BOILER ROOM features a host of live music, and performance artists brought to you by Asheville locals and out-of town entertainers.
Located in the GROVE HOUSE Entertainment Complex
11 Grove Street, Downtown Asheville, NC
(828) 505-1612 www.thegrovehouse.com
Welcome to the
BOILER ROOM
Upcoming Shows
Thursday, May 26th
ROCK with
Akamai Drone, The Dark Shave and Tonology
Doors 10pm
Cover: $5 (18 & up) or $7 (18 to 20)
INCLUDES FREE ADDMISSION INTO
SCANDALS NIGHTCLUB
Friday, May 27th
ROCK with
The Rose Familiar and Peace Jones
Doors 9pm, Music 10pm
Cover: $5 (21 & up) $7 (18 to 20)
Saturday, May 28th
ROCK with
The Great Liars and 100 Yorktown
Doors 9pm, Music 10pm
Cover: $7 (18 and up)
Friday, June 3rd
ROCK with
Monkey in Podship
and E/R Airplane
Doors 9pm, Music 10pm
Cover: $5 (21 & up) $7 (18 to 20)
Saturday, June 4th
ROCK/FUNK with
Groove Stain and Reid Attayway
D oors 9pm, Music 10pm
Cover: $7 (18 and up)
Monday, June 13, 2011
Fisher Capital Management Latest News: Korean financial watchdog probes data breach at Hyundai Capital
http://www.infosecurity-us.com/view/17260/korean-financial-watchdog-probes-data-breach-at-hyundai-capital/
11 April 2011
South Korea’s Financial Supervisory Service (FSS) has launched a probe into a data breach at Hyundai Capital that affected 420,000 of its customers.
The FSS has sent investigators to Hyundai Capital, the consumer financing arm of auto maker Hyundai Motor Group and GE Capital, after the company admitted that hackers gained access to its customer database and stole personal information and passwords of its customers, theKorea Herald reported.
The data breach occurred over a two-month period. The company was contacted by one of the hackers who asked for money in return for not releasing the customers’ information. However, the data breach was only made public after the company contacted the police to investigate the blackmail.
Hyundai Capital said its internal investigation revealed names, residential registration numbers, mobile phone numbers, and email addresses, as well as passwords to loan services were obtained by the hacker.
Police said the hackers gained access to the database using servers located in the Philippines and Brazil.
The FSS is considering punitive actions against the company if violations of the country’s financial information security laws are found. The agency also plans to form a task force in coordination with other agencies to investigate information security practices throughout the financial sector, the newspaper said.
11 April 2011
South Korea’s Financial Supervisory Service (FSS) has launched a probe into a data breach at Hyundai Capital that affected 420,000 of its customers.
The FSS has sent investigators to Hyundai Capital, the consumer financing arm of auto maker Hyundai Motor Group and GE Capital, after the company admitted that hackers gained access to its customer database and stole personal information and passwords of its customers, theKorea Herald reported.
The data breach occurred over a two-month period. The company was contacted by one of the hackers who asked for money in return for not releasing the customers’ information. However, the data breach was only made public after the company contacted the police to investigate the blackmail.
Hyundai Capital said its internal investigation revealed names, residential registration numbers, mobile phone numbers, and email addresses, as well as passwords to loan services were obtained by the hacker.
Police said the hackers gained access to the database using servers located in the Philippines and Brazil.
The FSS is considering punitive actions against the company if violations of the country’s financial information security laws are found. The agency also plans to form a task force in coordination with other agencies to investigate information security practices throughout the financial sector, the newspaper said.
Fisher Capital Management Corporate News: Apple’s iPad Supremacy Challenged by Google, Microsoft
http://www.financialfeed.net/apple%E2%80%99s-ipad-supremacy-challenged-by-google-microsoft/853288/
Posted by Nick Maffeo on May 30, 2011 in Business, Technology
Google Inc and Microsoft Corp will challenge the supremacy of Apple’s iPad as new tablet models are announced in Taipe’s Computex trade show this week. Google’s Android OS and Microsoft’s new Windows platform will be observed by investors and analyze if they are any match to Apple’s iPad. KGI Securities Co’s analyst Angela Hsiang said investors will want to know which tablet is better in performance and price and when the non-iPad camp will get going. She said, previously, people couldn’t actually see the products but at Computex, they can touch and use the products.
Microsoft will be revealing a new platform which will be carefully analyzed by investors to see if it can stand up against Apple.
In 2007-2008 Computex, Acer Inc and Asustek Computer Inc stirred the market with their low-cost netbooks. This week, they will showcase features of Google’s Android. Executives from Google and Microsoft will be at the event to give updates. Qualcomm Inc and Nvidia Corp, users of chips and chip designs from Intel Corp and ARM Holdings Plc will also have their products compete. In a May 26 report, analyst Toni Sacconaghi of Sanford C. Bernstein & Co, said by 2015 tablets shipments worldwide will reach 215 million units. PC sales will be reduced by 15% by tablets and annual sales between 2010 and 2015 will be less 2%. According to iSuppli Corp, new competitors will cut Apple’s market share by 50% in 2012.
A sample of Microsoft’s tablet OS based on ARM chips will be featured, said 3 insiders. Microsoft’s current platform, Windows 7, uses Samsung and Motorola tablets which are not ARM chip compatible. This month, Microsoft CEO Steve Ballmer said machines based on a new Microsoft OS, dubbed Windows 8, are due for release next year but retracted the “misstatement” later. Hsiang said future’s big development is ARM plus Microsoft, and if that’s a success then it’ll be big for the market. Windows 8 will also impact the market because many people can’t get used to Android while they’re familiar with Windows, added Hsiang.
ARM president Tudor Brown said ARM technology which supports the iPad and iPhone, looks at getting 50% of tablets, notebooks and netbook chips market share by 2015. They expect a climb of 15% by the end of 2011. The strong early lead in tablets and the smartphone market of Google supported its applications store expansion. That success, said IDC analyst Helen Chiang, balances Google’s software development immaturity. She said most vendors still worry about quality and stability and choose Google because its cost is lower as the operating system is free, while Windows adds to the price.
Posted by Nick Maffeo on May 30, 2011 in Business, Technology
Google Inc and Microsoft Corp will challenge the supremacy of Apple’s iPad as new tablet models are announced in Taipe’s Computex trade show this week. Google’s Android OS and Microsoft’s new Windows platform will be observed by investors and analyze if they are any match to Apple’s iPad. KGI Securities Co’s analyst Angela Hsiang said investors will want to know which tablet is better in performance and price and when the non-iPad camp will get going. She said, previously, people couldn’t actually see the products but at Computex, they can touch and use the products.
Microsoft will be revealing a new platform which will be carefully analyzed by investors to see if it can stand up against Apple.
In 2007-2008 Computex, Acer Inc and Asustek Computer Inc stirred the market with their low-cost netbooks. This week, they will showcase features of Google’s Android. Executives from Google and Microsoft will be at the event to give updates. Qualcomm Inc and Nvidia Corp, users of chips and chip designs from Intel Corp and ARM Holdings Plc will also have their products compete. In a May 26 report, analyst Toni Sacconaghi of Sanford C. Bernstein & Co, said by 2015 tablets shipments worldwide will reach 215 million units. PC sales will be reduced by 15% by tablets and annual sales between 2010 and 2015 will be less 2%. According to iSuppli Corp, new competitors will cut Apple’s market share by 50% in 2012.
A sample of Microsoft’s tablet OS based on ARM chips will be featured, said 3 insiders. Microsoft’s current platform, Windows 7, uses Samsung and Motorola tablets which are not ARM chip compatible. This month, Microsoft CEO Steve Ballmer said machines based on a new Microsoft OS, dubbed Windows 8, are due for release next year but retracted the “misstatement” later. Hsiang said future’s big development is ARM plus Microsoft, and if that’s a success then it’ll be big for the market. Windows 8 will also impact the market because many people can’t get used to Android while they’re familiar with Windows, added Hsiang.
ARM president Tudor Brown said ARM technology which supports the iPad and iPhone, looks at getting 50% of tablets, notebooks and netbook chips market share by 2015. They expect a climb of 15% by the end of 2011. The strong early lead in tablets and the smartphone market of Google supported its applications store expansion. That success, said IDC analyst Helen Chiang, balances Google’s software development immaturity. She said most vendors still worry about quality and stability and choose Google because its cost is lower as the operating system is free, while Windows adds to the price.
Fisher Capital Management Investment Solutions News Updates
Fisher Capital Management Investment Solutions: Final minutes of Harry Potter will be stretched into 7 films!
0
Posted on : 08-06-2011 | By : Fisher Capital Management Investment News | In : business, finance, investing, investment, latest news
Tags: fisher capital management, fisher capital management fraud updates and tips, fisher capital management investment, fisher capital management investment scam news and prevention, fisher capital management investment solutions news update
3 Votes
Warner Bros. announced last week that it will recut the last four minutes of “The Deathly Hollows: Part 2″ and stretch it into seven films so fans can enjoy the Harry Potter franchise for another decade.
Apparently, the producers are more than willing to cash in on the high popularity of the franchise.
From what I heard, the upcoming seven movies will feature a more ‘detailed’ depiction of the last hours in the story of Harry Potter and his friends (or maybe that’s just a fancy term for making the scenes proceed in slow motion all throughout?). Idk, I’ve always suspected maybe they’ll just use some ‘really complex camera style’ or whatnot as an excuse to present the films in a manner that imitates all motions done underwater (i.e. very slow motion).
This sounds ridiculous when I first heard it but, hey, it’s Hollywood, anything’s possible. So I think HP fans are going to have a fit when they hear about this. Either because they are wildly excited, or because they are terribly annoyed business-people are treating the wizard story as a cash cow.
Now, I personally don’t care if they’re extending the series or keeping true to its finale. Either way, it’s cool with me. But seeing the fans being divided ’cause of this is too amusing to pass up. Don’t you just love hearing passionate debates over fictional things. Classic.
I was just wondering how they are going to title each movie sequel…
0
Posted on : 08-06-2011 | By : Fisher Capital Management Investment News | In : business, finance, investing, investment, latest news
Tags: fisher capital management, fisher capital management fraud updates and tips, fisher capital management investment, fisher capital management investment scam news and prevention, fisher capital management investment solutions news update
3 Votes
Warner Bros. announced last week that it will recut the last four minutes of “The Deathly Hollows: Part 2″ and stretch it into seven films so fans can enjoy the Harry Potter franchise for another decade.
Apparently, the producers are more than willing to cash in on the high popularity of the franchise.
From what I heard, the upcoming seven movies will feature a more ‘detailed’ depiction of the last hours in the story of Harry Potter and his friends (or maybe that’s just a fancy term for making the scenes proceed in slow motion all throughout?). Idk, I’ve always suspected maybe they’ll just use some ‘really complex camera style’ or whatnot as an excuse to present the films in a manner that imitates all motions done underwater (i.e. very slow motion).
This sounds ridiculous when I first heard it but, hey, it’s Hollywood, anything’s possible. So I think HP fans are going to have a fit when they hear about this. Either because they are wildly excited, or because they are terribly annoyed business-people are treating the wizard story as a cash cow.
Now, I personally don’t care if they’re extending the series or keeping true to its finale. Either way, it’s cool with me. But seeing the fans being divided ’cause of this is too amusing to pass up. Don’t you just love hearing passionate debates over fictional things. Classic.
I was just wondering how they are going to title each movie sequel…
Wednesday, May 18, 2011
Fisher Capital Management Investment Solutions: Trusteer: User education can’t protect against social engineering
http://www.thetechherald.com/article.php/201115/7066/Trusteer-User-education-can-t-protect-against-social-engineering
by Steve Ragan – Apr 15 2011, 03:40
An experiment by security firm Trusteer has shown that even the most educated user can be fooled by a Phishing attack. By using 100 well-informed participants on social/business portal LinkedIn, Trusteer sent out messages similar to the ones site users would see on a regular basis. Interestingly, almost 70 percent of the test group fell for the con.
Phishing attacks and other scams are constantly explained and cautioned against, and most security professionals can explain what to look for and how to avoid falling victim to these cons. Yet, there is always a victim. No matter how good the education, you can’t reach everyone… and, more worringly, some will simply ignore the advice.
Trusteer, in wanting to test the notion that education isn’t the total solution for avoiding Phishing and other scams (as well as looking to show how easy it is to fall victim) asked 100 people to take part in its experiment. All of them agreed. However, while they knew they would be part of a security test, none of them knew when the test would take place.
