches and ATMs.
Vodafone says service will first rollout in India's eastern regions, including Kolkata and West Bengal, with 8,300 agents. That part of India is home to about 220 million people. Service will eventually be extended across the rest of the country.
The M-Pesa system -- where "M" stands for mobile and "pesa" is the Swahili word for money -- begins with real cash and an M-Pesa agent. A customer signs up, registers a personal mobile phone number and deposits money into the linked account at an agent store, which could be a mobile phone shop, a gas station ora supermarket.
To send money, the user inputs a recipient's mobile phone number, the amountof money to send and a security code for protection.To withdraw funds, the receiver visits an M-Pesa agent and requests a withdrawal through his or her mobile phone. Both thereceiver and the M-Pesa agent then receive a confirmation for withdrawal,which instructs the agent to give the customer cash. Billscan be paid and mobile talktime can also be bought through the platform.
"For millions of people in India, a mobile phone is a bank account, a front door to a micro-business or a lifeline to people in the remotest areas," said MartenPieters, Managing Director and CEO of Vodafone India.
"Research shows that M-Pesa brings real benefits to users in their daily lives, saving three hours a week of their time and around $3in money transfer costs -- a significant amount to peoplein some areas."
Greater cell phone penetration also brings greater economic benefit to local economies, often far removed from urban centers in large developingcountries. A 2006 Universityof Michigan study found that every 10% increase in cell phone penetration grows the local economy by0.6%.
In 2011, India alone added142 million new mobile phone subscriptions -- twice as many as in the whole of Africa, and more than in Europe, the Middle East and the former Soviet republics combined, according to the International Telecommunication Union (ITU) in a June 2012 report.
Between 2000 and 2011, India recorded an enormous boom in cell phone subscriptions -- growing from just 3.5 million to more than 893 million. In that same time, China saw mobile phone subscriptions increase more than ten-fold to more than 986 million subscriptions. The United States saw growth of just 87% over thesame dozen years to 290 million, says the ITU.
Vodafone India and ICICI Bank, India's largest privatebank, have launched M-Pesa, a mobile-based money transfer and payment service that was first established in Kenya in 2007. The partnership, announced in a news release April 17, claims it will give mobile-banking access to some 700 million Indian people who are currently "unbanked" -- people with no access to conventional banking services like bank branches and ATMs.
Vodafone says service will first rollout in India's eastern regions, including Kolkata and West Bengal, with 8,300 agents. That part of India is home to about 220 million people. Service will eventually be extended across the rest of the country.
The M-Pesa system -- where "M" stands for mobile and "pesa" is the Swahili word for money -- begins with real cash and an M-Pesa agent. A customer signs up, registers a personal mobile phone number and deposits money into the linked account at an agent store, which could be a mobile phone shop, a gas station ora supermarket.
To send money, the user inputs a recipient's mobile phone number, the amountof money to send and a security code for protection.To withdraw funds, the receiver visits an M-Pesa agent and requests a withdrawal through his or her mobile phone. Both thereceiver and the M-Pesa agent then receive a confirmation for withdrawal,which instructs the agent to give the customer cash. Billscan be paid and mobile talktime can also be bought through the platform.
"For millions of people in India, a mobile phone is a bank account, a front door to a micro-business or a lifeline to people in the remotest areas," said MartenPieters, Managing Director and CEO of Vodafone India.
"Research shows that M-Pesa brings real benefits to users in their daily lives, saving three hours a week of their time and around $3in money transfer costs -- a significant amount to peoplein some areas."
Greater cell phone penetration also brings greater economic benefit to local economies, often far removed from urban centers in large developingcountries. A 2006 Universityof Michigan study found that every 10% increase in cell phone penetration grows the local economy by0.6%.
In 2011, India alone added142 million new mobile phone subscriptions -- twice as many as in the whole of Africa, and more than in Europe, the Middle East and the former Soviet republics combined, according to the International Telecommunication Union (ITU) in a June 2012 report.
Between 2000 and 2011, India recorded an enormous boom in cell phone subscriptions -- growing from just 3.5 million to more than 893 million. In that same time, China saw mobile phone subscriptions increase more than ten-fold to more than 986 million subscriptions. The United States saw growth of just 87% over thesame dozen years to 290 million, says the ITU.
Wednesday 17 April 2013
Yahoo first quarter rose 36 percent to $390 million, or 35 cents a share
Yahoo is still doing better as an investment house than as anInternet company. Its first-quarter earnings beat analysts' expectations, but much of the gain was from its investments abroad.
Since Marissa Mayer left Google to lead Yahoo nine months ago, the company's stock is up more than 50 percent, buoyed less by optimism in Yahoo than WallStreet's giddiness over Alibaba, the Chinese Internet company in which Yahoo retains a 20 percent stake.
Alibaba has signaled that it is preparing for an initial public offering that analysts predict could value it at $55billion to more than $120 billion, double to five times more than Yahoo's $26.2 billion market capitalization.
"If you own Yahoo for Alibaba, you're doing just great," said Colin Gillis, an Internet analyst at BGC Partners. "But if you own it for the core business, you'vegot some speed bumps."
On Tuesday the company reported that net income in the first quarter rose 36 percent to $390 million, or 35 cents a share, from the year-ago quarter. Wall Street analysts had expected net income of 24 cents a share.
But much of that was because of Alibaba. The income contribution from Yahoo's equity interests in Alibaba and Yahoo Japan was $217.6 million, well above its own first quarter operating income of $186 million.
Meanwhile, Yahoo's revenuewas down. The company said revenue was $1.14 billion, down 7 percent from the year-ago quarter. Excluding traffic acquisition costs, revenue was flat at$1.07 billion. That news sentYahoo's stock down about 4 percent in after-hours trading, after closing at$23.79 on Tuesday.
Yahoo reported first-quarterearnings at a critical juncturefor Ms. Mayer. Investors are eager to see whether she can increase revenues, which have languished in an increasingly competitive landscape.
Since Marissa Mayer left Google to lead Yahoo nine months ago, the company's stock is up more than 50 percent, buoyed less by optimism in Yahoo than WallStreet's giddiness over Alibaba, the Chinese Internet company in which Yahoo retains a 20 percent stake.
Alibaba has signaled that it is preparing for an initial public offering that analysts predict could value it at $55billion to more than $120 billion, double to five times more than Yahoo's $26.2 billion market capitalization.
"If you own Yahoo for Alibaba, you're doing just great," said Colin Gillis, an Internet analyst at BGC Partners. "But if you own it for the core business, you'vegot some speed bumps."
On Tuesday the company reported that net income in the first quarter rose 36 percent to $390 million, or 35 cents a share, from the year-ago quarter. Wall Street analysts had expected net income of 24 cents a share.
But much of that was because of Alibaba. The income contribution from Yahoo's equity interests in Alibaba and Yahoo Japan was $217.6 million, well above its own first quarter operating income of $186 million.
Meanwhile, Yahoo's revenuewas down. The company said revenue was $1.14 billion, down 7 percent from the year-ago quarter. Excluding traffic acquisition costs, revenue was flat at$1.07 billion. That news sentYahoo's stock down about 4 percent in after-hours trading, after closing at$23.79 on Tuesday.
Yahoo reported first-quarterearnings at a critical juncturefor Ms. Mayer. Investors are eager to see whether she can increase revenues, which have languished in an increasingly competitive landscape.
Monday 15 April 2013
What factors determine your creditcard limit
A credit limit is the maximum amount that you can charge on your credit card. Credit card companies setyour limit when you apply for a card by considering several factors. For starters, they’ll look atyour credit score, which is a number that represents your entire credit history.The scoring system analyzes how you’ve repaidloans in the past and predicts yourability to pay back future loans. Companies also will look at your income, debt levels and repayment history. Another factor that comes into play is how much other outstanding credit you have available to you, such as through other credit cards.
Your credit limit may increase over time as you build a steady track record of paying your bills each month. Make sure that you keep your total charges well within your credit limit. Why? Your credit score may be affected if your balance is above the credit limit because it signals to creditors that you may be having financial difficulties and thus are a riskier borrower. Some credit card companies, however, offer electronic and/or mobile reminders to let you know when you’re nearing your limit.
Your credit card company mayraise your credit limit without you requesting them to do so. However, you may have to call your company’s customer service number to ask them for an increase. If you have ahistory of paying your bills on time, a credit card company is more likely toraise your limit to accommodateyou, though the increase may be small.This may help you avoid overextending yourself financially.A couple of important factorsa creditor considers are yourincome and your ability to repay. So not only is the amount of money you earn important but so is your debt-to-income ratio. If you were a lender, would you want to loan $4,000 to a client with $400 income and$300 debt? So, income and current debt ratio is important.
The length of residency often comes into play when establishing limits, too. If yourelocate from place to place frequently, you could be considered less stable. Lenders clearly want to see stability when establishing your credit limits.
The final major factor in granting credit is how many other credit cards you have. The more credit cards you have, the less likely creditorswill grant you a higher limit. However, if you've had the same credit card or cards fora long period of time, that would nullify the issue of having too many cards. Again, it's a reflection of your stability. A history of long term timely payments demonstrates stability.
Your credit limit may increase over time as you build a steady track record of paying your bills each month. Make sure that you keep your total charges well within your credit limit. Why? Your credit score may be affected if your balance is above the credit limit because it signals to creditors that you may be having financial difficulties and thus are a riskier borrower. Some credit card companies, however, offer electronic and/or mobile reminders to let you know when you’re nearing your limit.
Your credit card company mayraise your credit limit without you requesting them to do so. However, you may have to call your company’s customer service number to ask them for an increase. If you have ahistory of paying your bills on time, a credit card company is more likely toraise your limit to accommodateyou, though the increase may be small.This may help you avoid overextending yourself financially.A couple of important factorsa creditor considers are yourincome and your ability to repay. So not only is the amount of money you earn important but so is your debt-to-income ratio. If you were a lender, would you want to loan $4,000 to a client with $400 income and$300 debt? So, income and current debt ratio is important.
The length of residency often comes into play when establishing limits, too. If yourelocate from place to place frequently, you could be considered less stable. Lenders clearly want to see stability when establishing your credit limits.
The final major factor in granting credit is how many other credit cards you have. The more credit cards you have, the less likely creditorswill grant you a higher limit. However, if you've had the same credit card or cards fora long period of time, that would nullify the issue of having too many cards. Again, it's a reflection of your stability. A history of long term timely payments demonstrates stability.
Customers of Lloyds Banking Group have been facing problems logging on to online banking
Customers of Lloyds TSB and Halifax, which are partof the same group, reported problems accessing their accounts viathe internet.
The bank apologised to customers for the inconvenience, but said that the problem had now been fixed.
Systems errors have hit a number of UK banks, including Lloyds, in the past.
In October, users of the banking group's debit cards, cash machines and the bank's online banking service complained of difficulties on the busiest day of the week for cash machine withdrawals.
In a statement following the latest problem, a Lloyds spokeswoman said:"For an hour this afternoon, we experiencedan issue that affected someof our online banking customers.
"All of our systems were back up and running by 17:00 BST. We know our customers rely on us, and we apologise for the inconvenience we have caused them."
These issues were dwarfedby problems at RBS, NatWest and Ulster Bank last summer, when hundreds of thousands of account holders suffered disruption due to a huge computer failure.
That breakdown, and the backlog caused, is now thesubject of an investigation by the Financial Conduct Authority.
The bank apologised to customers for the inconvenience, but said that the problem had now been fixed.
Systems errors have hit a number of UK banks, including Lloyds, in the past.
In October, users of the banking group's debit cards, cash machines and the bank's online banking service complained of difficulties on the busiest day of the week for cash machine withdrawals.
In a statement following the latest problem, a Lloyds spokeswoman said:"For an hour this afternoon, we experiencedan issue that affected someof our online banking customers.
"All of our systems were back up and running by 17:00 BST. We know our customers rely on us, and we apologise for the inconvenience we have caused them."
These issues were dwarfedby problems at RBS, NatWest and Ulster Bank last summer, when hundreds of thousands of account holders suffered disruption due to a huge computer failure.
That breakdown, and the backlog caused, is now thesubject of an investigation by the Financial Conduct Authority.
$88 million missing in Congolese mining taxes
(Reuters) - Tax authorities in Democratic Republic of Congo have failed to account for $88 million in revenue from the boomingmining sector, according toa representative of a globalanti-corruption campaign.
Congo has attracted international firms including Freeport-McMoRan, Glencore and Randgold to mine its rich copper, cobalt and gold deposits, but remains one of the most corrupt countries on earth.