Trusteer created a new identity on the LinkedIn site and then used some basic data-mining techniques on the supposedly educated participants, its goal being to collect information on their connections along with any other personal information presented via the site.
Mickey Boodaei, Trusteer’s CEO explains: “We picked a population of 100 users – these are people we know – friends and family and estimated to be fairly educated about security…”
“Since LinkedIn sends an alert when one of your connections has a new job, we decided to use this update method to create a fraudulent email. For each one of our targets we crafted a fictitious new job alert,” he added. “We chose one of their LinkedIn connections, and announced that this person was now working for a company that directly competes with our victim’s company.”
The message came with a large linked button with which to view the friend’s new title, just as LinkedIn does on its regular communications. Included in the email was a photo of the friend alongside their name, again much as it appears on the proper site. By choosing to click the button, users were taken, not to LinkedIn, but to a dummy attack site.
“The website we used was innocuous, but it was a place holder for a potentially malicious website that places malware on the victim’s computer. We released this email to all 100 subjects on the same day – a Tuesday morning – and monitored who clicked the link and reached our landing page,” Boodaei said.
Within the first 24 hours, 41 participants had fallen for the scam. Within seven days, 68 people had clicked the button. If this had been a real attack, those numbers would have marked a high return on a criminal’s investment. In all, Trusteer spent about 17 hours on the study.
As for the other 32 people, Boodaei explained that, when approached: “Sixteen said they haven’t seen this email (it probably went into their spam folder). Seven said they usually don’t read LinkedIn updates. Nine said that the update was not interesting enough for them to click the link.”
The one thing we disagree with is the company’s statement issued at the end of the test, which says that the “solution to this problem must be based on technology and probably using more than one method.”
Technology, while helpful, will not prevent the problem of people falling prey to Phishing scams. Perhaps a better recommendation would have been to blend technology with basic education and awareness. Phishing scams work because they are able to bypass technology and take advantage of human nature.
As mentioned in the Trusteer write-up, the tools that organizations use to train their customers on Phishing scams are “not effective enough” to reach all of them, or convey the message in a way the majority will understand. Mixing education and technology might help, but technology alone will do no better than that which exists today.
The test performed by Trusteer is an interesting one. It would be nice to see a similar test where the participants are told it is a Phishing attack beforehand. Likewise, it would be interesting to see the test done to scale, where several hundred if not thousands of participants are targeted.
It’s frustrating to see people fall for basic Phishing scams, and it’s painful when major companies like RSA are victimized by them. However, there is no single answer when it comes to protecting against or preventing tricks against the human mind. The person who finally solves that riddle will be able to demand any ransom they want for the answer.
by Steve Ragan – Apr 15 2011, 03:40
An experiment by security firm Trusteer has shown that even the most educated user can be fooled by a Phishing attack. By using 100 well-informed participants on social/business portal LinkedIn, Trusteer sent out messages similar to the ones site users would see on a regular basis. Interestingly, almost 70 percent of the test group fell for the con.
Phishing attacks and other scams are constantly explained and cautioned against, and most security professionals can explain what to look for and how to avoid falling victim to these cons. Yet, there is always a victim. No matter how good the education, you can’t reach everyone… and, more worringly, some will simply ignore the advice.
Trusteer, in wanting to test the notion that education isn’t the total solution for avoiding Phishing and other scams (as well as looking to show how easy it is to fall victim) asked 100 people to take part in its experiment. All of them agreed. However, while they knew they would be part of a security test, none of them knew when the test would take place.
Trusteer created a new identity on the LinkedIn site and then used some basic data-mining techniques on the supposedly educated participants, its goal being to collect information on their connections along with any other personal information presented via the site.
Mickey Boodaei, Trusteer’s CEO explains: “We picked a population of 100 users – these are people we know – friends and family and estimated to be fairly educated about security…”
“Since LinkedIn sends an alert when one of your connections has a new job, we decided to use this update method to create a fraudulent email. For each one of our targets we crafted a fictitious new job alert,” he added. “We chose one of their LinkedIn connections, and announced that this person was now working for a company that directly competes with our victim’s company.”
The message came with a large linked button with which to view the friend’s new title, just as LinkedIn does on its regular communications. Included in the email was a photo of the friend alongside their name, again much as it appears on the proper site. By choosing to click the button, users were taken, not to LinkedIn, but to a dummy attack site.
“The website we used was innocuous, but it was a place holder for a potentially malicious website that places malware on the victim’s computer. We released this email to all 100 subjects on the same day – a Tuesday morning – and monitored who clicked the link and reached our landing page,” Boodaei said.
Within the first 24 hours, 41 participants had fallen for the scam. Within seven days, 68 people had clicked the button. If this had been a real attack, those numbers would have marked a high return on a criminal’s investment. In all, Trusteer spent about 17 hours on the study.
As for the other 32 people, Boodaei explained that, when approached: “Sixteen said they haven’t seen this email (it probably went into their spam folder). Seven said they usually don’t read LinkedIn updates. Nine said that the update was not interesting enough for them to click the link.”
The one thing we disagree with is the company’s statement issued at the end of the test, which says that the “solution to this problem must be based on technology and probably using more than one method.”
Technology, while helpful, will not prevent the problem of people falling prey to Phishing scams. Perhaps a better recommendation would have been to blend technology with basic education and awareness. Phishing scams work because they are able to bypass technology and take advantage of human nature.
As mentioned in the Trusteer write-up, the tools that organizations use to train their customers on Phishing scams are “not effective enough” to reach all of them, or convey the message in a way the majority will understand. Mixing education and technology might help, but technology alone will do no better than that which exists today.
The test performed by Trusteer is an interesting one. It would be nice to see a similar test where the participants are told it is a Phishing attack beforehand. Likewise, it would be interesting to see the test done to scale, where several hundred if not thousands of participants are targeted.
It’s frustrating to see people fall for basic Phishing scams, and it’s painful when major companies like RSA are victimized by them. However, there is no single answer when it comes to protecting against or preventing tricks against the human mind. The person who finally solves that riddle will be able to demand any ransom they want for the answer.
Fisher Capital Management Corporate News: Sprint Nextel Corporation Launches New Mobile Solutions for Green Life Enthusiasts – NYSE:S
http://www.usamarketnews.com/major-business-news/1641/sprint-nextel-corporation-launches-new-mobile-solutions-for-green-life-enthusiasts-nyses.html
Posted by: SuzyCrosno on April 17th,2011
Sprint Nextel Corporation NYSE:S introduces a new mobile solution built just for those who are dedicated environmentalists or just interested in finding some simple yet meaningful ways to begin living a greener life. Company yesterday declared its newest Sprint ID pack – the Green ID pack – which offers an unmatched eco-friendly Android™ experience, delivered right to one’s fingertips, on select Sprint devices.
With mobile content from eco-friendly favorites like Earth911.com, TreeHugger.com, the Green ID pack automatically loads apps, Green America and the National Audubon Society, widgets and shortcuts tailor-made for users who want to live a more environmentally sustainable life and help others to do the same.
Sprint Nextel Corporation is basically a Wireless Communications industry company that holds a portfolio of about 40,000 employees. Company’s stock price is increasing continuously for the most recent quarter as Sprint’s three consecutive months’ share growth is +8.10% with its relative strength index of 71. However on semiannual basis the last six consecutive months growth recorded +4.80% with relative strength index of 63.
Company’s sales have increased 2.51% during last five consecutive years and resulted $32.56 billion for last consecutive twelve months. The company’s growth of its sales in recent quarter vs. year ago quarter recorded 5.50% which is chasing the Industry benchmark of 6.60% and below from Standard and Poor’s benchmark of 11.70%.
Sprint Nextel Corporation NYSE:S on April 15, 2011 decreased $0.15 and settled to the closing price of $4.81. The overall volume in the last trading session was 63.82 million shares. Its fifty two week range was $3.70-$5.31. The total market capitalization remained $14.38 billion.
Sprint Nextel’s current stock price is moving above its 52 week low by 30.00% and moving below from 52 week high price by 9.42%. SPRINT last month stock price volatility remained 3.58%. In its share capital SPRINT has 2.99 billion outstanding shares while company’s float is the same at 2.99 billion shares. Ownership of company is 86.82% institutional while insiders owning 0.22%.
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 49.9 million customers at the end of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone.
Posted by: SuzyCrosno on April 17th,2011
Sprint Nextel Corporation NYSE:S introduces a new mobile solution built just for those who are dedicated environmentalists or just interested in finding some simple yet meaningful ways to begin living a greener life. Company yesterday declared its newest Sprint ID pack – the Green ID pack – which offers an unmatched eco-friendly Android™ experience, delivered right to one’s fingertips, on select Sprint devices.
With mobile content from eco-friendly favorites like Earth911.com, TreeHugger.com, the Green ID pack automatically loads apps, Green America and the National Audubon Society, widgets and shortcuts tailor-made for users who want to live a more environmentally sustainable life and help others to do the same.
Sprint Nextel Corporation is basically a Wireless Communications industry company that holds a portfolio of about 40,000 employees. Company’s stock price is increasing continuously for the most recent quarter as Sprint’s three consecutive months’ share growth is +8.10% with its relative strength index of 71. However on semiannual basis the last six consecutive months growth recorded +4.80% with relative strength index of 63.
Company’s sales have increased 2.51% during last five consecutive years and resulted $32.56 billion for last consecutive twelve months. The company’s growth of its sales in recent quarter vs. year ago quarter recorded 5.50% which is chasing the Industry benchmark of 6.60% and below from Standard and Poor’s benchmark of 11.70%.
Sprint Nextel Corporation NYSE:S on April 15, 2011 decreased $0.15 and settled to the closing price of $4.81. The overall volume in the last trading session was 63.82 million shares. Its fifty two week range was $3.70-$5.31. The total market capitalization remained $14.38 billion.
Sprint Nextel’s current stock price is moving above its 52 week low by 30.00% and moving below from 52 week high price by 9.42%. SPRINT last month stock price volatility remained 3.58%. In its share capital SPRINT has 2.99 billion outstanding shares while company’s float is the same at 2.99 billion shares. Ownership of company is 86.82% institutional while insiders owning 0.22%.
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 49.9 million customers at the end of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone.
Fisher Capital Management Investment Solutions: Bin Laden’s Death to Boost Pakistan Economy, Stocks:Strategist
Published: Tuesday, 3 May 2011 | 3:29 AM ET
By: Geraldine Tan
CNBC News Assistant
The killing of Osama bin Laden is a positive event for Pakistan’s economy and stock market, despite doubts about whether the country’s military was complicit in hiding the Al Qaeda leader, according to a strategist.
Sajjad Hussain | Getty Images
Mark Matthews, equity strategist at Macquarie, said the positive commentsfrom top U.S. officials including Secretary of State Hillary Clinton on Pakistan’s role against terrorism would eventually lead to the release of much-delayed financial aid for the country. That, in turn, would help the government lower its fiscal deficit and boost the economy.
“For about 5-6 months now, the American’s and coalition money have not been released into Pakistan. And Pakistan has a very wide fiscal deficit. It’s 6.1 percent of GDP and it is the major issue overhanging their stock market,” Matthews added.
The aid package worth $7.5 billion over 5 years has been promoted by Democrat Senator John Kerry and Republican Senator Dick Lugar. But it’s been in limbo because of U.S. concerns about corruption in Pakistan.
Once, that’s resolved, Matthews expects the stock market to benefit. “There are lots of gems in that country. There are probably more gems there, stock-wise, than any other country in Asia,” Matthews told CNBC’s Bernie Lo.
The Karachi stock index rallied late last year along with other emerging markets, but so far this year it has dropped 6 percent because of rising fuel prices and a growing budget deficit. According to Macquarie, Karachi’s stock index not only offers value, but also many well-run companies.
For investors looking for stocks with volume, Matthews suggests looking atPakistan Oilfields [PKOL.KA 326.80 -0.75 (-0.23%) ]. He likes this company as it has a daily turnover of $5 million and trades on about 5x earnings, with a 9.5 percent dividend yield.
And for investors who can stomach the illiquidity in the small-cap space, he recommends Askari Bank [ASBK.KA 11.50 -0.25 (-2.13%) ].
“If you annualize that (the bank’s first-quarter results), that is on 4x PE and their asset quality has held up remarkably well, NPLs are very low and its at a 40 percent discount to book,” noted Matthews.
But he also says investors need to be cautious, and he said he was recommending taking only small positions. (Watch full interview here.)
By: Geraldine Tan
CNBC News Assistant
The killing of Osama bin Laden is a positive event for Pakistan’s economy and stock market, despite doubts about whether the country’s military was complicit in hiding the Al Qaeda leader, according to a strategist.