The missing funds date from 2010 and tax bodies should have paid them into the central bank, said Mack Dumba Jeremy, national coordinator in Congo for the Extractive Industries Transparency Initiative (EITI).
But he said the DGRAD taxagency had been unable to prove that the payment was made. Attempts to findthe money had been going on since January, said Jeremy, who stopped short of accusing the authorities of corruption.
"DGRAD must prove that the money actually arrivedin the public treasury in 2010. If they can't then the executive committee ofEITI will go to the courts in order to launch an inquiry into the whereabouts of this $88 million," Jeremy told journalists.
EITI is an international initiative which aims to improve transparency in resource-rich countries by tallying up the amount paid by companies and how much governments say they receive.
Congo is currently a candidate to become a fullmember of EITI although it is unclear whether it will meet the standards required.
No one from DGRAD or the government was immediately available for comment. Prime Minister Augustin Matata Ponyo hasrepeatedly promised to tackle corruption.
Matata Ponyo survived a challenge to his authority on Monday after more than 40 legislators who had previously signed a motion of censure against him withdrew their signatures.
That scuppered opposition attempts to force a vote of no confidence in the government for various alleged failings, including mismanagement of government funds.
Watchdog Transparency International ranks Congo 160th out of 176 countries in its Corruption Perceptions Index for 2012, with a score of just 21 out of 100
Congo has attracted international firms including Freeport-McMoRan, Glencore and Randgold to mine its rich copper, cobalt and gold deposits, but remains one of the most corrupt countries on earth.
The missing funds date from 2010 and tax bodies should have paid them into the central bank, said Mack Dumba Jeremy, national coordinator in Congo for the Extractive Industries Transparency Initiative (EITI).
But he said the DGRAD taxagency had been unable to prove that the payment was made. Attempts to findthe money had been going on since January, said Jeremy, who stopped short of accusing the authorities of corruption.
"DGRAD must prove that the money actually arrivedin the public treasury in 2010. If they can't then the executive committee ofEITI will go to the courts in order to launch an inquiry into the whereabouts of this $88 million," Jeremy told journalists.
EITI is an international initiative which aims to improve transparency in resource-rich countries by tallying up the amount paid by companies and how much governments say they receive.
Congo is currently a candidate to become a fullmember of EITI although it is unclear whether it will meet the standards required.
No one from DGRAD or the government was immediately available for comment. Prime Minister Augustin Matata Ponyo hasrepeatedly promised to tackle corruption.
Matata Ponyo survived a challenge to his authority on Monday after more than 40 legislators who had previously signed a motion of censure against him withdrew their signatures.
That scuppered opposition attempts to force a vote of no confidence in the government for various alleged failings, including mismanagement of government funds.
Watchdog Transparency International ranks Congo 160th out of 176 countries in its Corruption Perceptions Index for 2012, with a score of just 21 out of 100
Thursday 11 April 2013
Wheelock Sells Hong Kong Tower to Manulifeas Rents Soar
Manulife Financial Corp. (MFC) has agreed to pay the second-highest priceon record for a whole Hong Kong office tower as companies seeking cheaper rents push up demand for space outside the city’s Central business district.
Canada’s biggest insurer will pay HK$4.5 billion ($580 million) to the developer, a unit of Wheelock & Co. (20) , for the 512,000-square-foot Kowloon East building, the companies said in a joint statement yesterday. The building is scheduledfor completion by the endof 2015 and will be used by Manulife as its Hong Kong headquarters, they said.
Demand for office space outside Central, which hasthe world’s second-highest office occupancy cost behind London ’s West End, is rising as banks and brokerages seek cheaper locations to keep costs low amid slowing corporate finance activities. Monthly rents in Kowloon East rose 4.5 percent in the first three months of 2013 from the previous quarter to HK$31.71 a square foot, asthose in Central gained 0.3 percent to HK$98.77 asquare foot, according to broker Cushman & Wakefield Inc.
The price paid by Manulife, equivalent to about HK$8,790 a square foot, is the second-highestin Hong Kong for whole office building sale, according to Sigrid Zialcita, managing directorfor Asia research at Cushman & Wakefield. Agricultural Bank of ChinaLtd. (601288) last year paid HK$4.9 billion for 50 Connaught Road, near Central.
Shares of Wheelock rose as much as 1.9 percent and were trading at HK$42.20 at 9:54 a.m. in Hong Kong. The stock hasrisen 8.2 percent this year,compared with the 2 percent decline in the benchmark Hang Seng Index . Manulife’s shares traded in Hong Kong rose2.8 percent to HK$111.80,bringing its gain this year to 8.1 percent.
JPMorgan Chase & Co. and Bank of America Corp. are among banks that have leased additional office space in areas outside of Central in the first quarter, accordingto Cushman & Wakefield.
Manulife isn’t the first financial services companyto acquire its own building in Kowloon East, where rents are rising. China Construction Bank Corp. (939) in March last year paid HK$2.5 billion, or about HK$7,200 a square foot, for an office building in the area.
The insurer is buying one of the two towers of the One Bay East commercial complex. Wheelock bought the site for HK$3.53 billion, or HK$3,856 per buildable square foot, in a tender in 2011. The developer, Wheelock Properties Ltd., may sell the second towerin full or by floors when it’s nearing completion, Managing Director Ricky Wong said in yesterday’s statement
Wheelock & Co. is controlled by the family of Peter Woo, who has an estimated net worth of $8 billion, according to the Bloomberg Billionaires Index . The Hong Kong-based company is the parent of Wharf Holdings Ltd. (4) , owner of two of Hong Kong’s largest shopping malls and the city’s cable TV operator.
CBRE Group Inc., the world’s biggest commercial realtor, brokered the transaction, according to the statement.
Canada’s biggest insurer will pay HK$4.5 billion ($580 million) to the developer, a unit of Wheelock & Co. (20) , for the 512,000-square-foot Kowloon East building, the companies said in a joint statement yesterday. The building is scheduledfor completion by the endof 2015 and will be used by Manulife as its Hong Kong headquarters, they said.
Demand for office space outside Central, which hasthe world’s second-highest office occupancy cost behind London ’s West End, is rising as banks and brokerages seek cheaper locations to keep costs low amid slowing corporate finance activities. Monthly rents in Kowloon East rose 4.5 percent in the first three months of 2013 from the previous quarter to HK$31.71 a square foot, asthose in Central gained 0.3 percent to HK$98.77 asquare foot, according to broker Cushman & Wakefield Inc.
The price paid by Manulife, equivalent to about HK$8,790 a square foot, is the second-highestin Hong Kong for whole office building sale, according to Sigrid Zialcita, managing directorfor Asia research at Cushman & Wakefield. Agricultural Bank of ChinaLtd. (601288) last year paid HK$4.9 billion for 50 Connaught Road, near Central.
Shares of Wheelock rose as much as 1.9 percent and were trading at HK$42.20 at 9:54 a.m. in Hong Kong. The stock hasrisen 8.2 percent this year,compared with the 2 percent decline in the benchmark Hang Seng Index . Manulife’s shares traded in Hong Kong rose2.8 percent to HK$111.80,bringing its gain this year to 8.1 percent.
JPMorgan Chase & Co. and Bank of America Corp. are among banks that have leased additional office space in areas outside of Central in the first quarter, accordingto Cushman & Wakefield.
Manulife isn’t the first financial services companyto acquire its own building in Kowloon East, where rents are rising. China Construction Bank Corp. (939) in March last year paid HK$2.5 billion, or about HK$7,200 a square foot, for an office building in the area.
The insurer is buying one of the two towers of the One Bay East commercial complex. Wheelock bought the site for HK$3.53 billion, or HK$3,856 per buildable square foot, in a tender in 2011. The developer, Wheelock Properties Ltd., may sell the second towerin full or by floors when it’s nearing completion, Managing Director Ricky Wong said in yesterday’s statement
Wheelock & Co. is controlled by the family of Peter Woo, who has an estimated net worth of $8 billion, according to the Bloomberg Billionaires Index . The Hong Kong-based company is the parent of Wharf Holdings Ltd. (4) , owner of two of Hong Kong’s largest shopping malls and the city’s cable TV operator.
CBRE Group Inc., the world’s biggest commercial realtor, brokered the transaction, according to the statement.
Wednesday 10 April 2013
Advertising revenue from UK smartphones grew at 10 times the rate of other online platforms in 2012,
The Internet Advertising Bureau (IAB) said a study conducted by PwC showed spending on online advertising reached£5.42bn in 2012.
Overall advertising spending on the internet jumped 12.5% last year, defying a flagging economy as companies battled to reach consumers spending more timeon smartphones andtablet computers.
The study, which used data from companies that had provided information the previous year, said internet advertising spending rose £607m on 2011, with some £323m due to an increase in mobile advertising.
Britain has led the way in moving advertising from traditional areas likenewspapers and radio to the internet.
A high take-up of broadband and the rise of smartphones and tablet computers which allow users to accessthe internet on the go have helped theshift.
"Advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile asan afterthought," director of research and strategy at the IAB Tim Elkington said.
With around two-thirds of adult Britons owning a smartphone as of December 2012, mobile advertising now accounts for almost 10% of all digital ad spending compared with about 1% in 2009.
Video advertising grew 46% to £160m, accounting for 12% of online and mobile display in 2012.
Demand for mobile adverts is likely to increase after auctions for next-generation 4G airwaves earlier this year, which are set to deliver speeds more than five timesfaster than 3G services.
These services will make downloading high-resolution video easier and enable better multi-tasking on the latestsmartphones and tablets.
EE, Britain's biggest mobile operator, said it was now on track to sign up onemillion customers for its 4G service by the end of the year.
The consumer goods sector overtook the financesector as the biggestspender on digital display advertising - accounting for almost 16% of display ad spend in2012.
Overall advertising spending on the internet jumped 12.5% last year, defying a flagging economy as companies battled to reach consumers spending more timeon smartphones andtablet computers.
The study, which used data from companies that had provided information the previous year, said internet advertising spending rose £607m on 2011, with some £323m due to an increase in mobile advertising.
Britain has led the way in moving advertising from traditional areas likenewspapers and radio to the internet.
A high take-up of broadband and the rise of smartphones and tablet computers which allow users to accessthe internet on the go have helped theshift.
"Advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile asan afterthought," director of research and strategy at the IAB Tim Elkington said.
With around two-thirds of adult Britons owning a smartphone as of December 2012, mobile advertising now accounts for almost 10% of all digital ad spending compared with about 1% in 2009.
Video advertising grew 46% to £160m, accounting for 12% of online and mobile display in 2012.
Demand for mobile adverts is likely to increase after auctions for next-generation 4G airwaves earlier this year, which are set to deliver speeds more than five timesfaster than 3G services.
These services will make downloading high-resolution video easier and enable better multi-tasking on the latestsmartphones and tablets.
EE, Britain's biggest mobile operator, said it was now on track to sign up onemillion customers for its 4G service by the end of the year.
The consumer goods sector overtook the financesector as the biggestspender on digital display advertising - accounting for almost 16% of display ad spend in2012.
Sir Richard Branson sells Virgin Money for $40m
BRITISH entrepreneurSir Richard Branson isselling his Virgin Money financial services business in Australia to Bank of Queensland in a $40 million deal.
Under the deal, the bank will have exclusive use of the Virgin Money brand for four decades in exchange for an ongoing royalty to Sir Richard's Virgin Group.
Virgin Group will alsobe given a seat on BoQ's board.
BoQ believes the dealwill allow it to expand into untapped markets by distributing its products marketed under the Virgin Money brand.
"It will enable us to sell BOQ-manufactured banking products marketed under the Virgin Money Australia brand to customers who wouldbe unlikely to walk into one of our branches, and provides a low risk, high potential entry point into online funds management distribution with an established brand," BoQ's chief executive Stuart Grimshaw said.
Virgin Money has about 150,000 customers in Australia.
Under the deal, the bank will have exclusive use of the Virgin Money brand for four decades in exchange for an ongoing royalty to Sir Richard's Virgin Group.
Virgin Group will alsobe given a seat on BoQ's board.
BoQ believes the dealwill allow it to expand into untapped markets by distributing its products marketed under the Virgin Money brand.
"It will enable us to sell BOQ-manufactured banking products marketed under the Virgin Money Australia brand to customers who wouldbe unlikely to walk into one of our branches, and provides a low risk, high potential entry point into online funds management distribution with an established brand," BoQ's chief executive Stuart Grimshaw said.
Virgin Money has about 150,000 customers in Australia.
Monday 8 April 2013
Bank of Shanghai plans to raise about 15 billion yuan ($2.4billion) through an initial public offering in Hong Kong
SHANGHAI, April 9 (Reuters) - Bank of Shanghai plans to raise about 15 billion yuan ($2.4billion) through an initial public offering in Hong Kong this year to replenishcapital, the official Shanghai Securities News reported on Tuesday, citing an internal document distributed to shareholders.
The Chinese lender, whichis eight percent owned by HSBC Holdings Plc , also plans to raise a similar amount of money by selling shares publicly in mainland China, the newspaper said, without giving a timeframe.
Both listings are subject to regulatory approval, it added.
Bank of Shanghai and some other Chinese companies are looking to raise funds in overseas markets as China's securities regulator has frozen the domestic IPO market since last November as part of a campaign to get more than800 IPO applicants to clean up their books.
The newspaper said Bank of Shanghai is expected to have a capital shortfall of 59 billion yuan by 2014, ofwhich 35 billion yuan would be replenished through bond and share issuance.
The Chinese lender, whichis eight percent owned by HSBC Holdings Plc , also plans to raise a similar amount of money by selling shares publicly in mainland China, the newspaper said, without giving a timeframe.
Both listings are subject to regulatory approval, it added.
Bank of Shanghai and some other Chinese companies are looking to raise funds in overseas markets as China's securities regulator has frozen the domestic IPO market since last November as part of a campaign to get more than800 IPO applicants to clean up their books.
The newspaper said Bank of Shanghai is expected to have a capital shortfall of 59 billion yuan by 2014, ofwhich 35 billion yuan would be replenished through bond and share issuance.
Friday 29 March 2013
Bank of Cyprus big depositors to get 37.5 pct equity
- Big depositors in Cypriot lender Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros, a source with direct knowledge of the matter said on Friday.
The rest of their big deposits may never be paid back. About 22.5 percent of deposits over 100,000 euros will attract no interest. The remaining 40 percent will continue toattract interest, but will notbe repaid unless the bank does well.
Authorities were expected to officially announce the conditions on Saturday.
The rest of their big deposits may never be paid back. About 22.5 percent of deposits over 100,000 euros will attract no interest. The remaining 40 percent will continue toattract interest, but will notbe repaid unless the bank does well.
Authorities were expected to officially announce the conditions on Saturday.
Wednesday 27 March 2013
Eurogroup chief says European backing for banks last resort
European support for troubled banks is a last resort laid bare what has long been an open secret in Brussels: promises to create a euro zone backstop for banks may never be fulfilled.
Designed to secure a level playing field in the euro zone and prevent vulnerable countries having to contain financial problems alone, a European banking union was one of the biggest political commitments made to underpin the euro.
Comments from the head of the Eurogroup of finance ministers this week that countries which encounter bank problems may have to cope alone, however, underscore resistance to delivering on last year's promise.
"Strengthen your banks, fix your balance sheets and realise that if a bank gets in trouble, the response will no longer automatically be that we'll come and take away your problem," Jeroen Dijsselbloem told Reuters.
"We're going to push themback," the Dutch Finance Minister said shortly after announcing a bailout of Cyprus that forced the closure of the country's second-biggest bank and imposed huge losses on big depositors.
"That's the first response we need. Push them back. You deal with them."
His candid remarks, described by one EU official as "not the most brilliant thing to say", clashed with a commitmentby euro zone leaders to club together when banks fail. They irritated many in Brussels, used to gentler diplomacy.
The comments also grated in Dublin, which still hopesthe euro zone will stand by a pledge to allow its rescue fund, the EuropeanStability Mechanism, to recapitalise banks directly.
Bailed out by European countries and expected to resume normal borrowing on markets this year, Ireland wants direct assistance available for its banks should they get in trouble again to avoid the risk of adding to the country's debt.
It is also hoping the ESM will assume some of the burden of big recapitalisations that have already taken place.
"The principle which was agreed in June was to break the link between sovereigns and banks and the clear understanding... is that the ESM ... of course will potentially be used forrecapitalisations," Ireland'sEuropean Affairs Minister Lucinda Creighton told Reuters. "That's the whole point."
The euro zone's three maintriple-A rated states, Germany, the Netherlands and Finland, said last year the ESM could only be used if trouble arose at banks under European supervision in future, leaving "legacy" problems to home countries.
BANK RUNS
Dijsselbloem appeared to go further when he said the aim should be "a situation where we will never need to even consider direct recapitalisation".
After remonstrations from several euro zone partners,he issued a statement clarifying that Cyprus was not a template but a special case.
Another euro zone source said the Dutchman, barely one month in the job, had got carried away by his enthusiasm and needed tolearn that, as head of the Eurogroup, "you must giveup on expressing personal opinions"
Designed to secure a level playing field in the euro zone and prevent vulnerable countries having to contain financial problems alone, a European banking union was one of the biggest political commitments made to underpin the euro.
Comments from the head of the Eurogroup of finance ministers this week that countries which encounter bank problems may have to cope alone, however, underscore resistance to delivering on last year's promise.
"Strengthen your banks, fix your balance sheets and realise that if a bank gets in trouble, the response will no longer automatically be that we'll come and take away your problem," Jeroen Dijsselbloem told Reuters.
"We're going to push themback," the Dutch Finance Minister said shortly after announcing a bailout of Cyprus that forced the closure of the country's second-biggest bank and imposed huge losses on big depositors.
"That's the first response we need. Push them back. You deal with them."
His candid remarks, described by one EU official as "not the most brilliant thing to say", clashed with a commitmentby euro zone leaders to club together when banks fail. They irritated many in Brussels, used to gentler diplomacy.
The comments also grated in Dublin, which still hopesthe euro zone will stand by a pledge to allow its rescue fund, the EuropeanStability Mechanism, to recapitalise banks directly.
Bailed out by European countries and expected to resume normal borrowing on markets this year, Ireland wants direct assistance available for its banks should they get in trouble again to avoid the risk of adding to the country's debt.
It is also hoping the ESM will assume some of the burden of big recapitalisations that have already taken place.
"The principle which was agreed in June was to break the link between sovereigns and banks and the clear understanding... is that the ESM ... of course will potentially be used forrecapitalisations," Ireland'sEuropean Affairs Minister Lucinda Creighton told Reuters. "That's the whole point."
The euro zone's three maintriple-A rated states, Germany, the Netherlands and Finland, said last year the ESM could only be used if trouble arose at banks under European supervision in future, leaving "legacy" problems to home countries.
BANK RUNS
Dijsselbloem appeared to go further when he said the aim should be "a situation where we will never need to even consider direct recapitalisation".
After remonstrations from several euro zone partners,he issued a statement clarifying that Cyprus was not a template but a special case.
Another euro zone source said the Dutchman, barely one month in the job, had got carried away by his enthusiasm and needed tolearn that, as head of the Eurogroup, "you must giveup on expressing personal opinions"
Saturday 23 March 2013
HOW MONEY TRANSFER IS DRIVING KENYA ECONOMY
HOW MONEY TRANSFER IS DRIVING KENYA ECONOMY
Usage of mobile money transfer is on increase in Kenya day bay day. Some of the operation than by mobile money service include the following
Paying of electricity and water bills, this days you do not see people lining up in banks just pay the bills.
Shopping online many companies today in Kenya give their customers to pay for goods or service by paying through mobile money cash transfer. This process operate just like visa.
Booking of travel ticket today in Kenya major airline services operating in the country allows it customers to pay for their tickets by Mpesa.
Cheap mobile phone being launched in Nairobi my major mobile manufacturers, especially those from china is the key to the success of the project I the country. the four major mobile providers companies in Kenya are;
a) Safaricom through Mpesa service
b) Airtel through Airtel money
c) Orange by Orange money
d) YU by Yucash
Just four months after safaricom launched M-shauri in collaboration with Commercial Bank of Africa a program that allow its customers to save cash or borrow cash. Its recorded massive response from Kenyans. Today it has more than 4 million customer already.
Statistics from Central Bank of Kenya shows that there are 15million bank deposits accounts compared with 24million money transfer accounts.
Friday 22 March 2013
JPMorgan board "strongly endorses" dual role for Dimon
The board of directors of JPMorgan Chase & Co said on Friday it "strongly endorses" keeping Jamie Dimon as both their chairman and chief executive of the company.
The comment, contained inthe opening pages of the company's proxy filing ahead of its annual meeting on May 21, is a more vigorous affirmation of the same view the paneltook last year when it opposed an unsuccessful shareholder proposal to split the roles.
The remark comes even after the board said in January that it had cut Dimon's annual compensation in half for 2012 to $11.5 million after the company lost $6.2 billion on derivatives in the so-called "London Whale" trades.
The board said the"strength and independence" of its oversight had been demonstrated by actions the company took after thetrading debacle.
The company has since overhauled its risk controlsand replaced some of its top executives.
The new proxy includes a fresh shareholder proposalcalling for different peopleto hold the posts of CEO and chairman. It is similar to last year's proposal which received 40 percentof the vote.
That vote came five days after the company suddenly announced on May 10 that it had a loss of more than $2 billion on derivatives trades. The size of the loss grew afterward and investors learned more details from congressional hearings about how badly the company had handled its investment portfolio.
Proponents of this year's proposal, who include managers of pension fundsfor New York City employees and for the American Federation of State, County and Municipal Employees, haveadded the derivatives loss as a reason to separate the roles.
The board, as it did last year, said it while it is glad to have Dimon in both roles it has not ruled out separating the posts in the future.
This year's meeting, like last year's, is to be held in a JPMorgan office park in Tampa, Florida.
JPMorgan shares have recovered all of the marketvalue they lost after the derivatives debacle. The stock traded up 0.9 percent on Friday to$48.78 at the close of NewYork Stock Exchange trading. It was at $40.74 on May 10 before the company admitted it was losing billions of dollars onthe trades.
Dimon's total compensation, as presented according to theU.S. Securities and Exchange Commission format, was $18.7 million in 2012, down from $23.1 million in 2011. Company and SEC pay counts can differ with the timing of incentive compensation.
The comment, contained inthe opening pages of the company's proxy filing ahead of its annual meeting on May 21, is a more vigorous affirmation of the same view the paneltook last year when it opposed an unsuccessful shareholder proposal to split the roles.
The remark comes even after the board said in January that it had cut Dimon's annual compensation in half for 2012 to $11.5 million after the company lost $6.2 billion on derivatives in the so-called "London Whale" trades.
The board said the"strength and independence" of its oversight had been demonstrated by actions the company took after thetrading debacle.
The company has since overhauled its risk controlsand replaced some of its top executives.
The new proxy includes a fresh shareholder proposalcalling for different peopleto hold the posts of CEO and chairman. It is similar to last year's proposal which received 40 percentof the vote.
That vote came five days after the company suddenly announced on May 10 that it had a loss of more than $2 billion on derivatives trades. The size of the loss grew afterward and investors learned more details from congressional hearings about how badly the company had handled its investment portfolio.
Proponents of this year's proposal, who include managers of pension fundsfor New York City employees and for the American Federation of State, County and Municipal Employees, haveadded the derivatives loss as a reason to separate the roles.
The board, as it did last year, said it while it is glad to have Dimon in both roles it has not ruled out separating the posts in the future.
This year's meeting, like last year's, is to be held in a JPMorgan office park in Tampa, Florida.
JPMorgan shares have recovered all of the marketvalue they lost after the derivatives debacle. The stock traded up 0.9 percent on Friday to$48.78 at the close of NewYork Stock Exchange trading. It was at $40.74 on May 10 before the company admitted it was losing billions of dollars onthe trades.
Dimon's total compensation, as presented according to theU.S. Securities and Exchange Commission format, was $18.7 million in 2012, down from $23.1 million in 2011. Company and SEC pay counts can differ with the timing of incentive compensation.