Sajjad Hussain | Getty Images
Mark Matthews, equity strategist at Macquarie, said the positive commentsfrom top U.S. officials including Secretary of State Hillary Clinton on Pakistan’s role against terrorism would eventually lead to the release of much-delayed financial aid for the country. That, in turn, would help the government lower its fiscal deficit and boost the economy.
“For about 5-6 months now, the American’s and coalition money have not been released into Pakistan. And Pakistan has a very wide fiscal deficit. It’s 6.1 percent of GDP and it is the major issue overhanging their stock market,” Matthews added.
The aid package worth $7.5 billion over 5 years has been promoted by Democrat Senator John Kerry and Republican Senator Dick Lugar. But it’s been in limbo because of U.S. concerns about corruption in Pakistan.
Once, that’s resolved, Matthews expects the stock market to benefit. “There are lots of gems in that country. There are probably more gems there, stock-wise, than any other country in Asia,” Matthews told CNBC’s Bernie Lo.
The Karachi stock index rallied late last year along with other emerging markets, but so far this year it has dropped 6 percent because of rising fuel prices and a growing budget deficit. According to Macquarie, Karachi’s stock index not only offers value, but also many well-run companies.
For investors looking for stocks with volume, Matthews suggests looking atPakistan Oilfields [PKOL.KA 326.80 -0.75 (-0.23%) ]. He likes this company as it has a daily turnover of $5 million and trades on about 5x earnings, with a 9.5 percent dividend yield.
And for investors who can stomach the illiquidity in the small-cap space, he recommends Askari Bank [ASBK.KA 11.50 -0.25 (-2.13%) ].
“If you annualize that (the bank’s first-quarter results), that is on 4x PE and their asset quality has held up remarkably well, NPLs are very low and its at a 40 percent discount to book,” noted Matthews.
But he also says investors need to be cautious, and he said he was recommending taking only small positions. (Watch full interview here.)
Fisher Capital Management Corporate News: FSA guidelines will signal end of staff retention bonuses
http://www.love2reward.co.uk/rewards/feeds/fsa-guidelines-will-signal-end-of-staff-retention-bonuses.jsp
Tuesday, 3 May 2011
The financial services sector will no longer be able to offer staff retention bonuses, as a result of new payment guidelines from the Financial Services Authority (FSA).New rules put forth by the FSA attempt to align pay and other staff rewards with jeopardy, so as to avoid a situation where employees are given lucrative incentives to engage in potentially risky activities.
Jon Terry, remuneration partner for PwC, explained that the FSA has effectively “introduced the world’s toughest pay rules to the UK financial services industry” and warned that firms must take steps to comply before the June 30th deadline.
He added that while some measures will be welcomed by workers, but bonus restrictions are likely to be less popular.
“The latest announcements will spell the end of guarantees for existing employees, which had been an important tool for firms to retain talent,” he explained.
Last week, expert Chris Welford told the magazine’s readers that more freedom in the workplace can boost staff retention, which could be an alternative strategy for firms.
Tuesday, 3 May 2011
The financial services sector will no longer be able to offer staff retention bonuses, as a result of new payment guidelines from the Financial Services Authority (FSA).New rules put forth by the FSA attempt to align pay and other staff rewards with jeopardy, so as to avoid a situation where employees are given lucrative incentives to engage in potentially risky activities.
Jon Terry, remuneration partner for PwC, explained that the FSA has effectively “introduced the world’s toughest pay rules to the UK financial services industry” and warned that firms must take steps to comply before the June 30th deadline.
He added that while some measures will be welcomed by workers, but bonus restrictions are likely to be less popular.
“The latest announcements will spell the end of guarantees for existing employees, which had been an important tool for firms to retain talent,” he explained.
Last week, expert Chris Welford told the magazine’s readers that more freedom in the workplace can boost staff retention, which could be an alternative strategy for firms.
Wednesday, May 11, 2011
Fisher Capital Management Investment Solutions: Farm Service Agency offers loan options
http://beta.bryancountynews.net/section/13/article/12677/
POSTED: April 25, 2011 12:11 p.m.
The U.S. Department of Agriculture has several loans available through its Farm Service Agency for farmers and others, including beginning and limited resource loans, direct and guaranteed loans and rural youth loans.
One program assists beginning farmers and/or members of socially disadvantaged groups to finance agricultural enterprises. Under these designated farm-loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans. FSA defines a beginning farmer as a person who:
• Has operated a farm for 10 years or less.
• Will materially and substantially participate in the operation of the farm.
• Agrees to participate in a loan assessment, borrower training and financial-management program sponsored by FSA.
• Does not own a farm in excess of 30 percent of the county’s median size.
Each member of an entity must meet the eligibility requirements. Loan approval is not guaranteed.
Direct and guaranteed loans
The Farm Service Agency provides family farmers with loans to meet their farm-credit needs. For farmers who are having trouble getting the credit they need for their farms or who regularly borrow from FSA, direct and guaranteed loans currently are available.
Farm-ownership loans or farm-operating loans may be obtained as direct loans for a maximum of $300,000. Guaranteed loans can reach a maximum indebtedness of $1,119,000. Producers are encouraged to apply early so that a loan can be processed and funded in a timely manner.
Rural youth loans
The Farm Service Agency makes loans to rural youths to establish and operate income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. Projects must be planned and operated with the help of the organization’s advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $5,000.
To be eligible for a youth loan, a person must:
• Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien.
• Be 10-20 years old.
• Comply with FSA’s general eligibility requirements.
• Reside in a rural area, city or town with a population of 50,000 or fewer people.
• Be unable to get a loan from other sources.
• Conduct a modest income-producing project in a supervised program of work as outlined above.
• Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the project and the loan, along with providing adequate supervision.
The FSA Farm Loan Team located in Statesboro processes loans for Bulloch, Candler, Effingham, Bryan, Chatham, Emanuel, Evans, Jenkins, Screven, Tattnall and Toombs counties. The team can be contacted by calling (912) 871-2610, ext. 5.
For loan applications and more information, visit your local USDA Service Center or go towww.fsa.usda.gov.
POSTED: April 25, 2011 12:11 p.m.
The U.S. Department of Agriculture has several loans available through its Farm Service Agency for farmers and others, including beginning and limited resource loans, direct and guaranteed loans and rural youth loans.
One program assists beginning farmers and/or members of socially disadvantaged groups to finance agricultural enterprises. Under these designated farm-loan programs, FSA can provide financing to eligible applicants through either direct or guaranteed loans. FSA defines a beginning farmer as a person who:
• Has operated a farm for 10 years or less.
• Will materially and substantially participate in the operation of the farm.
• Agrees to participate in a loan assessment, borrower training and financial-management program sponsored by FSA.
• Does not own a farm in excess of 30 percent of the county’s median size.
Each member of an entity must meet the eligibility requirements. Loan approval is not guaranteed.
Direct and guaranteed loans
The Farm Service Agency provides family farmers with loans to meet their farm-credit needs. For farmers who are having trouble getting the credit they need for their farms or who regularly borrow from FSA, direct and guaranteed loans currently are available.
Farm-ownership loans or farm-operating loans may be obtained as direct loans for a maximum of $300,000. Guaranteed loans can reach a maximum indebtedness of $1,119,000. Producers are encouraged to apply early so that a loan can be processed and funded in a timely manner.
Rural youth loans
The Farm Service Agency makes loans to rural youths to establish and operate income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. Projects must be planned and operated with the help of the organization’s advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $5,000.
To be eligible for a youth loan, a person must:
• Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands) or a legal resident alien.
• Be 10-20 years old.
• Comply with FSA’s general eligibility requirements.
• Reside in a rural area, city or town with a population of 50,000 or fewer people.
• Be unable to get a loan from other sources.
• Conduct a modest income-producing project in a supervised program of work as outlined above.
• Demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the project and the loan, along with providing adequate supervision.
The FSA Farm Loan Team located in Statesboro processes loans for Bulloch, Candler, Effingham, Bryan, Chatham, Emanuel, Evans, Jenkins, Screven, Tattnall and Toombs counties. The team can be contacted by calling (912) 871-2610, ext. 5.
For loan applications and more information, visit your local USDA Service Center or go towww.fsa.usda.gov.
Fisher Capital Management Corporate News: FSA suffers staff exodus as it prepares for split
http://www.independent.co.uk/news/business/news/fsa-suffers-staff-exodus-as-it-prepares-for-split-2274569.html
By Sean Farrell
Monday, 25 April 2011
The Financial Services Authority (FSA) lost, on average, one employee a day in the past year, in a near doubling of departures ahead of the planned break-up of the City watchdog.
Figures obtained by The Independent in response to a Freedom of Information request show that 352 employees quit the FSA over the past 12 months, compared with 181 the year before.
The departures came as the FSA prepares to be split into two: by early 2013 a supervisory arm will be transferred to the Bank of England and a separate consumer-protection agency will be created. The rate of attrition raises questions about the FSA’s ability to manage the transition and to hold on to the staff it needs.
The FSA said last month that it expected a tough year and has frozen staff numbers and put initiatives on hold to cope with the workload of the split. Hector Sants, the chief executive, admitted he expected difficulties in hiring and keeping staff.
Peter Snowdon, a partner at the City law firm Norton Rose, said: “The market has picked up a bit and FSA people are always attractive to firms because they have inside knowledge. But this seems to confirm what one hears, which is that people think the chances open to them under the new regime aren’t that great and they are looking at other options.
“It is a concern for [City] firms if the FSA is losing experienced staff because there is an awful lot of change going on and those people can steady the ship.”
The departures have included some of the FSA’s most senior figures, including Sally Dewar, the former head of risk, who left in January.
Jon Pain, managing director of supervision, also left that month before his job was eliminated under the new regime.
Mr Sants was another that was going to quit the watchdog after opposing the break-up, but he was persuaded to stay on and join the Bank of England as a deputy governor to head the new supervisory arm. Between April and September last year, 187 people left the organisation – more than the entire previous year.
That period covers the months either side of the May general election during which the Chancellor attacked the FSA’s handling of the financial crisis and called for its abolition. He finally announced his plan for splitting the regulator in June. Departures peaked at 38 in October but have remained close to the 30 mark each month since. Only 16 people left last month but March is traditionally a quiet period because staff awarded bonuses lose their payouts if they quit before 1 April.
Lindsay Reid, a compliance and regulation specialist at the recruiter Michael Page Financial Services, said the rate of departures was set to pick up as the split gets nearer.
“By this time next year, the FSA will have a clearer idea of the new structures and they are already starting to align people for when the split happens,” Mr Reid said. “Employees are understandably anxious and we have seen a marked increase in the number of candidates enquiring about roles in the new structure and asking for career advice.”
The FSA said last year’s departure rate was comparable with 2006-2007 when 326 staff members left and 2007-2008 when there were 355 departures. In 2008-09, just 206 staff employees quit. The watchdog also pointed out that it has more staff than in those years after it increased employee numbers during the financial crisis.
Kathleen Reeves, human-resources director at the FSA, said: “Staff turnover levels fell during the crisis but are now starting to return to the level you would expect as recruitment picks up in the financial-services sector.”
By Sean Farrell
Monday, 25 April 2011
The Financial Services Authority (FSA) lost, on average, one employee a day in the past year, in a near doubling of departures ahead of the planned break-up of the City watchdog.
Figures obtained by The Independent in response to a Freedom of Information request show that 352 employees quit the FSA over the past 12 months, compared with 181 the year before.
The departures came as the FSA prepares to be split into two: by early 2013 a supervisory arm will be transferred to the Bank of England and a separate consumer-protection agency will be created. The rate of attrition raises questions about the FSA’s ability to manage the transition and to hold on to the staff it needs.
The FSA said last month that it expected a tough year and has frozen staff numbers and put initiatives on hold to cope with the workload of the split. Hector Sants, the chief executive, admitted he expected difficulties in hiring and keeping staff.
Peter Snowdon, a partner at the City law firm Norton Rose, said: “The market has picked up a bit and FSA people are always attractive to firms because they have inside knowledge. But this seems to confirm what one hears, which is that people think the chances open to them under the new regime aren’t that great and they are looking at other options.
“It is a concern for [City] firms if the FSA is losing experienced staff because there is an awful lot of change going on and those people can steady the ship.”
The departures have included some of the FSA’s most senior figures, including Sally Dewar, the former head of risk, who left in January.
Jon Pain, managing director of supervision, also left that month before his job was eliminated under the new regime.
Mr Sants was another that was going to quit the watchdog after opposing the break-up, but he was persuaded to stay on and join the Bank of England as a deputy governor to head the new supervisory arm. Between April and September last year, 187 people left the organisation – more than the entire previous year.