List of all the banks in Israel
Bank of Israel
2 Kaplan Street
Kiryat Ben Gurion
P.O.Box 780
Jerusalem 91007
Telephone: +972 2 655-2211
Fax: +972 2 652-8805
Mizrahi Tefahot Bank Ltd
P.O.B. 3450,
7 Jaboutinsky St Ramat Gan 52520
Tetephone: +972 3-7559000
Fax: +972 3-7559913
Arab Israel Bank Ltd
P.O.B. 207,
48 Bar Yehuda Nesher 36601
Telephone: +972 4-8205222
Fax: +972 4-8205250
Bank Hapoalim B.M
P.O.B. 27,
50 Rothschild Blvd Tel Aviv 66883
Telephone: +972 3-5673333
Fax: +972 3-5607028
Bank Leumi Le-Israel B.M
P.O.B. 2,
24-32 Yehuda Halevy St Tel Aviv 65136
Telephone: +972 3-5148111
Fax: +972 3-5148360
Bank Massad Ltd
P.O.B. 2639, 80 80,
Rothschild Blvd Tel Aviv 61025
Telephone: +972 3-5641333
Fax +972 3-5602384
Bank of Jerusalem Ltd
P.O.B. 2255,
2 Herbert Samuel St Jerusalem 91022
Telephone: +972 2-6706211
Fax: +972 2-6246742
Bank Otsar Ha-hayal Ltd
P.O.B. 3506,
11 Menahem Begin st., Ramat-Gan 52136
Telephone: +972 3-7556000
Fax: +972 3-7556007
Bank Poalei Agudat Israel Ltd
P.O.B. 29741,
9 Achad Ha'am St Tel Aviv 61297
Telephone: +972 3-5196650
Fax: +972 3-5196785
Bank Yahav Ltd
P.O.B. 36333,
80 Yirmiyahu St Jerusalem 91363
+972 2-5009666
Fax: +972 2-5385869
Dexia Israel Bank Ltd
Ha'tichon Tower Tel Aviv 64739
Telephone: +972 3-7647600
Fax +972 3-6868336
Israel Discount Bank Ltd
P.O.B. 456,
27-31 Yehuda Halevy St Tel Aviv 61003
Telephone: +972 3-5145555
Fax: +972 3-5145365
Mercantile Discount Bank Ltd
P.O.B. 1292,
103 Allenby St Tel Aviv 61012
Telephone: +972 3-5647333
Fax: +972 3-5647205
The First International Bank of Israel Ltd
P.O.B. 29036,
9 Ahad Ha'am St Tel Aviv 61290
Telephone: +972 3-5196111
Fax: +972 3-5100316
UBank Ltd
P.O.B. 677,
38 Rothschild Blvd Tel Aviv 61006
Telephone: +972 3-5645645
Fax: +972 3-5645210
Union Bank of Israel Ltd
P.O.B. 2428,
6-8 Achuzat Bait St, Tel Aviv 61024
Telephone: +972 3-5191111
Fax: +972 3-5191274
Industrial Development Bank of Israel Ltd.
2 Dafna Street
P.O.Box 33480
Tel Aviv 61334
Telephone: +972 3 697-2727
Fax: +972 3 697-2893/0
2 Kaplan Street
Kiryat Ben Gurion
P.O.Box 780
Jerusalem 91007
Telephone: +972 2 655-2211
Fax: +972 2 652-8805
Mizrahi Tefahot Bank Ltd
P.O.B. 3450,
7 Jaboutinsky St Ramat Gan 52520
Tetephone: +972 3-7559000
Fax: +972 3-7559913
Arab Israel Bank Ltd
P.O.B. 207,
48 Bar Yehuda Nesher 36601
Telephone: +972 4-8205222
Fax: +972 4-8205250
Bank Hapoalim B.M
P.O.B. 27,
50 Rothschild Blvd Tel Aviv 66883
Telephone: +972 3-5673333
Fax: +972 3-5607028
Bank Leumi Le-Israel B.M
P.O.B. 2,
24-32 Yehuda Halevy St Tel Aviv 65136
Telephone: +972 3-5148111
Fax: +972 3-5148360
Bank Massad Ltd
P.O.B. 2639, 80 80,
Rothschild Blvd Tel Aviv 61025
Telephone: +972 3-5641333
Fax +972 3-5602384
Bank of Jerusalem Ltd
P.O.B. 2255,
2 Herbert Samuel St Jerusalem 91022
Telephone: +972 2-6706211
Fax: +972 2-6246742
Bank Otsar Ha-hayal Ltd
P.O.B. 3506,
11 Menahem Begin st., Ramat-Gan 52136
Telephone: +972 3-7556000
Fax: +972 3-7556007
Bank Poalei Agudat Israel Ltd
P.O.B. 29741,
9 Achad Ha'am St Tel Aviv 61297
Telephone: +972 3-5196650
Fax: +972 3-5196785
Bank Yahav Ltd
P.O.B. 36333,
80 Yirmiyahu St Jerusalem 91363
+972 2-5009666
Fax: +972 2-5385869
Dexia Israel Bank Ltd
Ha'tichon Tower Tel Aviv 64739
Telephone: +972 3-7647600
Fax +972 3-6868336
Israel Discount Bank Ltd
P.O.B. 456,
27-31 Yehuda Halevy St Tel Aviv 61003
Telephone: +972 3-5145555
Fax: +972 3-5145365
Mercantile Discount Bank Ltd
P.O.B. 1292,
103 Allenby St Tel Aviv 61012
Telephone: +972 3-5647333
Fax: +972 3-5647205
The First International Bank of Israel Ltd
P.O.B. 29036,
9 Ahad Ha'am St Tel Aviv 61290
Telephone: +972 3-5196111
Fax: +972 3-5100316
UBank Ltd
P.O.B. 677,
38 Rothschild Blvd Tel Aviv 61006
Telephone: +972 3-5645645
Fax: +972 3-5645210
Union Bank of Israel Ltd
P.O.B. 2428,
6-8 Achuzat Bait St, Tel Aviv 61024
Telephone: +972 3-5191111
Fax: +972 3-5191274
Industrial Development Bank of Israel Ltd.
2 Dafna Street
P.O.Box 33480
Tel Aviv 61334
Telephone: +972 3 697-2727
Fax: +972 3 697-2893/0
OPERATE OR TEMPORARY SHUTDOWN
Operate or Temporarily Shutdown
Differential cost analysis is also used when a business is confronted with the possibility of a temporary shutdown. This type of analysis has to determine whether in the short-run a firm is better off operating than not operating. As long as the product sold recover their variable costs and make a contribution towards the recovery of fixed costs, it may be preferable to operate and not to shutdown. Also management should consider the investment in the training of its employees which would be lost in the event of temporary shutdown. Recruiting and training new workers would add to present costs. Another factor is the loss of established markets. Also a temporary shutdown does not eliminate all costs. Depreciation, taxes, interest, and insurance costs are incurred during shutdown also. The other benefits which should be considered are the following: avoiding operating losses, savings in maintenance and repair costs, savings in indirect labour costs and savings in fixed costs.
Even if sales do not recover the variable cost and the portion of fixed cost that is avoidable, the firm may still be better off operating than shutting down the facility. Closing a facility and subsequently reopening it is a costly process. The shutdown may necessitate the incurrence of maintenance procedures in order to preserve machinery and buildings during periods of inactivity (e.g. rust inhibitors, dust covers, security equipment, etc). The shutdown also may require the incurrence of legal expenditures and employee maintenance pay. During the shutdown period, some employees will probably be lost (i.e., they may not wait until the facility is reopened to go back to work), in which case the investment in the training of those employees will be lost. The morale of other employees, as well as company goodwill, may be adversely affected, and the recruiting and training of replacement workers that must be incurred when the facility is later reopened may add to costs. Although difficult to quantify, the loss of established market share is also a factor to be considered. When a company leaves a market for a while, its customers tend to forget about the company’s product. As a consequence, re-entering the market at a later time will probably require re-educating consumers about the company’s product. These shutdown costs must be weighed against losses from continued operations.
Monday 18 March 2013
ADVANTAGES AND DISADVANTAGES OF INTERNAL CONTROL SYSTEM
ADVANTAGES AND DISADVANTAGES OF INTERNAL CONTROL SYSTEM
Advantages of ICS to the Auditor
a) ICS will reduce the amount of audit work to be done in so far as the auditor will be able to use systems based audits to apply tests which will facilitate his audit work.
b) A strong ICS will minimise chances of errors and frauds, and the introduction of inter-checking supervision and improved custody will in turn minimise liabilities to third parties, who would have depended on his opinion with greater surety and speed.
c) Will reduce the amount of audit evidence to be gathered, because it will facilitate reaching and using a greater variety of audit evidence available within the business. This will enable him to form an opinion with greater surety and speed.
d) The presence of an internal check system strengthens the credibility of audit evidence gathered.
e) ICS minimises the work load and the time need to take in order to produce his report.
f) The preparation of an ICS will identify those areas prone to errors and frauds, which will enable the auditor to plan his audit work so that he allocates more time and effort to those areas where for organisational reasons the internal check system is weakest.
g) ICS emphasises the use of control accounts thus assuring the auditor of up to date account reconciliation information which will facilitate his examinations.
h) ICS enables him reduce the sample size to be tested and thus facilitate his ability to carry out as many varied audit checks as possible.
i) ICS can only be strong normally with support of a strong internal audit function which in turn enables the auditor to use internal auditor’s work to facilitate his work.
j) A strong ICS boosts accountability which depends on clearly segregated and defined duties and responsibilities and this will enable the auditor to know who to contact in case of difficulties.
k) It also helps him to give quality advice to management; this in turn may minimise his work load in future audits.
l) ICS enables the auditor to have greater knowledge of his client’s business and facilitates the drawing up of a balanced audit opinion.
Disadvantages of ICS to the Auditor
1. The management may over rely on the strength of the ICS and therefore relax their supervision which may leave room for errors and frauds thus exposing the auditor to potential civil liabilities.
2. The presence of ICS may lead to the auditor reducing the volume of examination carried out which may lead to smaller samples of data thus leaving other areas to possibilities of errors and frauds which may expose him to civil liabilities.
3. It may be frustrated by management through collusion and manipulation which may mislead the auditor’s opinion leading to biased reports.
4. The presence of ICS is supposed to minimise the auditor’s volume of tests but not his liabilities which means that its strength may leave some errors and frauds undetected due to relaxed tests. This will increase his liabilities. ICS may be manipulated so that errors and frauds by the management cannot be easily detected and this may lead to a biased opinion.
5. ICS may reduce the auditor’s vigilance and observations with an unfavourable effect on the quality of the audit.
6. ICS may be abused by the internal auditors through collusion with the management and this may lead to the external auditor being mislead.
Advantages of ICS to the Client
a. Safeguarding client’s assets against:
a) Misuse
b) Misappropriation
c) Manipulations
d) Abuse of the Company’s assets (for reasons that will not benefit the Company)
e) Facilitates optimal use of the Company’s assets.
b. Reduces audit fees. This is because less audit work is needed and less audit staff.
Increased efficiency through management supervision and a defined organisation chart. Routine and automatic checks also increase efficiency.
c. Chances of errors and frauds are minimised.
d. This ensures minimum losses, facilitates audit work and hence early reports and attainment of budgeted performance.
e. Facilitates corrective measures in so far as the objectives of the business are better defined and therefore the facilities available can be suitably directed to their achievements.
f. Facilitates up to date records.
g. This is advantageous in that is prompts decisions through feed back to management which helps detect irregularities.
h. Leads to balanced opinion (unqualified report) improving public opinion of the business.
i. This helps in raising finances by selling shares through public sale and improving investment
implementation.
j. It boosts morale of staff through motivation of supervision. This may lead to high output and high profitability.
k. ICS helps in the redress of disastrous decisions especially in high risk situation. This is done through close application of management controls in development situations.
l. ICS assists in the co-ordination of operations. This is done through definition of duties and responsibilities of all employees and it boosts efficiency in the:
1. Carrying out of operations,
2. Efficiency in delegation,
3. Efficiency in execution.
Disadvantages of ICS to the Client
a. ICS is expensive to install and maintain. For example, the physical control security systems require qualified personnel to maintain them and constant servicing.
b. ICS could lead to a problem of over reliance on the ICS. This may lead to relaxation in supervision and allow manipulation of accounts and assets and can also bring about inefficiencies. Maintaining controls requires constancy and consistency.
c. If not well instituted it may encourage over staffing.
d. Rigid implementation may lead to a slowdown in the operation of the business.
e. The ICS requires continuos updating as the organisation changes, if not the ICS may become increasingly obsolete.
f. Use of wrong controls may expose the Company to more problems, e.g. errors and frauds. These are more easily perpetrated if the ICS used is inappropriate.
g. ICS may be frustrated if through changes in company organisation the checks become uncoordinated.
TYPES OF INTERNAL CONTROLS
TYPES OF INTERNAL CONTROLS
This refers to the various types of control procedures that management can put in place in running the operations of the company. The mix of types of controls implemented by management will depend on the control objectives in each accounting area.
(a) Organizational plans/controls
Companies should have proper organisation plans.
They seek to ensure that the entity is properly departmentalized. The functions of every department are specified and the duties of every individual in the department are specified. Delegation of authority and limits of authority should be well and clearly defined. Such a plan boosts accountability within the organisation and reduces duplication of effort.