That period covers the months either side of the May general election during which the Chancellor attacked the FSA’s handling of the financial crisis and called for its abolition. He finally announced his plan for splitting the regulator in June. Departures peaked at 38 in October but have remained close to the 30 mark each month since. Only 16 people left last month but March is traditionally a quiet period because staff awarded bonuses lose their payouts if they quit before 1 April.
Lindsay Reid, a compliance and regulation specialist at the recruiter Michael Page Financial Services, said the rate of departures was set to pick up as the split gets nearer.
“By this time next year, the FSA will have a clearer idea of the new structures and they are already starting to align people for when the split happens,” Mr Reid said. “Employees are understandably anxious and we have seen a marked increase in the number of candidates enquiring about roles in the new structure and asking for career advice.”
The FSA said last year’s departure rate was comparable with 2006-2007 when 326 staff members left and 2007-2008 when there were 355 departures. In 2008-09, just 206 staff employees quit. The watchdog also pointed out that it has more staff than in those years after it increased employee numbers during the financial crisis.
Kathleen Reeves, human-resources director at the FSA, said: “Staff turnover levels fell during the crisis but are now starting to return to the level you would expect as recruitment picks up in the financial-services sector.”
Fisher Capital Management Investment Solutions: GOP Begins New Push to Delay EPA Rules on Toxic Power Plant Emissions
http://www.reuters.com/article/2011/04/20/idUS329099830920110420
By Lisa Song at SolveClimate
Wed Apr 20, 2011 2:30pm EDT
Republicans say installing long-overdue pollution controls would harm economic recovery, while advocates claim the rules would create jobs and save lives
By Lisa Song, SolveClimate News
Under pressure from industry, Congressional Republicans are urging the U.S. EPA to further delay long-overdue rules that would limit more than 80 air toxics emitted by coal-burning power plants, barely a month after the agency announced them.
At least one lawmaker, Rep. Edward Whitfield of Kentucky — a state which gets more than 90 percent of its power from coal — has said he will soon introduce legislation to postpone implementation of the regulations.
The rules in question are EPA’s air toxics standards to control mercury and other poisonous substances from power plants, as well as the Maximum Achievable Control Technology (MACT) standards that govern hazardous emissions from boilers and cement plants.
EPA released the nation’s first regulations for toxic power plant emissions on March 16. The boiler rules were announced in February 2011 and the cement standards in August 2010. All of the policies are mandated by the 1990 amendment to the Clean Air Act and originally set to be finalized in 2000.
According to EPA, the mercury and air toxics standards alone would prevent up to 17,000 premature deaths and 11,000 heart attacks each year.
Utilities and business groups say the anti-pollution rules would be too costly to implement and would force early shutdowns of power plants, threatening jobs and economic recovery.
During a hearing on the proposed EPA rulemakings last Friday by the House Energy and Commerce Committee’s Subcommittee on Energy and Power, Rep. Whitfield, the subcommittee chair, said Congress has the right to change the Clean Air Act amendment if necessary. Whitfield declared his intent last week to introduce legislation after the two-week recess ends on May 1 that would delay the regulations.
In an email to SolveClimate News, a spokesperson for Rep. Whitfield said the details of the draft bill are still being finalized and declined to comment on the length of the proposed delay.
“It’s quite clear that EPA…is determined to pass regulations to increase the cost of coal and make other energy sources more competitive,” Rep. Whitfield said at the hearing. “We need a national debate on the direction that the EPA is going and the method that they’re using to get there.”
Others on the subcommittee believe the country has waited long enough for the rules designed to protect public health.
“I’m not a math major,” said Rep. Bobby Rush (D-Ill.), “but if these were supposed to be completed in 2000 and it’s now 2011, then plant operators will have an almost 15-year delay in meeting these standards,” given that utilities have up to four years to comply.
‘Far Less Draconian’ than Many Feared
The holdup was due to a series of lawsuits and court orders.
The air toxics standards were designed to control 84 different air pollutants, including mercury, benzene and acid gases. When the Bush administration’s EPA first introduced an alternative mercury cap-and-trade system in 2004, which did not cover the other pollutants, environmentalists sued and won their case. EPA was under a court order to release the draft rule last month.
There was a lot of speculation over the years about how tough the standards would be, and whether utilities would have flexibility in complying with them.
They ended up being “far less draconian than many in the industry had feared,” energy policy expert Susan Tierney told SolveClimate News. For instance, there were concerns that EPA would force all power plants to use the same kind of pollution-control technology. Instead, utilities can choose from a variety of measures.
Tierney is managing principal at Analysis Group, a Boston-based energy consulting firm, and former assistant secretary for policy at the U.S. Department of Energy. She did not attend the hearing and is not directly involved with the EPA rules or related lawsuits.
GOP Says Not Trying to Repeal Rules
Michigan Republican Rep. Fred Upton, chair of the House Energy and Commerce Committee, said the goal should not be “to repeal these regulations [but to] advance them in a reasonable way” without raising electricity prices or reducing jobs.
Of the seven witnesses present at the hearing, five were utility and manufacturing representatives who expressed worry over the regulations. The remaining two — Michael Bradley, executive director of the nonprofit Clean Energy Group, and John Walke, director of the Natural Resources Defense Council’s (NRDC) Clean Air Program — urged the subcommittee to refrain from delay tactics.
EPA representatives were invited as witnesses but did not show up, prompting subcommittee member Rep. Joe Barton (R-Texas) to relabel the agency as the “Evaporating Personnel Administration.”
Rep. Rush countered that the EPA did not receive proper advance notice, and that the agency has very few employees with the expertise to act as witnesses. Friday’s hearing was the third in a week that requested EPA’s presence (an EPA representative attended just one of the three). In each case, the EPA had a week’s notice before the hearings took place.
‘Unreasonable’ Compliance Period
Under the new regulations, EPA would give utilities three years to install adequate pollution-control technologies.
Tom Fanning, chairman of the electric utility Southern Company and one of the panel’s witnesses, said the compliance period is “unreasonable.”
“We are very concerned … [and we] believe it could affect the reliability of power,” Fanning said, citing worries about costs, job losses and decreased capacity from power plant closures.
Bradley of the Clean Energy Group said industry has been expecting these regulations since 2000. “If there was any surprise, it was the degree of flexibility … While not perfect, [the regulations] are reasonable and consistent with the Clean Air Act.”
His comments echo a letter published in The Wall Street Journal late last year by eight utility executives voicing their support for the air toxics standards.
“The electric sector has known that these rules were coming,” the letter said. “Many companies, including ours, have already invested in modern air-pollution control technologies and cleaner and more efficient power plants.”
The EPA will give one-year extensions and possibly longer for plants that need extra time to comply, said Bradley. Some 60 percent of coal plants already have scrubbers so “we are not starting from scratch.”
Most of the control technologies can be installed in less than two years, he added. Companies can also average the emissions from multiple units to reduce the number of overall installations.
Citing a November 2010 letter from the trade group Institute of Clean Air Companies (ICAC), Bradley said the power industry has enough labor to get the job done.
ICAC Executive Director David Foerter composed the letter in response to an inquiry from Sen. Thomas Carper (D-Del.). In his letter, Foerter assured Carper that “based on a history of successes, we are now even more resolute that labor availability will in no way constrain the industry’s ability to fully and timely comply with the proposed … [air toxics] rules.
“Contrary to any concerns or rhetoric pointing to labor shortages, we would hope that efforts that clean the air also put Americans back to work.”
Pollution Controls Already In Use
Paul Miller, deputy director of Northeast States for Coordinated Air Use Management (NESCAUM), told SolveClimate News that many control technologies are already in use. “This isn’t Star Wars technology … [There's no] testing barrier.”
According to a new report by consulting firm M.J. Bradley and Associates and co-authored by Bradley and Tierney of Analysis Group, some 200,000 megawatts worth of coal plants already have, or are planning to install, adequate pollution controls. That covers about 60 percent of the total U.S. coal fleet, which generates 330,000 megawatts.
Another 20,000 to 30,000 megawatts are headed towards retirement, said Tierney. These plants are small, old and generally inefficient. They’re already under economic pressure due to low natural gas prices and may be “pushed over the edge” by the EPA rules, she said.
(Listen to SolveClimate News podcast episode: Coal Owners Retiring ‘Signficant Components of Their Fleets’)
“It’s like an old car that at some point loses a carburetor and it’s just not worth it to repair,” said Tierney.
In total, about 10 percent of coal capacity may be headed for retirement, said Tierney. Fanning of Southern Company said during his testimony the number is closer to 20 percent.
Bradley said that claim is an overestimate, adding that new pollution controls could limit the number of coal-plant casualties. “When we look at the flexibility included in the proposals along with some of the technologies deployed recently, it’s going to mitigate the number of retirements.”
He pointed to the technology of dry sorbent injection, an acid-gas capturing device designed for small coal plants. It’s relatively cheap, said Bradley, and already used in 43 plants.
While Fanning warned that shutdowns could lead to possible blackouts, Tierney said there is enough surplus capacity on a national scale to make up for lost power capacity.
On a regional level, Tierney said that some older and less efficient plants that might otherwise shut down would remain open to keep up adequate power supplies. In those cases, the EPA would give special extensions to allow them to reach compliance.
Costs of Control Technologies
The EPA estimates that control technologies would cost the industry nearly $11 billion a year, a price tag far outweighed by the up to $140 billion in annual health and economic benefits.
When placed in context, said Bradley, $11 billion is at most 10 percent of the $80 to $110 billion that the industry spends each year on capital and infrastructure projects.
Ratepayers would bear some of the cost of new pollution controls. On average, the EPA projects that retail electricity prices would increase 3.7 percent in 2015 and drop to a 1.9 percent increase by 2030.
Those percentage estimates are a “national average that will vary quite a bit from state to state,” said Bradley. But electricity rates also vary across different regions, so large percentage increases might have little impact in some parts of the country.
In addition to public health gains, maintaining EPA’s current timeline is in the interest of businesses, said Tierney, arguing that utilities need to know what to expect in order to make sound financial decisions.
“It would be terrible to postpone these [regulations] … not just because the toxins have been identified as problematic for a decade … but also from a business point of view.”
See Also: EPA to Release Long-Awaited Rules on Toxic Power Plant Emissions This Week Report: Business Groups Say Clean Air Act Has Been a “Very Good Investment” Coal-Reliant Kentucky Takes First Steps to Solve Energy Dilemma Financial Shortfall at America’s First CCS Plant Highlights Absence of Carbon Price
By Lisa Song at SolveClimate
Wed Apr 20, 2011 2:30pm EDT
Republicans say installing long-overdue pollution controls would harm economic recovery, while advocates claim the rules would create jobs and save lives
By Lisa Song, SolveClimate News
Under pressure from industry, Congressional Republicans are urging the U.S. EPA to further delay long-overdue rules that would limit more than 80 air toxics emitted by coal-burning power plants, barely a month after the agency announced them.
At least one lawmaker, Rep. Edward Whitfield of Kentucky — a state which gets more than 90 percent of its power from coal — has said he will soon introduce legislation to postpone implementation of the regulations.
The rules in question are EPA’s air toxics standards to control mercury and other poisonous substances from power plants, as well as the Maximum Achievable Control Technology (MACT) standards that govern hazardous emissions from boilers and cement plants.
EPA released the nation’s first regulations for toxic power plant emissions on March 16. The boiler rules were announced in February 2011 and the cement standards in August 2010. All of the policies are mandated by the 1990 amendment to the Clean Air Act and originally set to be finalized in 2000.
According to EPA, the mercury and air toxics standards alone would prevent up to 17,000 premature deaths and 11,000 heart attacks each year.
Utilities and business groups say the anti-pollution rules would be too costly to implement and would force early shutdowns of power plants, threatening jobs and economic recovery.
During a hearing on the proposed EPA rulemakings last Friday by the House Energy and Commerce Committee’s Subcommittee on Energy and Power, Rep. Whitfield, the subcommittee chair, said Congress has the right to change the Clean Air Act amendment if necessary. Whitfield declared his intent last week to introduce legislation after the two-week recess ends on May 1 that would delay the regulations.
In an email to SolveClimate News, a spokesperson for Rep. Whitfield said the details of the draft bill are still being finalized and declined to comment on the length of the proposed delay.
“It’s quite clear that EPA…is determined to pass regulations to increase the cost of coal and make other energy sources more competitive,” Rep. Whitfield said at the hearing. “We need a national debate on the direction that the EPA is going and the method that they’re using to get there.”