(b) Segregation of duties
This refers to the separation of the various duties and responsibilities such that one person cannot process and record complete transactions from beginning to the end without being checked by another person. E.g. in the purchase of a company’s fixed assets a single individual should not authorise the purchase, place the order, receive the asset and record the transaction in the accounting records.
To minimise the risk of error and/or intentional manipulation of information. In this regard for every transaction the following functions should be performed by different individuals and departments as much as possible and practicable.
1. Initiation
2. Authorisation- different levels of management should be given authority limits as to what they can authorise or commit the company’s resources. The authority limit should depend on the position, integrity, qualifications and competence.
3. Execution- transactions should be carried out by persons independent from those who authorise the transactions. If one person authorises expenditure a different person should execute.
4. Custody of the asset- officials authorisin/executing a transaction should not have custody to the assets arising out of the transaction.
5. Recording
6. Segregation of duties also covers internal check which refers to the activities of one person must be complementary to the activities of another or subjected to independent checking.
(c) Physical controls
These are security measures concerned with the custody of assets by limiting access to authorized people only. Restriction of access to valuable assets to only authorized persons. There should be direct measures and indirect measures.
Direct measures include:-
a. Lock and key
b. Watchmen or guards
c. Proper fence
d. Mirrors
e. Closed circuit TV’s
Indirect measures will include documentation of all transactions. Controls aim at restricting valuable, portable, exchangeable and desirable assets.
(d) Authorisation and approval
Authorisation should be done by responsible persons. In other words a transaction that commits organisation’s resources should be subject to authorisation and approval by a responsible official. The limits for authorisation should also be specified.
(e) Arithmetical and accounting control.
These are controls within the accounting function, which check that transactions are authorized, correctly and accurately recorded. This is aimed at ensuring completeness and accuracy of the accounting records.
Key features are:
i. Use of standardised documentation raised at every stage of the transaction.
ii. Use of pre-numbered documents.
iii. Documents should be issued in sequence.
iv. Monitor movement of documents by use of a register.
v. Production of exceptional reports for example when a local purchase order has been raised and the order has not been fulfilled by the supplier.
vi. Reconciliation between the different accounts and related control accounts.
(f) Personnel
Proper functioning of any system is dependent on the competence and integrity of those operating it. The entity must therefore recruit competent staff that has integrity. Staff should be assigned responsibilities that match their capabilities. Staff should undergo proper training to ensure that the company’s operations are carried out in the best way possible.
(g) Supervision
Day to day transactions and their recording should be subjected to supervision by competent responsible officials.
(h) Management controls
These controls are exercised by management outside the day to day routine of the system. They include:
i. Review of management accounts.
ii. Comparison of actual performance with budgets.
iii. Internal audit function.
iv. Any other special review procedures.
(i) Rotation of duties
Duties should be rotated between personnel at the same level. Staff should be encouraged to take annual leave.
(j) Routine and automatic checks.
These are checks conducted on routine duties and operations to ensure that they are operating efficiently. Such checks are conducted on a surprise basis to minimise errors and frauds. These include controls such as surprise cash counts and physical inspection of fixed assets.
(k) Internal audit
This is a control function set up by management to review the accounting and internal control systems. Internal audit carries out continuous evaluation of the operating effectiveness of the internal control policies and procedures. The findings and recommendations are reported to management.
This refers to the various types of control procedures that management can put in place in running the operations of the company. The mix of types of controls implemented by management will depend on the control objectives in each accounting area.
(a) Organizational plans/controls
Companies should have proper organisation plans.
They seek to ensure that the entity is properly departmentalized. The functions of every department are specified and the duties of every individual in the department are specified. Delegation of authority and limits of authority should be well and clearly defined. Such a plan boosts accountability within the organisation and reduces duplication of effort.
(b) Segregation of duties
This refers to the separation of the various duties and responsibilities such that one person cannot process and record complete transactions from beginning to the end without being checked by another person. E.g. in the purchase of a company’s fixed assets a single individual should not authorise the purchase, place the order, receive the asset and record the transaction in the accounting records.
To minimise the risk of error and/or intentional manipulation of information. In this regard for every transaction the following functions should be performed by different individuals and departments as much as possible and practicable.
1. Initiation
2. Authorisation- different levels of management should be given authority limits as to what they can authorise or commit the company’s resources. The authority limit should depend on the position, integrity, qualifications and competence.
3. Execution- transactions should be carried out by persons independent from those who authorise the transactions. If one person authorises expenditure a different person should execute.
4. Custody of the asset- officials authorisin/executing a transaction should not have custody to the assets arising out of the transaction.
5. Recording
6. Segregation of duties also covers internal check which refers to the activities of one person must be complementary to the activities of another or subjected to independent checking.
(c) Physical controls
These are security measures concerned with the custody of assets by limiting access to authorized people only. Restriction of access to valuable assets to only authorized persons. There should be direct measures and indirect measures.
Direct measures include:-
a. Lock and key
b. Watchmen or guards
c. Proper fence
d. Mirrors
e. Closed circuit TV’s
Indirect measures will include documentation of all transactions. Controls aim at restricting valuable, portable, exchangeable and desirable assets.
(d) Authorisation and approval
Authorisation should be done by responsible persons. In other words a transaction that commits organisation’s resources should be subject to authorisation and approval by a responsible official. The limits for authorisation should also be specified.
(e) Arithmetical and accounting control.
These are controls within the accounting function, which check that transactions are authorized, correctly and accurately recorded. This is aimed at ensuring completeness and accuracy of the accounting records.
Key features are:
i. Use of standardised documentation raised at every stage of the transaction.
ii. Use of pre-numbered documents.
iii. Documents should be issued in sequence.
iv. Monitor movement of documents by use of a register.
v. Production of exceptional reports for example when a local purchase order has been raised and the order has not been fulfilled by the supplier.
vi. Reconciliation between the different accounts and related control accounts.
(f) Personnel
Proper functioning of any system is dependent on the competence and integrity of those operating it. The entity must therefore recruit competent staff that has integrity. Staff should be assigned responsibilities that match their capabilities. Staff should undergo proper training to ensure that the company’s operations are carried out in the best way possible.
(g) Supervision
Day to day transactions and their recording should be subjected to supervision by competent responsible officials.
(h) Management controls
These controls are exercised by management outside the day to day routine of the system. They include:
i. Review of management accounts.
ii. Comparison of actual performance with budgets.
iii. Internal audit function.
iv. Any other special review procedures.
(i) Rotation of duties
Duties should be rotated between personnel at the same level. Staff should be encouraged to take annual leave.
(j) Routine and automatic checks.
These are checks conducted on routine duties and operations to ensure that they are operating efficiently. Such checks are conducted on a surprise basis to minimise errors and frauds. These include controls such as surprise cash counts and physical inspection of fixed assets.
(k) Internal audit
This is a control function set up by management to review the accounting and internal control systems. Internal audit carries out continuous evaluation of the operating effectiveness of the internal control policies and procedures. The findings and recommendations are reported to management.
Tuesday 12 March 2013
German Central Bank Doubles Reserves
FRANKFURT — Germany’s central bank said Tuesday that it nearly doubled the reserves it holds to cover possible losses, in a not-so-subtle expression of its uneasiness with emergency measures the European Central Bank has taken to combat the euro crisis.The Bundesbank said it raised its risk provisions, money it sets aside to cover losses such as a default on euro zone bond holdings, to 14.4 billion euros, or$18.7 billion, from 7.7 billion euros a year earlier. The bank’s profit for the year, which it transfers to the German government, was little changed, rising to 664 million euros from 643 million euros.
Jens Weidmann, the Bundesbank president, saidthe increase in loss reserves “takes appropriate account of the risks on the Bundesbank’s balance sheet.”
But the decision to set asidefurther billions may also be interpreted as a verdict by Mr. Weidmann on the European Central Bank’s measures he has long criticized, such as purchases of Italian and Greek government bonds to try tokeep those countries’ borrowing costs under control.
Mr. Weidmann, a member of the European bank’s governing council, has played the role of Cassandra as Mario Draghi, the bank’s president, has led a vast expansion of the central bank’s powers.
Fears the euro zone will crumble have receded since Mr. Draghi promised last year to buy bonds of troubled euro zone countries to contain their borrowing costs. But Mr. Weidmann has often complained that the E.C.B. has gone too far, endangering its independence from political leaders and its mandate to guard price stability above all else.
On Tuesday Mr. Weidmann repeated his contention thatthe best solution to the eurozone crisis is for countries to get government spending under control and improve the performance of their economies. He said that relative calm on financial markets was due not only tobank policy, but also to progress by political leaders.
“The reduction of tension on financial markets should by no means lead to neglect of the necessary structural reforms,” Mr. Weidmann said in a statement.
The Bundesbank decision to bolster its reserves may also reinforce fears among Germans that their money isat risk because of European bank policies designed to keep the euro zone from falling apart. The Bundesbank is one of Germany’s most respected institutions, widely regarded as a bulwark against less prudent members of the euro zone.
Since 2010 the E.C.B. has acquired bonds from troubled euro zone countries valued at 209 billion euros, with Italian government bonds accounting for nearly half ofthat amount. In an attempt to encourage lending to businesses and consumers, the E.C.B. has also vastly expanded the collateral that commercial banks can post in return for cheap central bank loans.
The 17 national central banks in the euro zone, which carry out much of thework involved in running a currency union, would share the losses if a country were to default on its bondsor if collateral posted by a bank were to lose value.
Among Germans, there is widespread fear that Germany would bear much more than its share of the cost if the euro zone fell apart. The Bundesbank acts as the clearinghouse for large transactions in the currency zone, and other central banks have what amount to large overdrafts.
At a press conference to present the Bundesbank’s annual results, Mr. Weidmann repeated warnings that France was slipping behind because of its failure to make economic reforms. But he acknowledged that E.C.B. policies had not yet led to an increase in inflation.
“In the short term, we in the euro area have, if anything, declining inflationrisks,” he said. Mr. Weidmann also said the German economy was in good shape.
The Bundesbank, like othercentral banks in the euro zone, continues to do much of the day-to-day work of the euro zone, including making sure there is enough money in circulation, storing gold reserves and acting as go-between for large payments between commercial banks.
Jens Weidmann, the Bundesbank president, saidthe increase in loss reserves “takes appropriate account of the risks on the Bundesbank’s balance sheet.”
But the decision to set asidefurther billions may also be interpreted as a verdict by Mr. Weidmann on the European Central Bank’s measures he has long criticized, such as purchases of Italian and Greek government bonds to try tokeep those countries’ borrowing costs under control.
Mr. Weidmann, a member of the European bank’s governing council, has played the role of Cassandra as Mario Draghi, the bank’s president, has led a vast expansion of the central bank’s powers.
Fears the euro zone will crumble have receded since Mr. Draghi promised last year to buy bonds of troubled euro zone countries to contain their borrowing costs. But Mr. Weidmann has often complained that the E.C.B. has gone too far, endangering its independence from political leaders and its mandate to guard price stability above all else.
On Tuesday Mr. Weidmann repeated his contention thatthe best solution to the eurozone crisis is for countries to get government spending under control and improve the performance of their economies. He said that relative calm on financial markets was due not only tobank policy, but also to progress by political leaders.
“The reduction of tension on financial markets should by no means lead to neglect of the necessary structural reforms,” Mr. Weidmann said in a statement.
The Bundesbank decision to bolster its reserves may also reinforce fears among Germans that their money isat risk because of European bank policies designed to keep the euro zone from falling apart. The Bundesbank is one of Germany’s most respected institutions, widely regarded as a bulwark against less prudent members of the euro zone.
Since 2010 the E.C.B. has acquired bonds from troubled euro zone countries valued at 209 billion euros, with Italian government bonds accounting for nearly half ofthat amount. In an attempt to encourage lending to businesses and consumers, the E.C.B. has also vastly expanded the collateral that commercial banks can post in return for cheap central bank loans.
The 17 national central banks in the euro zone, which carry out much of thework involved in running a currency union, would share the losses if a country were to default on its bondsor if collateral posted by a bank were to lose value.
Among Germans, there is widespread fear that Germany would bear much more than its share of the cost if the euro zone fell apart. The Bundesbank acts as the clearinghouse for large transactions in the currency zone, and other central banks have what amount to large overdrafts.
At a press conference to present the Bundesbank’s annual results, Mr. Weidmann repeated warnings that France was slipping behind because of its failure to make economic reforms. But he acknowledged that E.C.B. policies had not yet led to an increase in inflation.
“In the short term, we in the euro area have, if anything, declining inflationrisks,” he said. Mr. Weidmann also said the German economy was in good shape.
The Bundesbank, like othercentral banks in the euro zone, continues to do much of the day-to-day work of the euro zone, including making sure there is enough money in circulation, storing gold reserves and acting as go-between for large payments between commercial banks.
Thursday 7 February 2013
Sprint has just released its financial report for Q4 2012. Compared to Q3's net loss of $767 million
America's third-largest carrier added 401,000 postpaid customers over the quarter, but lost 644,000 from its Nextel network. Over 2012 as awhole, Sprint added a total of 1.5 million postpaid subscribers, and when offset against losses from the Nextel network, added a total of 605,000 new customers over its entire network — that includespostpaid, prepaid, and wholesale. The Nextel network is set to close down later this year, and Sprint has failed to convince a large number of Nextel subscribers to switch to its network.
The fourth quarter of 2012 is the first full quarter to close since Sprint's acquisition by Japanese carrier SoftBank was announced, but since that deal hasn't yet closed, it has yet to dramatically affect Sprint's business. Sprint says the deal is still tracking to close by the middle of this year, so we should see the effects of SoftBank in thenot too distant future.
The fourth quarter of 2012 is the first full quarter to close since Sprint's acquisition by Japanese carrier SoftBank was announced, but since that deal hasn't yet closed, it has yet to dramatically affect Sprint's business. Sprint says the deal is still tracking to close by the middle of this year, so we should see the effects of SoftBank in thenot too distant future.
Wednesday 6 February 2013
AGENCY
AGENCY -- A business that provides a particular service to a company (that are outside of the country where the agency is located). Dependent agency constitutes a permanent establishment for the other company and the income achieved through the agency is taxed on the income earned from the country where the agency is located whereas independent agency does not.
Tuesday 5 February 2013
AGGREGATION
AGGREGATION -- Term used to denote the addingtogether of the taxpayer's income from all sources in order to determine the applicable tax rate for income tax purposes.
ALIEN, TAX TREATMENT OF
ALIEN, TAX TREATMENT OF -- A person who is not a citizen of the country in which he or she lives. In general, most countries do not distinguish between nationals and aliens for tax purposes; rather tax liabilityis based on residence and/or domicile.
ALIEN, TAX TREATMENT OF
ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.
ALIENATION OF INCOME
ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.
ALIENATION OF INCOME
ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.
ALLOCATION
ALLOCATION -- The apportionment or assignment of income or expense for various tax purpose, e.g., between permanent establishments in various jurisdictions
ALLOWANCE
ALLOWANCE -- Deduction or exemptions generally made in computing incometaxes, inheritance and gift taxes and some forms of sales taxes.
AMORTIZATION
AMORTIZATION -- Processof writing off the cost of an intangible asset over its useful life.
AMORTIZATION METHOD
AMORTIZATION METHOD -- Method of computing a credit under a VAT regime where investment goods are purchased which have a useful life in the businessfor a period exceeding oneyear. The tax embodied in the price paid for the assetsmay be credited to the trader over a period of years corresponding to the life of the assets.
APA -- See: Advance Pricing Arrangement
APA -- See: Advance Pricing Arrangement
Wednesday 30 January 2013
Barclays ex-pay chief disagreed with Diamond's bonus
LONDON, Jan 30 (Reuters) - The former head of remuneration at Barclays said she clashed with the UK bank's board over the annual bonus of former boss Bob Diamond,and described the bonus culture in banking as"obscene".
Alison Carnwath, who quitin July at a time of turmoilfor the bank following its fine for rigging Libor interest rates, said Diamond had been reluctant to accept that pay at Barclays was high and was "overly protective of his investment banking franchise".
Carnwath, who cited personal reasons for her departure, said on Wednesday she thought Diamond shouldn't have got a bonus for 2011 because the bank's returns were weak.
"It was for this reason thatI disagreed with the board Chairman's recommendation on Mr Diamond's annual bonus for 2011. I recommendedzero.
"I was alone in my view both on the committee which I chaired and on the board," she said in a written submission prior toappearing before UK lawmakers.
She said Marcus Agius, then chairman, would be in a better position to explain how the bonus award had been reached.
Diamond was paid 6.3 million pounds for 2011, including a deferred share bonus of 2.7 millionpounds and a long-term incentive award of 2.25 million.
Carnwath joined the Barclays board in August 2010 and built a reputation for being an uncompromising boardroom presence.
"A culture of entitlement has emerged in banking for a variety of reasons ... this has resulted in the fear of losing good people, obscene levels of award in a minority of cases and excessive reward in many cases for the investment banking community and particularly those in the front office," she said.
Diamond and Agius quit after the Libor scandal erupted in June. Carnwath was criticised forallowing the final pay awards to them, but she denied at the time that there had been any tensions between her andAgius despite reports theyhad clashed.
"Barclays were demanding too much patience from their shareholders and were insufficiently sensitive to the political and economicenvironment and the hostile attitude to banks generally," Carnwath said.
Alison Carnwath, who quitin July at a time of turmoilfor the bank following its fine for rigging Libor interest rates, said Diamond had been reluctant to accept that pay at Barclays was high and was "overly protective of his investment banking franchise".
Carnwath, who cited personal reasons for her departure, said on Wednesday she thought Diamond shouldn't have got a bonus for 2011 because the bank's returns were weak.
"It was for this reason thatI disagreed with the board Chairman's recommendation on Mr Diamond's annual bonus for 2011. I recommendedzero.
"I was alone in my view both on the committee which I chaired and on the board," she said in a written submission prior toappearing before UK lawmakers.
She said Marcus Agius, then chairman, would be in a better position to explain how the bonus award had been reached.
Diamond was paid 6.3 million pounds for 2011, including a deferred share bonus of 2.7 millionpounds and a long-term incentive award of 2.25 million.
Carnwath joined the Barclays board in August 2010 and built a reputation for being an uncompromising boardroom presence.
"A culture of entitlement has emerged in banking for a variety of reasons ... this has resulted in the fear of losing good people, obscene levels of award in a minority of cases and excessive reward in many cases for the investment banking community and particularly those in the front office," she said.
Diamond and Agius quit after the Libor scandal erupted in June. Carnwath was criticised forallowing the final pay awards to them, but she denied at the time that there had been any tensions between her andAgius despite reports theyhad clashed.
"Barclays were demanding too much patience from their shareholders and were insufficiently sensitive to the political and economicenvironment and the hostile attitude to banks generally," Carnwath said.
Top Causes of Credit Default
An adverse credit rating by receiving a credit default can impact you applications for credit for 5-7 years. Most people don't realize the impact of receiving a credit default until it's too late. A credit default can impact your applications for any credit such as obtaining phone or internet accounts, or even various other home or business services. A credit default is something that can be avoided by simply understanding why people have issues, and how they can be avoided. By being more informed about people who deal with a credit default, you can help to make sure that you do not find yourself in the same situation. While there are seemingly endless causes for a credit default, there are three major causes.Know these, as it can help you avoid a credit default.
Unknown Missed Payments
Many people only realize they have a Credit Default when they are declined for some form of credit. There has been a credit default listed on their Credit Reportand it has resulted in the decline. They may not even have any had any financial issues, but may have only mismanaged a bill or a service or phone contract. You may think your bill has been taken care of by closing the account; but if you cancel a contract early you may still have cancellation fees payable. It is quite common for the feesto canceled a telephone contract to be anywhere from $2000 to $3000. The Phone contract will at times include the cost of the mobile handset, which can run into thousands of dollars. Other instances where a credit default is listed can be where a person has moved house, and there is an outstanding amount owing from a phoneor service bill.
Known Missed Payments
Some people, however, are completely aware they are facing credit defaults, but they are facing financial hardship and struggling to make their commitments. People do not simply decide to not pay their bills,it is a result of some other circumstance that puts them into this situation. The various situations that may put you at risk are:
- Divorce
- Sickness or inability to work.
- Loss of a job
- Failed Business
In these situations there is usually a loss of an income, but in the case of divorce there is an emotionally devastating event that affects how a person operates in their everyday life. There may be a change in living situation for both parties with a breakdown in communication, a ripe situation to cause a credit default.
Over committed by high interest debts
Over the last few years many people have applied for and received loans they could barely afford. As first home buyers they may need to spend money on buying furniture and getting their house in order and hence get themselves into large amounts of unsecured, high interest debt. A combination of credit cards, personal loans and a loss of an income can be devastating for a dual income family. The loss of anincome in these circumstances can be from the birth of a baby, or a sickness, or loss of a job.
Being informed and knowing about the causes ofcredit defaults can help youto keep yourself from receiving a credit default.
Unknown Missed Payments
Many people only realize they have a Credit Default when they are declined for some form of credit. There has been a credit default listed on their Credit Reportand it has resulted in the decline. They may not even have any had any financial issues, but may have only mismanaged a bill or a service or phone contract. You may think your bill has been taken care of by closing the account; but if you cancel a contract early you may still have cancellation fees payable. It is quite common for the feesto canceled a telephone contract to be anywhere from $2000 to $3000. The Phone contract will at times include the cost of the mobile handset, which can run into thousands of dollars. Other instances where a credit default is listed can be where a person has moved house, and there is an outstanding amount owing from a phoneor service bill.
Known Missed Payments
Some people, however, are completely aware they are facing credit defaults, but they are facing financial hardship and struggling to make their commitments. People do not simply decide to not pay their bills,it is a result of some other circumstance that puts them into this situation. The various situations that may put you at risk are:
- Divorce
- Sickness or inability to work.
- Loss of a job
- Failed Business
In these situations there is usually a loss of an income, but in the case of divorce there is an emotionally devastating event that affects how a person operates in their everyday life. There may be a change in living situation for both parties with a breakdown in communication, a ripe situation to cause a credit default.
Over committed by high interest debts
Over the last few years many people have applied for and received loans they could barely afford. As first home buyers they may need to spend money on buying furniture and getting their house in order and hence get themselves into large amounts of unsecured, high interest debt. A combination of credit cards, personal loans and a loss of an income can be devastating for a dual income family. The loss of anincome in these circumstances can be from the birth of a baby, or a sickness, or loss of a job.
Being informed and knowing about the causes ofcredit defaults can help youto keep yourself from receiving a credit default.
Combanation of option
Call & Put Buying Combinations
Straddle
The straddle is an unlimited profit, limited risk option trading strategy that is employed when the options trader believes thatthe price of the underlyingasset will make a strong move in either direction in the near future. It can be constructed by buying an equal number of at-the-money call and put options with the same expiration date.
Strangle
Like the straddle, the strangle is also a strategy that has limited risk and unlimited profit potential. The difference between the two strategies is that out-of-the-money options are purchased to construct the strangle, lowering the cost to establish the position but at the same time, a much larger move in the price of the underlying is required for the strategy to be profitable.
Strip
The strip is a modified, more bearish version of thecommon straddle. Construction is similar to the straddle except that the ratio of puts to calls purchased is 2 to 1.
Strap
The strap is a more bullish variant of the straddle. Twice the number of call options are purchased to modify the straddle into a strap.
Synthetic Underlying
Combinations can be used to create options positions that have the same payoff pattern as the underlying. These positions are known as synthetic underlying positions . Using equity options as an example, a synthetic long stock position can be created by buying at-the-money call and selling an equal number of at-the-money put options.
Straddle
The straddle is an unlimited profit, limited risk option trading strategy that is employed when the options trader believes thatthe price of the underlyingasset will make a strong move in either direction in the near future. It can be constructed by buying an equal number of at-the-money call and put options with the same expiration date.
Strangle
Like the straddle, the strangle is also a strategy that has limited risk and unlimited profit potential. The difference between the two strategies is that out-of-the-money options are purchased to construct the strangle, lowering the cost to establish the position but at the same time, a much larger move in the price of the underlying is required for the strategy to be profitable.
Strip
The strip is a modified, more bearish version of thecommon straddle. Construction is similar to the straddle except that the ratio of puts to calls purchased is 2 to 1.
Strap
The strap is a more bullish variant of the straddle. Twice the number of call options are purchased to modify the straddle into a strap.
Synthetic Underlying
Combinations can be used to create options positions that have the same payoff pattern as the underlying. These positions are known as synthetic underlying positions . Using equity options as an example, a synthetic long stock position can be created by buying at-the-money call and selling an equal number of at-the-money put options.