Others on the subcommittee believe the country has waited long enough for the rules designed to protect public health.
“I’m not a math major,” said Rep. Bobby Rush (D-Ill.), “but if these were supposed to be completed in 2000 and it’s now 2011, then plant operators will have an almost 15-year delay in meeting these standards,” given that utilities have up to four years to comply.
‘Far Less Draconian’ than Many Feared
The holdup was due to a series of lawsuits and court orders.
The air toxics standards were designed to control 84 different air pollutants, including mercury, benzene and acid gases. When the Bush administration’s EPA first introduced an alternative mercury cap-and-trade system in 2004, which did not cover the other pollutants, environmentalists sued and won their case. EPA was under a court order to release the draft rule last month.
There was a lot of speculation over the years about how tough the standards would be, and whether utilities would have flexibility in complying with them.
They ended up being “far less draconian than many in the industry had feared,” energy policy expert Susan Tierney told SolveClimate News. For instance, there were concerns that EPA would force all power plants to use the same kind of pollution-control technology. Instead, utilities can choose from a variety of measures.
Tierney is managing principal at Analysis Group, a Boston-based energy consulting firm, and former assistant secretary for policy at the U.S. Department of Energy. She did not attend the hearing and is not directly involved with the EPA rules or related lawsuits.
GOP Says Not Trying to Repeal Rules
Michigan Republican Rep. Fred Upton, chair of the House Energy and Commerce Committee, said the goal should not be “to repeal these regulations [but to] advance them in a reasonable way” without raising electricity prices or reducing jobs.
Of the seven witnesses present at the hearing, five were utility and manufacturing representatives who expressed worry over the regulations. The remaining two — Michael Bradley, executive director of the nonprofit Clean Energy Group, and John Walke, director of the Natural Resources Defense Council’s (NRDC) Clean Air Program — urged the subcommittee to refrain from delay tactics.
EPA representatives were invited as witnesses but did not show up, prompting subcommittee member Rep. Joe Barton (R-Texas) to relabel the agency as the “Evaporating Personnel Administration.”
Rep. Rush countered that the EPA did not receive proper advance notice, and that the agency has very few employees with the expertise to act as witnesses. Friday’s hearing was the third in a week that requested EPA’s presence (an EPA representative attended just one of the three). In each case, the EPA had a week’s notice before the hearings took place.
‘Unreasonable’ Compliance Period
Under the new regulations, EPA would give utilities three years to install adequate pollution-control technologies.
Tom Fanning, chairman of the electric utility Southern Company and one of the panel’s witnesses, said the compliance period is “unreasonable.”
“We are very concerned … [and we] believe it could affect the reliability of power,” Fanning said, citing worries about costs, job losses and decreased capacity from power plant closures.
Bradley of the Clean Energy Group said industry has been expecting these regulations since 2000. “If there was any surprise, it was the degree of flexibility … While not perfect, [the regulations] are reasonable and consistent with the Clean Air Act.”
His comments echo a letter published in The Wall Street Journal late last year by eight utility executives voicing their support for the air toxics standards.
“The electric sector has known that these rules were coming,” the letter said. “Many companies, including ours, have already invested in modern air-pollution control technologies and cleaner and more efficient power plants.”
The EPA will give one-year extensions and possibly longer for plants that need extra time to comply, said Bradley. Some 60 percent of coal plants already have scrubbers so “we are not starting from scratch.”
Most of the control technologies can be installed in less than two years, he added. Companies can also average the emissions from multiple units to reduce the number of overall installations.
Citing a November 2010 letter from the trade group Institute of Clean Air Companies (ICAC), Bradley said the power industry has enough labor to get the job done.
ICAC Executive Director David Foerter composed the letter in response to an inquiry from Sen. Thomas Carper (D-Del.). In his letter, Foerter assured Carper that “based on a history of successes, we are now even more resolute that labor availability will in no way constrain the industry’s ability to fully and timely comply with the proposed … [air toxics] rules.
“Contrary to any concerns or rhetoric pointing to labor shortages, we would hope that efforts that clean the air also put Americans back to work.”
Pollution Controls Already In Use
Paul Miller, deputy director of Northeast States for Coordinated Air Use Management (NESCAUM), told SolveClimate News that many control technologies are already in use. “This isn’t Star Wars technology … [There's no] testing barrier.”
According to a new report by consulting firm M.J. Bradley and Associates and co-authored by Bradley and Tierney of Analysis Group, some 200,000 megawatts worth of coal plants already have, or are planning to install, adequate pollution controls. That covers about 60 percent of the total U.S. coal fleet, which generates 330,000 megawatts.
Another 20,000 to 30,000 megawatts are headed towards retirement, said Tierney. These plants are small, old and generally inefficient. They’re already under economic pressure due to low natural gas prices and may be “pushed over the edge” by the EPA rules, she said.
(Listen to SolveClimate News podcast episode: Coal Owners Retiring ‘Signficant Components of Their Fleets’)
“It’s like an old car that at some point loses a carburetor and it’s just not worth it to repair,” said Tierney.
In total, about 10 percent of coal capacity may be headed for retirement, said Tierney. Fanning of Southern Company said during his testimony the number is closer to 20 percent.
Bradley said that claim is an overestimate, adding that new pollution controls could limit the number of coal-plant casualties. “When we look at the flexibility included in the proposals along with some of the technologies deployed recently, it’s going to mitigate the number of retirements.”
He pointed to the technology of dry sorbent injection, an acid-gas capturing device designed for small coal plants. It’s relatively cheap, said Bradley, and already used in 43 plants.
While Fanning warned that shutdowns could lead to possible blackouts, Tierney said there is enough surplus capacity on a national scale to make up for lost power capacity.
On a regional level, Tierney said that some older and less efficient plants that might otherwise shut down would remain open to keep up adequate power supplies. In those cases, the EPA would give special extensions to allow them to reach compliance.
Costs of Control Technologies
The EPA estimates that control technologies would cost the industry nearly $11 billion a year, a price tag far outweighed by the up to $140 billion in annual health and economic benefits.
When placed in context, said Bradley, $11 billion is at most 10 percent of the $80 to $110 billion that the industry spends each year on capital and infrastructure projects.
Ratepayers would bear some of the cost of new pollution controls. On average, the EPA projects that retail electricity prices would increase 3.7 percent in 2015 and drop to a 1.9 percent increase by 2030.
Those percentage estimates are a “national average that will vary quite a bit from state to state,” said Bradley. But electricity rates also vary across different regions, so large percentage increases might have little impact in some parts of the country.
In addition to public health gains, maintaining EPA’s current timeline is in the interest of businesses, said Tierney, arguing that utilities need to know what to expect in order to make sound financial decisions.
“It would be terrible to postpone these [regulations] … not just because the toxins have been identified as problematic for a decade … but also from a business point of view.”
See Also: EPA to Release Long-Awaited Rules on Toxic Power Plant Emissions This Week Report: Business Groups Say Clean Air Act Has Been a “Very Good Investment” Coal-Reliant Kentucky Takes First Steps to Solve Energy Dilemma Financial Shortfall at America’s First CCS Plant Highlights Absence of Carbon Price
Fisher Capital Management Investment Solutions: Bin Laden’s Death to Boost Pakistan Economy, Stocks: Strategist
http://www.cnbc.com/id/42873041
Published: Tuesday, 3 May 2011 | 3:29 AM ET
By: Geraldine Tan
CNBC News Assistant
The killing of Osama bin Laden is a positive event for Pakistan’s economy and stock market, despite doubts about whether the country’s military was complicit in hiding the Al Qaeda leader, according to a strategist.
Sajjad Hussain | Getty Images
Mark Matthews, equity strategist at Macquarie, said the positive comments from top U.S. officials including Secretary of State Hillary Clinton on Pakistan’s role against terrorism would eventually lead to the release of much-delayed financial aid for the country. That, in turn, would help the government lower its fiscal deficit and boost the economy.
“For about 5-6 months now, the American’s and coalition money have not been released into Pakistan. And Pakistan has a very wide fiscal deficit. It’s 6.1 percent of GDP and it is the major issue overhanging their stock market,” Matthews added.
The aid package worth $7.5 billion over 5 years has been promoted by Democrat Senator John Kerry and Republican Senator Dick Lugar. But it’s been in limbo because of U.S. concerns about corruption in Pakistan.
Once, that’s resolved, Matthews expects the stock market to benefit. “There are lots of gems in that country. There are probably more gems there, stock-wise, than any other country in Asia,” Matthews told CNBC’s Bernie Lo.
The Karachi stock index rallied late last year along with other emerging markets, but so far this year it has dropped 6 percent because of rising fuel prices and a growing budget deficit. According to Macquarie, Karachi’s stock index not only offers value, but also many well-run companies.
For investors looking for stocks with volume, Matthews suggests looking atPakistan Oilfields [PKOL.KA 326.80 -0.75 (-0.23%) ]. He likes this company as it has a daily turnover of $5 million and trades on about 5x earnings, with a 9.5 percent dividend yield.
And for investors who can stomach the illiquidity in the small-cap space, he recommends Askari Bank [ASBK.KA 11.50 -0.25 (-2.13%) ].
“If you annualize that (the bank’s first-quarter results), that is on 4x PE and their asset quality has held up remarkably well, NPLs are very low and its at a 40 percent discount to book,” noted Matthews.
But he also says investors need to be cautious, and he said he was recommending taking only small positions. (Watch full interview here.)
Published: Tuesday, 3 May 2011 | 3:29 AM ET
By: Geraldine Tan
CNBC News Assistant
The killing of Osama bin Laden is a positive event for Pakistan’s economy and stock market, despite doubts about whether the country’s military was complicit in hiding the Al Qaeda leader, according to a strategist.
Sajjad Hussain | Getty Images
Mark Matthews, equity strategist at Macquarie, said the positive comments from top U.S. officials including Secretary of State Hillary Clinton on Pakistan’s role against terrorism would eventually lead to the release of much-delayed financial aid for the country. That, in turn, would help the government lower its fiscal deficit and boost the economy.
“For about 5-6 months now, the American’s and coalition money have not been released into Pakistan. And Pakistan has a very wide fiscal deficit. It’s 6.1 percent of GDP and it is the major issue overhanging their stock market,” Matthews added.
The aid package worth $7.5 billion over 5 years has been promoted by Democrat Senator John Kerry and Republican Senator Dick Lugar. But it’s been in limbo because of U.S. concerns about corruption in Pakistan.
Once, that’s resolved, Matthews expects the stock market to benefit. “There are lots of gems in that country. There are probably more gems there, stock-wise, than any other country in Asia,” Matthews told CNBC’s Bernie Lo.
The Karachi stock index rallied late last year along with other emerging markets, but so far this year it has dropped 6 percent because of rising fuel prices and a growing budget deficit. According to Macquarie, Karachi’s stock index not only offers value, but also many well-run companies.
For investors looking for stocks with volume, Matthews suggests looking atPakistan Oilfields [PKOL.KA 326.80 -0.75 (-0.23%) ]. He likes this company as it has a daily turnover of $5 million and trades on about 5x earnings, with a 9.5 percent dividend yield.
And for investors who can stomach the illiquidity in the small-cap space, he recommends Askari Bank [ASBK.KA 11.50 -0.25 (-2.13%) ].
“If you annualize that (the bank’s first-quarter results), that is on 4x PE and their asset quality has held up remarkably well, NPLs are very low and its at a 40 percent discount to book,” noted Matthews.
But he also says investors need to be cautious, and he said he was recommending taking only small positions. (Watch full interview here.)
Fisher Capital Management Corporate News: Even Good Economic News Can’t Help the Greenback Now
http://blogs.wsj.com/source/2011/05/03/even-good-economic-news-cant-help-the-greenback-now/?mod=google_news_blog
By NICHOLAS HASTINGS
Summer may be on its way and Osama bin Laden may be dead, but that doesn’t mean the sun is going to shine on the dollar.
Ben Bernanke made sure of that.
The Fed Chairman’s insistence last week that U.S. ultra-loose monetary policy is here to stay not only indicated his lack of confidence in the recovery but confirmed fears the U.S. Federal Reserve is falling behind the curve.
As a result, not even good news will help the U.S. currency now.
Bloomberg Ben Bernanke, chairman of the U.S. Federal Reserve.
See how the dollar has already fallen against the euro this year.
Commerzbank hit the nail on the head when it noted that the euro reached its high against the dollar Monday after, not before, the publication of the latest manufacturing ISM, which came in above expectations. Surprise good economic news normally helps the dollar as it raises expectations of higher interest rates.