Saturday 19 January 2013
Cyprus bank capital needs still being discussed -central bank
NICOSIA, Jan 19 (Reuters) - Cyprus said on Saturday that consultations on defining a bailout sum for its Greece-exposed banks were still in progress, effectively overshooting a deadline to decide how much aid the cash-strapped island will need from lenders.
Evaluating bank capital needs is crucial to determining how much Cyprus should receive in badly needed financial aid. The island, one of the euro zone's smallest economies, sought IMF and EU financial assistance in mid-2011.
"The assessment of technical details for the calculation of capital needs of banking institutions in Cyprus is still in progress," theisland's central bank said.
No further details were available.
Cypriot banks were badly burnt by an EU-sanctioned writedown of Greek sovereign debt held by private investors.
Investment managers PIMCO are carrying out the review of bank capital needs, and itsfindings are being assessed by a steering committee made up of lenders and Cypriots.
A definitive result had been expected by Jan.18.
A preliminary estimate of a draft bailout dealsaid Cyprus could need up to 10 billion euros to plug holes in its banking sector.
On that basis, its total bailout including fiscalrequirements could reach 17.0-17.5 billion euros, equivalent to the island's annual economic output.
A European Union official said on Friday thata bailout for Cyprus is likely to be concluded only in the second half of March, after Cypriot elections next month. (Reporting By Michele Kambas; Editing by Susan Fenton)
Evaluating bank capital needs is crucial to determining how much Cyprus should receive in badly needed financial aid. The island, one of the euro zone's smallest economies, sought IMF and EU financial assistance in mid-2011.
"The assessment of technical details for the calculation of capital needs of banking institutions in Cyprus is still in progress," theisland's central bank said.
No further details were available.
Cypriot banks were badly burnt by an EU-sanctioned writedown of Greek sovereign debt held by private investors.
Investment managers PIMCO are carrying out the review of bank capital needs, and itsfindings are being assessed by a steering committee made up of lenders and Cypriots.
A definitive result had been expected by Jan.18.
A preliminary estimate of a draft bailout dealsaid Cyprus could need up to 10 billion euros to plug holes in its banking sector.
On that basis, its total bailout including fiscalrequirements could reach 17.0-17.5 billion euros, equivalent to the island's annual economic output.
A European Union official said on Friday thata bailout for Cyprus is likely to be concluded only in the second half of March, after Cypriot elections next month. (Reporting By Michele Kambas; Editing by Susan Fenton)
Tuesday 15 January 2013
top hotels in hong kong
Hong Kong has some of the most extravagant hotels in the world and they often find themselves on global hotel top ten lists. These hotels know how to spoil you, and if your wallet is deep enough, you can take your pick of these Hong Kong luxury hotels Bishop Lei International House - 3 Star
4 Robinson Road
Mid Levels, Hong Kong
Tel.: (852) 2868-0828
Fax: (852) 2868-1551
Email: resvtion@bishopleihtl.com.hk
Website: www.bishopleihtl.com.hk
Conrad International Hong Kong - 5 Star
Pacific Place, 88 Queensway
Hong Kong
Tel.: (852) 2521-3838
Fax: (852) 2521-3888
Email: info@conrad.com.hk
Website: www.conrad.com.hk
Courtyard by Marriot Hong Kong - 4 Star
167 Conuaught Road West, Hong Kong
Tel.: (852) 3717-8888
Fax: (852) 3717-8288
Email: connie.ho@courtyard.com
Website: www.courtyardhongkong.com
Excelsior Hong Kong - 4 Star
281 Gloucester Road
Causeway Bay, Hong Kong
Tel.: (852) 2894-8888
Fax: (852) 2895-6459
Email: reserve-exhkg@mohg.com
Website: www.mandarinoriental.com
Grand Hyatt Hong Kong - 5Star
1 Harbour Road
Wanchai, Hong Kong
Tel.: (852) 2588-1234
Fax: (852) 2802-0677
Email: info@grandhyatt.com.hk
Website: www.hongkong.hyatt.com
Island Shangri-La Hong Kong - 5 Star
Pacific Place, Supreme CourtRoad
Central, Hong Kong
Tel.: (852) 2877-3838
Fax: (852) 2521-8742
Email: isl@shangri-la.com
Website: www.shangri-la.com
JW Marriott Hotel Hong Kong - 5 Star
One Pacific Place, 88 Queensway
Central, Hong Kong
Tel.: (852) 2810-8366
Fax: (852) 2845-0737
Email: hotel@marriott.com.hk
Reservations: room@marriott.com.hk
Website: www.marriot.com
Mandarin Oriental, Hong Kong - 5 Star
5 Connaught Road
Central, Hong Kong
Tel.: (852) 2522-0111
Fax: (852) 2810-6190
Email: mohkg-reservations@mohg.com
Website: www.mandarinoriental.com
Park Lane Hong Kong - 4 Star
310 Gloucester Road
Causeway Bay, Hong Kong
Tel.: (852) 2293-8888
Fax: (852) 2576-7853
Email: info@parklane.com.hk
Website: www.parklane.com.hk/contact_us.php
The Charterhouse Hotel, Hong Kong - 3 Star
209 - 219 Wanchai Road, Hong Kong
Tel.: (852) 2833 5566
Fax: (852) 2833 5888
Email: info@charterhouse.com
Website: www.charterhouse.com/contactus.php
Four Seasons Hotel Hong Kong - 6 Star
8 Finance Street, Central, Hong Kong, China
Tel.: (852) 3196-8888
Fax: (852) 3196-8899
Website: www.fourseasons.com/hongkong
Hotel LKF - 4 Star
33 Wyndham Street, Lan Kwai Fong, Centreal, Hong Kong
Tel.: (852) 3518-9688
Fax: (852) 3518-9699
Email: reservation@hotel.LFK.com.hk
Website: www.hotel-lkf.com.hk
Lanson Place Hotel - 4 Star
133 Leighton Road, Hong Kong
Tel.: (852) 3477-6888
Fax: (852) 3477-6999
Email: rsvn.lphk@lansonplace.com
Website: www.lansonplace.com
Novotel Century Hong Kong - 3 Star
238 Jaffe Road, Wan Chai, Hong Kong
Tel.: (852) 2598-8888
Fax: (852) 2598-8866
Email: business@century.com.hk
Website: www.novotel.hk
Regal Hong Kong Hotel - 4 Star
88 Yee Wo Street, CausewayBay, Hong Kong
Tel.: (852) 2890 6633
Fax: (852) 2881 0777
Email: rhk.info@RegalHotel.com
Website: www.regalhotel.com
Renaissance Harbour View Hotel Hong Kong - 4 Star
1 Harbour Road
Wanchai, Hong Kong
Tel.: (852) 2802-8888
Fax: (852) 2802-8833
Email: rhvhksal@hkstar.com
Website: www.renaissancehotel.com
The Garden View - YWCA - 3 Star
1 MacDonnell Road, Mid-levels, Hong Kong
Tel.: (852) 2877 3737
Fax: (852) 2845 6263
Email : ywgv@ywca.org.hk
Website: hotel.ywca.org.hk InterContinental Hong Kong - 5 Star
18 Salisbury Road, Kowloon,Hong Kong
Tel.: (852) 2721 1211
Fax: (852) 2739 4546
Email: hongkong@interconti.com
Website: hongkong-ic.intercontinental.com The Peninsula Hong Kong - 5 Star
Salisbury Road
Tsimshatsui, Kowloon
Tel.: (852) 2920-2888
Fax: (852) 2722-4170
Email: pen@peninsula.com
Website: www.peninsula.com
The Marco Polo Hong Kong Hotel - 5 Star
Harbour City, Kowloon
Tel.: (852) 2113-0088
Fax: (852) 2113-0011
Email: hongkong@marcopolohotels.com
Website: www.marcopolohotels.com
The Mira Hotel - 3 Star
118 Nathan Road, Tsimshatsui, Kowloon
Tel.: (852) 2368-1111
Fax: (852) 2369-1788
Email: sales@themirahotel.com
Website: www.themirahotel.com/en/home.html
4 Robinson Road
Mid Levels, Hong Kong
Tel.: (852) 2868-0828
Fax: (852) 2868-1551
Email: resvtion@bishopleihtl.com.hk
Website: www.bishopleihtl.com.hk
Conrad International Hong Kong - 5 Star
Pacific Place, 88 Queensway
Hong Kong
Tel.: (852) 2521-3838
Fax: (852) 2521-3888
Email: info@conrad.com.hk
Website: www.conrad.com.hk
Courtyard by Marriot Hong Kong - 4 Star
167 Conuaught Road West, Hong Kong
Tel.: (852) 3717-8888
Fax: (852) 3717-8288
Email: connie.ho@courtyard.com
Website: www.courtyardhongkong.com
Excelsior Hong Kong - 4 Star
281 Gloucester Road
Causeway Bay, Hong Kong
Tel.: (852) 2894-8888
Fax: (852) 2895-6459
Email: reserve-exhkg@mohg.com
Website: www.mandarinoriental.com
Grand Hyatt Hong Kong - 5Star
1 Harbour Road
Wanchai, Hong Kong
Tel.: (852) 2588-1234
Fax: (852) 2802-0677
Email: info@grandhyatt.com.hk
Website: www.hongkong.hyatt.com
Island Shangri-La Hong Kong - 5 Star
Pacific Place, Supreme CourtRoad
Central, Hong Kong
Tel.: (852) 2877-3838
Fax: (852) 2521-8742
Email: isl@shangri-la.com
Website: www.shangri-la.com
JW Marriott Hotel Hong Kong - 5 Star
One Pacific Place, 88 Queensway
Central, Hong Kong
Tel.: (852) 2810-8366
Fax: (852) 2845-0737
Email: hotel@marriott.com.hk
Reservations: room@marriott.com.hk
Website: www.marriot.com
Mandarin Oriental, Hong Kong - 5 Star
5 Connaught Road
Central, Hong Kong
Tel.: (852) 2522-0111
Fax: (852) 2810-6190
Email: mohkg-reservations@mohg.com
Website: www.mandarinoriental.com
Park Lane Hong Kong - 4 Star
310 Gloucester Road
Causeway Bay, Hong Kong
Tel.: (852) 2293-8888
Fax: (852) 2576-7853
Email: info@parklane.com.hk
Website: www.parklane.com.hk/contact_us.php
The Charterhouse Hotel, Hong Kong - 3 Star
209 - 219 Wanchai Road, Hong Kong
Tel.: (852) 2833 5566
Fax: (852) 2833 5888
Email: info@charterhouse.com
Website: www.charterhouse.com/contactus.php
Four Seasons Hotel Hong Kong - 6 Star
8 Finance Street, Central, Hong Kong, China
Tel.: (852) 3196-8888
Fax: (852) 3196-8899
Website: www.fourseasons.com/hongkong
Hotel LKF - 4 Star
33 Wyndham Street, Lan Kwai Fong, Centreal, Hong Kong
Tel.: (852) 3518-9688
Fax: (852) 3518-9699
Email: reservation@hotel.LFK.com.hk
Website: www.hotel-lkf.com.hk
Lanson Place Hotel - 4 Star
133 Leighton Road, Hong Kong
Tel.: (852) 3477-6888
Fax: (852) 3477-6999
Email: rsvn.lphk@lansonplace.com
Website: www.lansonplace.com
Novotel Century Hong Kong - 3 Star
238 Jaffe Road, Wan Chai, Hong Kong
Tel.: (852) 2598-8888
Fax: (852) 2598-8866
Email: business@century.com.hk
Website: www.novotel.hk
Regal Hong Kong Hotel - 4 Star
88 Yee Wo Street, CausewayBay, Hong Kong
Tel.: (852) 2890 6633
Fax: (852) 2881 0777
Email: rhk.info@RegalHotel.com
Website: www.regalhotel.com
Renaissance Harbour View Hotel Hong Kong - 4 Star
1 Harbour Road
Wanchai, Hong Kong
Tel.: (852) 2802-8888
Fax: (852) 2802-8833
Email: rhvhksal@hkstar.com
Website: www.renaissancehotel.com
The Garden View - YWCA - 3 Star
1 MacDonnell Road, Mid-levels, Hong Kong
Tel.: (852) 2877 3737
Fax: (852) 2845 6263
Email : ywgv@ywca.org.hk
Website: hotel.ywca.org.hk InterContinental Hong Kong - 5 Star
18 Salisbury Road, Kowloon,Hong Kong
Tel.: (852) 2721 1211
Fax: (852) 2739 4546
Email: hongkong@interconti.com
Website: hongkong-ic.intercontinental.com The Peninsula Hong Kong - 5 Star
Salisbury Road
Tsimshatsui, Kowloon
Tel.: (852) 2920-2888
Fax: (852) 2722-4170
Email: pen@peninsula.com
Website: www.peninsula.com
The Marco Polo Hong Kong Hotel - 5 Star
Harbour City, Kowloon
Tel.: (852) 2113-0088
Fax: (852) 2113-0011
Email: hongkong@marcopolohotels.com
Website: www.marcopolohotels.com
The Mira Hotel - 3 Star
118 Nathan Road, Tsimshatsui, Kowloon
Tel.: (852) 2368-1111
Fax: (852) 2369-1788
Email: sales@themirahotel.com
Website: www.themirahotel.com/en/home.html
Tuesday 8 January 2013
mobile handset sales drove earnings at Samsung Electronics to another record
The South Korean group's operating profit hit a record for the fifth straight quarter, rising 88 per cent from a year earlier to aboutWon8.8tn ($8.27bn), it saidin preliminary guidance published on Tuesday. Revenue rose 18 per cent to approximately Won56tn.