“This episode demonstrates: marginal news on the state of the U.S. economy does not matter at present,” the Commerzbank strategy team said.
This will probably become even more obvious as other major central banks, rather than the U.S., continue to point to higher interest rates.
The Reserve Bank of India kicked off the week with a surprise 50 basis point rate rise. With its manufacturing PMI steaming ahead, China is expected to accelerate its de facto tightening with a stronger yuan.
The Reserve Bank of Australia left its rates unchanged earlier Tuesday, but left markets in no doubt that more rate increases are on their way.
Closer to home, the European Central Bank is also expected to leave its rates unchanged later this week, but will more than likely give a signal of another rate rise in June.
As the Bundesbank’s brand new president Jens Weidmann wanted to make clear in his first public utterance Monday, he wants euro-zone policy to be “normalized”.
The Bank of England will also likely sit on its hands at its next policy meeting this week, but that doesn’t mean the debate over whether U.K. rates should rise is dead.
All this means that even good economic news will not save the dollar now.
The true test could well come on Friday with the latest unemployment numbers, data that traditionally should give the dollar direction.
But, if the Fed is saying no change is in sight, even strong non-farm payrolls won’t stop the dollar from floundering.
This whole “good news is bad news” theme was apparent as Osama bin Laden’s assassination by U.S. forces in Pakistan broke.
The initial euphoria that the al Qaeda leader is dead after a 10-year manhunt quickly turned sour as the risk of terrorist reprisals increased.
If that is the case, deteriorating risk sentiment in global markets may give the dollar a little support on the one hand.
But, with interest rate differentials likely to continue moving against the dollar, chances are that the U.S. dollar will extend the decline it has pursued all year, pushing steadily to new lows against other majors such as the euro.
By NICHOLAS HASTINGS
Summer may be on its way and Osama bin Laden may be dead, but that doesn’t mean the sun is going to shine on the dollar.
Ben Bernanke made sure of that.
The Fed Chairman’s insistence last week that U.S. ultra-loose monetary policy is here to stay not only indicated his lack of confidence in the recovery but confirmed fears the U.S. Federal Reserve is falling behind the curve.
As a result, not even good news will help the U.S. currency now.
Bloomberg Ben Bernanke, chairman of the U.S. Federal Reserve.
See how the dollar has already fallen against the euro this year.
Commerzbank hit the nail on the head when it noted that the euro reached its high against the dollar Monday after, not before, the publication of the latest manufacturing ISM, which came in above expectations. Surprise good economic news normally helps the dollar as it raises expectations of higher interest rates.
“This episode demonstrates: marginal news on the state of the U.S. economy does not matter at present,” the Commerzbank strategy team said.
This will probably become even more obvious as other major central banks, rather than the U.S., continue to point to higher interest rates.
The Reserve Bank of India kicked off the week with a surprise 50 basis point rate rise. With its manufacturing PMI steaming ahead, China is expected to accelerate its de facto tightening with a stronger yuan.
The Reserve Bank of Australia left its rates unchanged earlier Tuesday, but left markets in no doubt that more rate increases are on their way.
Closer to home, the European Central Bank is also expected to leave its rates unchanged later this week, but will more than likely give a signal of another rate rise in June.
As the Bundesbank’s brand new president Jens Weidmann wanted to make clear in his first public utterance Monday, he wants euro-zone policy to be “normalized”.
The Bank of England will also likely sit on its hands at its next policy meeting this week, but that doesn’t mean the debate over whether U.K. rates should rise is dead.
All this means that even good economic news will not save the dollar now.
The true test could well come on Friday with the latest unemployment numbers, data that traditionally should give the dollar direction.
But, if the Fed is saying no change is in sight, even strong non-farm payrolls won’t stop the dollar from floundering.
This whole “good news is bad news” theme was apparent as Osama bin Laden’s assassination by U.S. forces in Pakistan broke.
The initial euphoria that the al Qaeda leader is dead after a 10-year manhunt quickly turned sour as the risk of terrorist reprisals increased.
If that is the case, deteriorating risk sentiment in global markets may give the dollar a little support on the one hand.
But, with interest rate differentials likely to continue moving against the dollar, chances are that the U.S. dollar will extend the decline it has pursued all year, pushing steadily to new lows against other majors such as the euro.
Fisher Capital Management Investment Solutions: Royal Wedding Boosts UK Tourism Figures
http://www.compareaway.co.uk/news/2011/05/03/royal-wedding-boosts-uk-tourism-figures/
May 3rd, 2011 | Travel News
By Chris Bradley
Many people visited the UK to watch the Royal Wedding, in fact one million took to the streets in London and many more watched on big screens in Hyde Park and around the country and it has been estimated that the UK economy got a massive boost from the event. This would have mainly gone in to the travel and tourism sector of the economy which is great news for a segment of the economy which has been suffering in recent times.
The Royal Wedding passed without a hitch and many were impressed by the behaviour of the crowd. This was mainly due to arrests made before the event where the police made sure that anyone they felt was likely to cause trouble at the event was prevented from being able to attend and also the police presence making sure that the crowd were under control and also carefully put in to position.
This gave a really favourable impression of the country as a whole and is also a great sign for the organisation for the Olympics. This should help people to feel that the UK is a safe place to come and therefore should help to encourage more tourists in. With remaining Olympic tickets going up for sale in June then it may be that more foreigners decide to buy some, having seen a great view of the country when watching Friday’s wedding. It may also encourage people to look in when the Olympic ticket resale website opens next year. Those that missed out on the bidding or have now changed their mind will get a chance to still take part in the event.
May 3rd, 2011 | Travel News
By Chris Bradley
Many people visited the UK to watch the Royal Wedding, in fact one million took to the streets in London and many more watched on big screens in Hyde Park and around the country and it has been estimated that the UK economy got a massive boost from the event. This would have mainly gone in to the travel and tourism sector of the economy which is great news for a segment of the economy which has been suffering in recent times.
The Royal Wedding passed without a hitch and many were impressed by the behaviour of the crowd. This was mainly due to arrests made before the event where the police made sure that anyone they felt was likely to cause trouble at the event was prevented from being able to attend and also the police presence making sure that the crowd were under control and also carefully put in to position.
This gave a really favourable impression of the country as a whole and is also a great sign for the organisation for the Olympics. This should help people to feel that the UK is a safe place to come and therefore should help to encourage more tourists in. With remaining Olympic tickets going up for sale in June then it may be that more foreigners decide to buy some, having seen a great view of the country when watching Friday’s wedding. It may also encourage people to look in when the Olympic ticket resale website opens next year. Those that missed out on the bidding or have now changed their mind will get a chance to still take part in the event.
Fisher Capital Management Corporate News – UK Economy: Private Sector Job Vacancies Drop By 2% In April Compared To March 2011 Says Reed
http://www.egovmonitor.com/node/41841
Source: eGov monitor – A Policy Dialogue Platform
Published Tuesday, 3 May, 2011 – 10:36
New analysis of vacanices in 8,000 employers reveal that job opportunities in the public sector has fallen by three points or 2% between March and April 2011, according to Reed recruitment agency.
The data reveals the drop in private sector vacancies was due to recruitment slow down in the banking and tourism sectors which saw a huge surge in recruitment in February. However, the 2% drop is still 22% higher than it was during the same period last year.
However, the job growth comes from increases in the engineering, customer services, estate agency, human resources, information technology and telecoms sectors. But there has been no growth in public sector job market.
Martin Warnes, Reed’s UK MD pointed out that April’s loss was expected due to the Easter holidays and the subsequent bank holiday for the Royal wedding.
“Clearly business growth has been sustained at a higher level than the last quarter of 2010, but continued recovery remains difficult to predict,” he added.
Source: eGov monitor – A Policy Dialogue Platform
Published Tuesday, 3 May, 2011 – 10:36
New analysis of vacanices in 8,000 employers reveal that job opportunities in the public sector has fallen by three points or 2% between March and April 2011, according to Reed recruitment agency.
The data reveals the drop in private sector vacancies was due to recruitment slow down in the banking and tourism sectors which saw a huge surge in recruitment in February. However, the 2% drop is still 22% higher than it was during the same period last year.
However, the job growth comes from increases in the engineering, customer services, estate agency, human resources, information technology and telecoms sectors. But there has been no growth in public sector job market.
Martin Warnes, Reed’s UK MD pointed out that April’s loss was expected due to the Easter holidays and the subsequent bank holiday for the Royal wedding.
“Clearly business growth has been sustained at a higher level than the last quarter of 2010, but continued recovery remains difficult to predict,” he added.
Tuesday, May 3, 2011
Fisher Capital Management - Japan Elects a New Premier Part 2
Fisher Capital Management Eight and a half months after riding the Democratic Party of Japan’s
(DPJ) historic lower house victory into office, Prime Minister Yukio
Hatoyama announced his resignation, having haphazardly frittered
away a chest brimming with political capital.
Major newspapers said that Hatoyama was resigning mainly for
two reasons: his failure to keep his promise to relocate the functions
of US Marine Corps Air Station Futenma, Okinawa, out of Okinawa
Prefecture, and a political funding scandal that included his mother’s
provision of some ¥1.26 billion to him over years.
Fisher Capital Management - Japan Elects a New Premier Part 2: Instead of deregulation and lower corporate taxes, he envisions
increased employment and consumption through focused
government spending in nursing, medicine and other social welfare
fields. But some economists expressed doubts; they say there is no
guarantee that the positive effect of government spending can
steadily outpace the negative effects of tax hikes.
Kan seems to be open to the idea of raising Japan’s consumption
tax from its current level of 5%, though the approach of the upperhouse
election on July and concerns over a political backlash suggest
caution will be the government’s modus operandi.
“Any rise in the consumption tax rate must be offset by lower levies
on daily goods as well as refunds for low-income households”, he
recently said. But he also hopes to reduce corporate taxes from the
current 40% rate to around 25%, in line with other major countries.
In the foreign exchange market, Kan has earned a reputation as a
weak-yen advocate. “The business community says that a yen in
the mid-90s against the dollar is appropriate, so it would be better
if it weakens a bit further”, he said in January, shortly after becoming
finance minister.
Fisher Capital Management - Japan Elects a New Premier Part 2: Market observers believe that Kan still supports a weaker yen and
that the Japanese currency could depreciate against the US dollar.
Regarding monetary policy, Kan is generally considered an advocate
of inflation-targeting and quantitative easing. As finance minister,
he has put some political pressure on the Bank of Japan (BOJ) to
fight deflation more aggressively, he nudged the BOJ to double a
special bank lending program introduced in December. The bond
market believes Kan is a wise choice to manage the sustainability
of Japan’s government debt.
The DPJ had promised to unveil a long-term plan to improve public
finances. However, “postponement is likely because of the current
political churn, and any real ‘meat’ in the plan will probably not
be disclosed until after the Upper House election” … says Flemming
Nielsen, senior analyst at Danske research.
Kan is a self-made man, ascending into politics after years toiling
in citizen movements and he has a reputation as a quick learner
and a pragmatic politician, with sharp elbows and an aversion to
any criticism.
The country he now leads is facing dire long-term problems that
beg for strong leadership, including a staggering level of public
debt, a stagnant economy, and an ageing population. He has a few
weeks to fix the impression left by nine months of incompetent DPJ
governance.
If he fails, the party will be routed in the elections for the Diet’s
upper house.
(DPJ) historic lower house victory into office, Prime Minister Yukio
Hatoyama announced his resignation, having haphazardly frittered
away a chest brimming with political capital.
Major newspapers said that Hatoyama was resigning mainly for
two reasons: his failure to keep his promise to relocate the functions
of US Marine Corps Air Station Futenma, Okinawa, out of Okinawa
Prefecture, and a political funding scandal that included his mother’s
provision of some ¥1.26 billion to him over years.
Fisher Capital Management - Japan Elects a New Premier Part 2: Instead of deregulation and lower corporate taxes, he envisions
increased employment and consumption through focused
government spending in nursing, medicine and other social welfare
fields. But some economists expressed doubts; they say there is no
guarantee that the positive effect of government spending can
steadily outpace the negative effects of tax hikes.
Kan seems to be open to the idea of raising Japan’s consumption
tax from its current level of 5%, though the approach of the upperhouse
election on July and concerns over a political backlash suggest
caution will be the government’s modus operandi.
“Any rise in the consumption tax rate must be offset by lower levies
on daily goods as well as refunds for low-income households”, he
recently said. But he also hopes to reduce corporate taxes from the
current 40% rate to around 25%, in line with other major countries.
In the foreign exchange market, Kan has earned a reputation as a
weak-yen advocate. “The business community says that a yen in
the mid-90s against the dollar is appropriate, so it would be better
if it weakens a bit further”, he said in January, shortly after becoming
finance minister.
Fisher Capital Management - Japan Elects a New Premier Part 2: Market observers believe that Kan still supports a weaker yen and
that the Japanese currency could depreciate against the US dollar.
Regarding monetary policy, Kan is generally considered an advocate
of inflation-targeting and quantitative easing. As finance minister,
he has put some political pressure on the Bank of Japan (BOJ) to
fight deflation more aggressively, he nudged the BOJ to double a
special bank lending program introduced in December. The bond
market believes Kan is a wise choice to manage the sustainability
of Japan’s government debt.
The DPJ had promised to unveil a long-term plan to improve public
finances. However, “postponement is likely because of the current
political churn, and any real ‘meat’ in the plan will probably not
be disclosed until after the Upper House election” … says Flemming
Nielsen, senior analyst at Danske research.
Kan is a self-made man, ascending into politics after years toiling
in citizen movements and he has a reputation as a quick learner
and a pragmatic politician, with sharp elbows and an aversion to
any criticism.
The country he now leads is facing dire long-term problems that
beg for strong leadership, including a staggering level of public
debt, a stagnant economy, and an ageing population. He has a few
weeks to fix the impression left by nine months of incompetent DPJ
governance.
If he fails, the party will be routed in the elections for the Diet’s
upper house.
Fisher Capital Management - Japan Elects a New Premier Part 1
Fisher Capital Management Eight and a half months after riding the Democratic Party of Japan’s
(DPJ) historic lower house victory into office, Prime Minister Yukio
Hatoyama announced his resignation, having haphazardly frittered
away a chest brimming with political capital.
Major newspapers said that Hatoyama was resigning mainly for
two reasons: his failure to keep his promise to relocate the functions
of US Marine Corps Air Station Futenma, Okinawa, out of Okinawa
Prefecture, and a political funding scandal that included his mother’s
provision of some ¥1.26 billion to him over years.
Following Hatoyama’s resignation, Minister of Finance Naoto Kan
was elected as the new Prime Minister, the fifth in four years.
At his inaugural press conference Kan proposed a comprehensive
reconstruction of the economy, public finance, and social security
as his priority, in addition to reforming public administration, and
conducting responsible diplomatic and defence policy.
Fisher Capital Management Report- Japan Elects a New Premier Part 1: The biggest question surrounding the once-popular new government
is whether Kan can really turn over a new leaf for the DPJ. In his
first policy speech to the Diet as prime minister, Kan sought to set
his administration apart from the previous one by vowing to build
“a strong economy, strong finances and strong social welfare”.
Kan stressed the need to jolt Japan out of its currently weak state,
which he attributed to “anaemic economic growth, ballooning
public debt and dwindling public trust in the viability of Japan's
social security system”.
Observers and practitioners believe that the government is unlikely
to announce any significant new policy initiatives, as Kan was
already one of the main architects behind the previous
administration’s economic policy, although some changes have just
been announced in the DPJ election manifesto for the Upper House
election. For instance it drops the promise of doubling monthly
child allowances to ¥26000 next year.
“I hope to carry over the torch of rebuilding Japan passed on to
me by Hatoyama”, he observed at a press conference after his
election. Alan Feldman, chief economist at Morgan Stanley in Japan,
says that “although Kan’s initial speech did include some new
elements, the main message was continuity with Hatoyama’s
economic policies. Investors are likely to welcome the innovations,
but to remain sceptical of the overall philosophy”.
However, economists believe Kan will face a mountain of challenges
both at home and abroad in the near future. First, he needs to
rebuild that political capital ahead of the upper house elections.
Public support for the DPJ has recovered sharply after his
appointment suggesting that voters have, for now, forgiven the
ruling Democrats for the previous leaders’ policy mistakes.
But it remains to be seen whether the initial popularity of the Kan
administration will translate into a strong performance, and whether
Kan will ultimately be given a strong enough mandate to push
through difficult policy decisions.
Major newspaper polls give Prime Minister approval ratings of
between 60 and 70 percent; but such ratings can be very fickle.
The election will be an uphill battle for the DPJ. The DPJ is without
one of its coalition partners, the Social Democratic Party who left
the ruling camp over Hatoyama’s failure to remove the US base
from Okinawa, as demanded by its leader, Mizuho Fukushima.
The two parties that remain, the DPJ and the People’s New Party,
hold 122 of the upper house’s 242 seats, the slimmest majority
possible. Should the coalition lose that majority in the coming
election, it would mean a split Diet — its majority would only
remain in the lower house. And that would make passing bills
extremely difficult.
Fisher Capital Management Report- Japan Elects a New Premier Part 1: Kan will have plenty on the economic front too. In terms of fiscal
policy, as a former Finance minister he has turned into a fiscal
conservative, having been a champion of funnelling revenue from
higher taxes toward government spending in order to achieve
economic growth. “Economic growth, fiscal reconstruction and
social welfare reform will be achieved together”, he told reporters.
(DPJ) historic lower house victory into office, Prime Minister Yukio
Hatoyama announced his resignation, having haphazardly frittered
away a chest brimming with political capital.
Major newspapers said that Hatoyama was resigning mainly for
two reasons: his failure to keep his promise to relocate the functions
of US Marine Corps Air Station Futenma, Okinawa, out of Okinawa
Prefecture, and a political funding scandal that included his mother’s
provision of some ¥1.26 billion to him over years.
Following Hatoyama’s resignation, Minister of Finance Naoto Kan
was elected as the new Prime Minister, the fifth in four years.
At his inaugural press conference Kan proposed a comprehensive
reconstruction of the economy, public finance, and social security
as his priority, in addition to reforming public administration, and
conducting responsible diplomatic and defence policy.
Fisher Capital Management Report- Japan Elects a New Premier Part 1: The biggest question surrounding the once-popular new government
is whether Kan can really turn over a new leaf for the DPJ. In his
first policy speech to the Diet as prime minister, Kan sought to set
his administration apart from the previous one by vowing to build
“a strong economy, strong finances and strong social welfare”.
Kan stressed the need to jolt Japan out of its currently weak state,
which he attributed to “anaemic economic growth, ballooning
public debt and dwindling public trust in the viability of Japan's
social security system”.
Observers and practitioners believe that the government is unlikely
to announce any significant new policy initiatives, as Kan was
already one of the main architects behind the previous
administration’s economic policy, although some changes have just
been announced in the DPJ election manifesto for the Upper House
election. For instance it drops the promise of doubling monthly
child allowances to ¥26000 next year.
“I hope to carry over the torch of rebuilding Japan passed on to
me by Hatoyama”, he observed at a press conference after his
election. Alan Feldman, chief economist at Morgan Stanley in Japan,
says that “although Kan’s initial speech did include some new
elements, the main message was continuity with Hatoyama’s
economic policies. Investors are likely to welcome the innovations,
but to remain sceptical of the overall philosophy”.
However, economists believe Kan will face a mountain of challenges
both at home and abroad in the near future. First, he needs to
rebuild that political capital ahead of the upper house elections.
Public support for the DPJ has recovered sharply after his
appointment suggesting that voters have, for now, forgiven the
ruling Democrats for the previous leaders’ policy mistakes.
But it remains to be seen whether the initial popularity of the Kan
administration will translate into a strong performance, and whether
Kan will ultimately be given a strong enough mandate to push
through difficult policy decisions.
Major newspaper polls give Prime Minister approval ratings of
between 60 and 70 percent; but such ratings can be very fickle.
The election will be an uphill battle for the DPJ. The DPJ is without
one of its coalition partners, the Social Democratic Party who left
the ruling camp over Hatoyama’s failure to remove the US base
from Okinawa, as demanded by its leader, Mizuho Fukushima.
The two parties that remain, the DPJ and the People’s New Party,
hold 122 of the upper house’s 242 seats, the slimmest majority
possible. Should the coalition lose that majority in the coming
election, it would mean a split Diet — its majority would only
remain in the lower house. And that would make passing bills
extremely difficult.
Fisher Capital Management Report- Japan Elects a New Premier Part 1: Kan will have plenty on the economic front too. In terms of fiscal
policy, as a former Finance minister he has turned into a fiscal
conservative, having been a champion of funnelling revenue from
higher taxes toward government spending in order to achieve
economic growth. “Economic growth, fiscal reconstruction and
social welfare reform will be achieved together”, he told reporters.
Boiler Room Equipment: HeatSponge SIDEKICK Eventually Exposed
Boiler Room Equipment, Inc, is very pleased to eventually introduce the SIDEKICK type of condensing boiler economizers for industrial and conventional warm water boilers. Fisher Capital on Boiler Room Equipment, Inc, - The Sidekick continues to be in advancement for almost a couple of years and shows an transformative growth of high-proficiency installations in the boiler market. The SIDEKICK is a warning game changer the likes of which have not been knowledgeable since the launch of the very first condensing boilers. The SIDEKICK provides the capability to combine condensing boiler efficiencies to conventional boilers on a new or retrofit basis. The SIDEKICK enables a person with a conventional boiler system the power to recognize condensing efficiency gains that normally would demand the existing boiler to be destroyed and changed with a brand new condensing boiler. Conventional, non-condensing boilers can now realize the efficiency benefits of outdoor air temperature reset controls and lower circulating hot water loop temperatures. Sidekicks also allow for duel fuel condensing applications utilizing conventional boilers. The SIDEKICK features all stainless internal construction, stainless tubes and fins, and an insulated outer casing. Inspection and clean out ports make periodic maintenance and cleaning easy.
The effectiveness of the SIDEKICK moves far beyond simply energy retrieval to the ultra-productive procedure by which it really is chosen and created. Temperature recovery for condensing purposes presents a substantial quantity of variables that creates a catalog-approach to products collection nearly impossible. Boilerroom Equipment has developed a new method of quantifying heat recovery, the Recovery Rate, and integrated this into the design. The development of the Recovery Rate variable permits a customer to customize the level of heat recovery and cost straight to the specifications of each particular application. We establish this fresh idea in heat recovery design as 3D Modularity, for modular construction in three dimensions. Based on a "Mass-Customization" approach to product development, Bruce will consider all of the application design constraints and will design a SIDEKICK enhanced to satisfy the exact overall performance needs at the most reasonably competitive selling price. Bruce has been given the ability to consider all aspects of the heat exchanger design relative to the price of the equipment and generate a fully priced proposal all in real-time; a software and engineering accomplishment that added over one thousand hours of coding and heat transfer modification to Bruce's core program. This means Bruce can handle all inquiries and generate proposals in real time by himself. The near elimination of sales and support overhead and significantly reduced project execution overhead requirements the Bruce software provides allows us to offer a product superior to any before it at pricing and responsiveness levels no conventional competitor could hope to match.
The effectiveness of the SIDEKICK moves far beyond simply energy retrieval to the ultra-productive procedure by which it really is chosen and created. Temperature recovery for condensing purposes presents a substantial quantity of variables that creates a catalog-approach to products collection nearly impossible. Boilerroom Equipment has developed a new method of quantifying heat recovery, the Recovery Rate, and integrated this into the design. The development of the Recovery Rate variable permits a customer to customize the level of heat recovery and cost straight to the specifications of each particular application. We establish this fresh idea in heat recovery design as 3D Modularity, for modular construction in three dimensions. Based on a "Mass-Customization" approach to product development, Bruce will consider all of the application design constraints and will design a SIDEKICK enhanced to satisfy the exact overall performance needs at the most reasonably competitive selling price. Bruce has been given the ability to consider all aspects of the heat exchanger design relative to the price of the equipment and generate a fully priced proposal all in real-time; a software and engineering accomplishment that added over one thousand hours of coding and heat transfer modification to Bruce's core program. This means Bruce can handle all inquiries and generate proposals in real time by himself. The near elimination of sales and support overhead and significantly reduced project execution overhead requirements the Bruce software provides allows us to offer a product superior to any before it at pricing and responsiveness levels no conventional competitor could hope to match.
Wednesday, April 27, 2011
Major Equity Markets 2010: Fisher Capital Management Part 2
The euro-zone economy improved much faster than expected in thesecond quarter of the year. Growth is estimated to have been around the 1% level, the fastest quarterly level for three years; and this has eased the fears about a move into a “double-dip” recession, at least for the moment. But it is a two-speed recovery, with the German economy estimated to have grown by 2.2% during the quarter, the Netherlands economy by 0.9%, and the French economy by 0.6%, but with Spain and Portugal basically unchanged and the Greek economy falling further into recession. With domestic demand weak, it is therefore essential that overseas demand remains buoyant if German exports are going to continue to drive the overall economy forward; but this is now very uncertain, and so growth projections for the rest of this year and for 2011 are still fairly cautious.