Although Samsung did notprovide a breakdown of the results, analysts believethe profit growth was driven by the handset business, which accounted for about two-thirds of earnings in the previous quarter.
Read more: Touch laptops are coming
Samsung has established itself as the leading smartphone maker by unit sales with a product range that stretches from premium to low-end devices, unlike rival Apple,which focuses on the top end of the market.
Apple won a hard-fought US legal battle when a California court in August ordered Samsung to pay$1bn for infringing patents related to the iPhone.
The legal tussle has continued, with Apple last month appealing against a US judge's refusal to ban some Samsung products from sale in the country. InSeptember, Apple unveiled the iPhone 5 amid feverish publicity, followed the next month by a miniature version of the iPad.
Read more: Six gadget trends at the CES
But analysts said Apple's introduction of competing devices failed to slow Samsung's momentum. Daniel Kim at Macquarie Securities estimated that Samsung sold about 15m units of its flagship Galaxy S3 smartphone in the period and about 8m of its Galaxy Note 2 miniature tablet.
Samsung phones using Microsoft's Windows Phone8 operating system will go on sale in the US early this year, as the company seeks to diversify beyond However, the rapid growthof the handset business threatens to leave Samsung"too dependent on a single profit source", Mr Kim added.
While Samsung is the world's leading producer of memory chips, smartphone application processors and televisions, these businesses combinedcontribute a fraction of the profits generated by the smartphone division.
The operating profit figure was ahead of analysts' consensus forecasts of Won8.5tn compiled by Bloomberg, but the shares fell 0.9 per cent in morning trading in Seoul.
Marcello Ahn, an analyst at Nomura, said investors were taking profits following a strong run that had seen the shares rise 19per cent since the beginning of September.
"For the share price to move by another jump from this level, we must see Samsung diversifying its [earnings base] into tablets and PCs," he said.
Another key factor in Samsung's performance this year will be the impact of its next flagship smartphone, expected to be released in the second quarter of the year.
Although Samsung did notprovide a breakdown of the results, analysts believethe profit growth was driven by the handset business, which accounted for about two-thirds of earnings in the previous quarter.
Read more: Touch laptops are coming
Samsung has established itself as the leading smartphone maker by unit sales with a product range that stretches from premium to low-end devices, unlike rival Apple,which focuses on the top end of the market.
Apple won a hard-fought US legal battle when a California court in August ordered Samsung to pay$1bn for infringing patents related to the iPhone.
The legal tussle has continued, with Apple last month appealing against a US judge's refusal to ban some Samsung products from sale in the country. InSeptember, Apple unveiled the iPhone 5 amid feverish publicity, followed the next month by a miniature version of the iPad.
Read more: Six gadget trends at the CES
But analysts said Apple's introduction of competing devices failed to slow Samsung's momentum. Daniel Kim at Macquarie Securities estimated that Samsung sold about 15m units of its flagship Galaxy S3 smartphone in the period and about 8m of its Galaxy Note 2 miniature tablet.
Samsung phones using Microsoft's Windows Phone8 operating system will go on sale in the US early this year, as the company seeks to diversify beyond However, the rapid growthof the handset business threatens to leave Samsung"too dependent on a single profit source", Mr Kim added.
While Samsung is the world's leading producer of memory chips, smartphone application processors and televisions, these businesses combinedcontribute a fraction of the profits generated by the smartphone division.
The operating profit figure was ahead of analysts' consensus forecasts of Won8.5tn compiled by Bloomberg, but the shares fell 0.9 per cent in morning trading in Seoul.
Marcello Ahn, an analyst at Nomura, said investors were taking profits following a strong run that had seen the shares rise 19per cent since the beginning of September.
"For the share price to move by another jump from this level, we must see Samsung diversifying its [earnings base] into tablets and PCs," he said.
Another key factor in Samsung's performance this year will be the impact of its next flagship smartphone, expected to be released in the second quarter of the year.
Thursday 3 January 2013
Ex-SAC fund manager pleads not guilty in insider case
NEW YORK, Jan 3 (Reuters) - Mathew Martoma, a former portfolio manager at hedge fund SAC Capital Management, pleaded notguilty to fraud charges stemming from a $276 million insider-trading case brought by federal prosecutors.
"I plead not guilty, your honor," said Martoma, speaking in a calm voice, to each of three counts that U.S. District Judge Paul Gardephe in Manhattan read to him on Thursday.
Martoma was indicted last month on charges of conspiracy to commit securities fraud and securities fraud.
He is accused of helping CR Intrinsic Investors, oneof the funds run by investment manager Steven A. Cohen's SAC Capital, make illegal trades in Elan Corp Plc and Wyeth, now part of Pfizer Inc. The trades were made in the summerof 2008 based on illicit tips prosecutors say Martoma received from a doctor, according to the indictment.
The case is the latest in the U.S. government's wide-ranging investigation of suspicious trading among hedge fund traders, portfolio managers and consultants.The probes have produced more than 50 convictions, with many of the defendants pleading guilty instead of going to trial.
When asked after the hearing if he was negotiating a plea agreement with prosecutors, Martoma's lawyer, Charles Stillman, said "the answer is no."
"Mathew Martoma is an innocent man," Stillman said.
At the hearing, Assistant U.S. Attorney Arlo Devlin-Brown said evidence in the case will include trading records, phone records and e-mails regarding the trades, and will include "voluminous discovery" from the hedge fund in the case.
Martoma is the seventh former employee of Cohen's to be charged or implicated in an insider-trading case while working at SAC Capital. Some former SAC Capital employees have been charged with insider trading after leaving the firm and while working at other funds.
Cohen has not been charged with wrongdoing.
The criminal complaint against Martoma is the firstto refer to Cohen, who appears in it as "Hedge Fund Owner" and"hedge fund manager A,"in a corresponding civil complaint the U.S. Securities and Exchange Commission filed against him, a source previously told Reuters.
"I plead not guilty, your honor," said Martoma, speaking in a calm voice, to each of three counts that U.S. District Judge Paul Gardephe in Manhattan read to him on Thursday.
Martoma was indicted last month on charges of conspiracy to commit securities fraud and securities fraud.
He is accused of helping CR Intrinsic Investors, oneof the funds run by investment manager Steven A. Cohen's SAC Capital, make illegal trades in Elan Corp Plc and Wyeth, now part of Pfizer Inc. The trades were made in the summerof 2008 based on illicit tips prosecutors say Martoma received from a doctor, according to the indictment.
The case is the latest in the U.S. government's wide-ranging investigation of suspicious trading among hedge fund traders, portfolio managers and consultants.The probes have produced more than 50 convictions, with many of the defendants pleading guilty instead of going to trial.
When asked after the hearing if he was negotiating a plea agreement with prosecutors, Martoma's lawyer, Charles Stillman, said "the answer is no."
"Mathew Martoma is an innocent man," Stillman said.
At the hearing, Assistant U.S. Attorney Arlo Devlin-Brown said evidence in the case will include trading records, phone records and e-mails regarding the trades, and will include "voluminous discovery" from the hedge fund in the case.
Martoma is the seventh former employee of Cohen's to be charged or implicated in an insider-trading case while working at SAC Capital. Some former SAC Capital employees have been charged with insider trading after leaving the firm and while working at other funds.
Cohen has not been charged with wrongdoing.
The criminal complaint against Martoma is the firstto refer to Cohen, who appears in it as "Hedge Fund Owner" and"hedge fund manager A,"in a corresponding civil complaint the U.S. Securities and Exchange Commission filed against him, a source previously told Reuters.
Wednesday 2 January 2013
Avis buying Zipcar in deal worth nearly$500M
Avis is buying Zipcar for$491.2 million, expanding its offerings from traditional car rentals to car sharing services.
Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle quickly for short trips. Zipcar, which was founded in 2000, has more than 760,000 members. It went public in 2011 and posted net income of $850,000 in the first nine months of this year.
"By combining with Zipcar, we will significantly increaseour growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs," said Avis Chairman and CEO Ronald Nelson.
Bringing the Avis fleet into play will help Zipcar meet high demand on weekends,Avis said, when most peoplemake a run to the grocery store or run other errands. It will also help Avis compete with Hertz Global Holdings Inc., which has its own car sharing service, Hertz on Demand.
Both Zipcar and Hertz on Demand park cars throughout cities and college campuses, which allow renters to avoid waiting in lines at traditionalcar rental counters. Some areas provide reserved parking for the cars and vehicles can be located online or through the companies' smart phone applications.
The car sharing companies also pay for fuel, a cost not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and Hertz on Demand are generally moreexpensive for rentals longerthan 24 hours.
Avis Budget Group Inc. willpay $12.25 per share, whichis a 49 percent premium to Zipcar's closing price on Friday. The companies put the total value of the deal atapproximately $500 million.
Zipcar Inc. has about 40.1 million outstanding shares, according to FactSet. It will become an Avis subsidiary and have headquarters in Boston.
Its shares jumped almost more than 47 percent to$12.19 in premarket tradingMonday.
The boards of both companies unanimously approved the buyout. If Zipcar shareholders approvethe deal, it's expected to close in the spring.
Avis anticipates $50 million to $70 million in annual savings. The Parsippany, N.J.-based company also expects the acquisition will add to its adjusted earningsper share in the second year after it is complete.
Avis said that it expects certain members of Zipcar management, including Chairman and CEO Scott Griffith and President and Chief Operating Officer Mark Norman, to help run its day-to-day operations.
Avis also maintained its 2012 adjusted earnings forecast Monday of about$2.35 to $2.45 per share on revenue of approximately$7.3 billion.
Analysts predict earnings of$2.42 per share on revenueof $7.3 billion.
Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle quickly for short trips. Zipcar, which was founded in 2000, has more than 760,000 members. It went public in 2011 and posted net income of $850,000 in the first nine months of this year.
"By combining with Zipcar, we will significantly increaseour growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs," said Avis Chairman and CEO Ronald Nelson.
Bringing the Avis fleet into play will help Zipcar meet high demand on weekends,Avis said, when most peoplemake a run to the grocery store or run other errands. It will also help Avis compete with Hertz Global Holdings Inc., which has its own car sharing service, Hertz on Demand.
Both Zipcar and Hertz on Demand park cars throughout cities and college campuses, which allow renters to avoid waiting in lines at traditionalcar rental counters. Some areas provide reserved parking for the cars and vehicles can be located online or through the companies' smart phone applications.
The car sharing companies also pay for fuel, a cost not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and Hertz on Demand are generally moreexpensive for rentals longerthan 24 hours.
Avis Budget Group Inc. willpay $12.25 per share, whichis a 49 percent premium to Zipcar's closing price on Friday. The companies put the total value of the deal atapproximately $500 million.
Zipcar Inc. has about 40.1 million outstanding shares, according to FactSet. It will become an Avis subsidiary and have headquarters in Boston.
Its shares jumped almost more than 47 percent to$12.19 in premarket tradingMonday.
The boards of both companies unanimously approved the buyout. If Zipcar shareholders approvethe deal, it's expected to close in the spring.
Avis anticipates $50 million to $70 million in annual savings. The Parsippany, N.J.-based company also expects the acquisition will add to its adjusted earningsper share in the second year after it is complete.
Avis said that it expects certain members of Zipcar management, including Chairman and CEO Scott Griffith and President and Chief Operating Officer Mark Norman, to help run its day-to-day operations.
Avis also maintained its 2012 adjusted earnings forecast Monday of about$2.35 to $2.45 per share on revenue of approximately$7.3 billion.
Analysts predict earnings of$2.42 per share on revenueof $7.3 billion.
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