However the European Central Bank is maintaining its optimistic view of prospects. Speaking before the latest figures were announced, the chairman, Jean Claude Trichet, argued that the second quarter outturn would be better than expected, that there would also be an encouraging result in the third quarter, and that there was no prospect of a move into a “double-dip” recession.
He also defended the bank’s actions during the recession, suggested that the economy has responded well to those actions, and was anxious to ensure that “perhaps part of the credit could come to the central bank”.
There is an obvious risk that his comments will prove to be premature. Since the latest downgrade in Ireland’s credit rating has provided further evidence that the problems in the European banking system are far from resolved, and that the threat of sovereign debt defaults remains. It is not surprising therefore that markets have been unable to resist the downwards pressure despite the relatively good corporate results from European companies.
The UK market has also fallen sharply over the past month. The UK economy is currently performing better than expected, with consumer spending holding up well so far; and the markets are continuing to give the latest measures by the new UK government to reduce the fiscal deficit the benefit of the doubt. But there are fears that those austerity measures with have a significant effect on growth in the second half of the year, and into 2011, and that corporate activity will be badly affected. The mood amongst investors has therefore become much more cautious.
The latest news on the UK economy has been encouraging. The Office of National Statistics has recently estimated that retail sales volumes were 1.1% higher in July than in the previous month, and 1.3% higher than in July last year, the strongest monthly gain since February; unemployment remains much lower than might have been expected; the latest Purchasing Manager’s index for July confirms that manufacturing activity is continuing to expand; and exports also appear to strong.
There are weaknesses in the housing sector, and apparently some loss of momentum in the services sector, and bank lending remains low; but overall there are hopes that growth in the current quarter will be at reasonable levels. But there are already indications that the austerity measures announced by the government are beginning to have an effect on activity, and so the situation remains very uncertain.
This uncertainty is reflected in the minutes of the latest meeting of the Monetary Policy Committee of the Bank of England. They state that the economy is “on a knife-edge”, with “substantial risks” of a relapse balanced against signs of “gathering momentum” in the recovery. This uncertainty persuaded the majority of the members of the committee that policy should remain unchanged for the present; but the minutes indicated that “the risks were substantial, and that members stood ready to respond in either direction as the balance of risks evolved”. The subsequent Inflation Report from the bank was also a cautious document, with growth forecasts revised lower, primarily because of the expected effects of the austerity measures, and with the governor of the bank, Mervyn King, stressing the need for “continuing monetary stimulus” in the face of the “choppy recovery”. Interest rates are therefore likely to remain low for some considerable time, despite the fact that the inflation rate is well above the bank’s target rate, and so monetary policy will continue to be supportive. But will this be enough to justify the present market level? Global growing is slowing, and this will add to the downward pressures on the economy resulting from the austerity measures as they are introduced. The odds therefore seem to favour further UK market weakness in the near-term, even though we believe that the economic recovery will continue, and eventually lead to higher equity prices.
The Japanese market has also moved lower over the past month. Recent figures have shown that economic growth in Japan slowed very sharply in the second quarter of the year because of weak domestic demand and falling exports; and as a result China has replaced Japan as the world’s second largest economy for the first time. Growth is estimated to have been at a 0.4% annualised rate in the second quarter, after a 4.4% rate in the first three months of the year, and this has increased the fears that the country may once again be slipping back into recession. The dependence on exports has been an important adverse factor, as overseas markets have weakened, and this has encouraged speculation that the Bank of Japan will be forced to intervene in the currency markets to prevent further appreciation of the yen; but even this might not be enough to avoid a recession. In this situation, it is particularly unfortunate that an impasse exists at the political level that is making it extremely difficult for the government to take effective action. The background situation therefore remains very disappointing, and the weakness in the equity market looks set to continue.
Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.
However the European Central Bank is maintaining its optimistic view of prospects. Speaking before the latest figures were announced, the chairman, Jean Claude Trichet, argued that the second quarter outturn would be better than expected, that there would also be an encouraging result in the third quarter, and that there was no prospect of a move into a “double-dip” recession.
He also defended the bank’s actions during the recession, suggested that the economy has responded well to those actions, and was anxious to ensure that “perhaps part of the credit could come to the central bank”.
There is an obvious risk that his comments will prove to be premature. Since the latest downgrade in Ireland’s credit rating has provided further evidence that the problems in the European banking system are far from resolved, and that the threat of sovereign debt defaults remains. It is not surprising therefore that markets have been unable to resist the downwards pressure despite the relatively good corporate results from European companies.
The UK market has also fallen sharply over the past month. The UK economy is currently performing better than expected, with consumer spending holding up well so far; and the markets are continuing to give the latest measures by the new UK government to reduce the fiscal deficit the benefit of the doubt. But there are fears that those austerity measures with have a significant effect on growth in the second half of the year, and into 2011, and that corporate activity will be badly affected. The mood amongst investors has therefore become much more cautious.
The latest news on the UK economy has been encouraging. The Office of National Statistics has recently estimated that retail sales volumes were 1.1% higher in July than in the previous month, and 1.3% higher than in July last year, the strongest monthly gain since February; unemployment remains much lower than might have been expected; the latest Purchasing Manager’s index for July confirms that manufacturing activity is continuing to expand; and exports also appear to strong.
There are weaknesses in the housing sector, and apparently some loss of momentum in the services sector, and bank lending remains low; but overall there are hopes that growth in the current quarter will be at reasonable levels. But there are already indications that the austerity measures announced by the government are beginning to have an effect on activity, and so the situation remains very uncertain.
This uncertainty is reflected in the minutes of the latest meeting of the Monetary Policy Committee of the Bank of England. They state that the economy is “on a knife-edge”, with “substantial risks” of a relapse balanced against signs of “gathering momentum” in the recovery. This uncertainty persuaded the majority of the members of the committee that policy should remain unchanged for the present; but the minutes indicated that “the risks were substantial, and that members stood ready to respond in either direction as the balance of risks evolved”. The subsequent Inflation Report from the bank was also a cautious document, with growth forecasts revised lower, primarily because of the expected effects of the austerity measures, and with the governor of the bank, Mervyn King, stressing the need for “continuing monetary stimulus” in the face of the “choppy recovery”. Interest rates are therefore likely to remain low for some considerable time, despite the fact that the inflation rate is well above the bank’s target rate, and so monetary policy will continue to be supportive. But will this be enough to justify the present market level? Global growing is slowing, and this will add to the downward pressures on the economy resulting from the austerity measures as they are introduced. The odds therefore seem to favour further UK market weakness in the near-term, even though we believe that the economic recovery will continue, and eventually lead to higher equity prices.
The Japanese market has also moved lower over the past month. Recent figures have shown that economic growth in Japan slowed very sharply in the second quarter of the year because of weak domestic demand and falling exports; and as a result China has replaced Japan as the world’s second largest economy for the first time. Growth is estimated to have been at a 0.4% annualised rate in the second quarter, after a 4.4% rate in the first three months of the year, and this has increased the fears that the country may once again be slipping back into recession. The dependence on exports has been an important adverse factor, as overseas markets have weakened, and this has encouraged speculation that the Bank of Japan will be forced to intervene in the currency markets to prevent further appreciation of the yen; but even this might not be enough to avoid a recession. In this situation, it is particularly unfortunate that an impasse exists at the political level that is making it extremely difficult for the government to take effective action. The background situation therefore remains very disappointing, and the weakness in the equity market looks set to continue.
Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.
Major Equity Markets 2010: Fisher Capital Management Part 1
Sentiment in the equity markets has been steady over the past month. Markets in Europe have been unable to resist downward pressure. The Japanese market is also lower; but there has been resistance amongst the emerging markets in South East Asia that are supported by more favourable economic conditions.
The Chinese authorities are obviously determined to prevent their economy from overheating. The global recovery will therefore only proceed at a very slow pace, and there may well be setbacks along the way, although a move into a “double-dip” recession still seems unlikely. There is also an increased danger of a sovereign debt default by Greece, and possibly even by Ireland. But the swing in sentiment should not go too far. So long as monetary policy remains supportive, the global economic recovery is likely to continue, and this will eventually produce a sustainable improvement in equity prices. Patience will therefore be the most important requirement amongst investors until some of the uncertainties have been resolved.
The Fed is in a very difficult position. The statement after its latest OMC meeting was cautious about economic prospects, conceding that “the pace of recovery in output and in employment has slowed in recent months” and was likely to be “more modest” than anticipated in the near-term. But monetary policy was left basically unchanged at the meeting, perhaps because of the “unusual uncertainty” about prospects, and this caused some disappointment. However there is little doubt that further monetary easing will be introduced if the position continues to deteriorate, because the bank’s main priority is to try to maintain some momentum in the economy. And fiscal policy is also likely to remain supportive, despite the massive size of the existing deficit. Congress has been reluctant to authorise additional spending programmes; but there is intense political pressure ahead of the elections in November, and further programmes seem likely.
The critical question for investors therefore is whether the continued monetary and fiscal support will be enough. They have been prepared to adopt a bullish attitude to the situation, and this mood has been helped by an encouraging flow of corporate earnings results that have often exceeded expectations, and confirmed that the corporate sector has been coping well so far with a difficult situation.
The gloom should not be overdone. So long as monetary policy remains supportive, we believe that the odds favour the continuation of the slow recovery, and that this will eventually produce better market conditions.
Mainland European markets have fallen back sharply over the past month, after the strong rally. There has been evidence of a further improvement in the economic background in the euro-zone, and second quarter corporate results have generally been encouraging; but the signs of weakness in the US economy and the slowdown in China has raised doubts about whether the German export performance that has been providing most of the momentum for the recovery can be maintained; and there have also been renewed concerns about the possibility of debt defaults amongst the weaker member countries of the zone. The markets have therefore been unable to resist downward pressure.
The euro-zone economy improved much faster than expected in the second quarter of the year. Growth is estimated to have been around the 1% level, the fastest quarterly level for three years; and this has eased the fears about a move into a “double-dip” recession, at least for the moment. But it is a two-speed recovery, with the German economy estimated to have grown by 2.2% during the quarter, the Netherlands economy by 0.9%, and the French economy by 0.6%, but with Spain and Portugal basically unchanged and the Greek economy falling further into recession. With domestic demand weak, it is therefore essential that overseas demand remains buoyant if German exports are going to continue to drive the overall economy forward; but this is now very uncertain, and so growth projections for the rest of this year and for 2011 are still fairly cautious.
However the European Central Bank is maintaining its optimistic view of prospects. Speaking before the latest figures were announced, the chairman, Jean Claude Trichet, argued that the second quarter outturn would be better than expected, that there would also be an encouraging result in the third quarter, and that there was no prospect of a move into a “double-dip” recession.
Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.
The Chinese authorities are obviously determined to prevent their economy from overheating. The global recovery will therefore only proceed at a very slow pace, and there may well be setbacks along the way, although a move into a “double-dip” recession still seems unlikely. There is also an increased danger of a sovereign debt default by Greece, and possibly even by Ireland. But the swing in sentiment should not go too far. So long as monetary policy remains supportive, the global economic recovery is likely to continue, and this will eventually produce a sustainable improvement in equity prices. Patience will therefore be the most important requirement amongst investors until some of the uncertainties have been resolved.
The Fed is in a very difficult position. The statement after its latest OMC meeting was cautious about economic prospects, conceding that “the pace of recovery in output and in employment has slowed in recent months” and was likely to be “more modest” than anticipated in the near-term. But monetary policy was left basically unchanged at the meeting, perhaps because of the “unusual uncertainty” about prospects, and this caused some disappointment. However there is little doubt that further monetary easing will be introduced if the position continues to deteriorate, because the bank’s main priority is to try to maintain some momentum in the economy. And fiscal policy is also likely to remain supportive, despite the massive size of the existing deficit. Congress has been reluctant to authorise additional spending programmes; but there is intense political pressure ahead of the elections in November, and further programmes seem likely.
The critical question for investors therefore is whether the continued monetary and fiscal support will be enough. They have been prepared to adopt a bullish attitude to the situation, and this mood has been helped by an encouraging flow of corporate earnings results that have often exceeded expectations, and confirmed that the corporate sector has been coping well so far with a difficult situation.
The gloom should not be overdone. So long as monetary policy remains supportive, we believe that the odds favour the continuation of the slow recovery, and that this will eventually produce better market conditions.
Mainland European markets have fallen back sharply over the past month, after the strong rally. There has been evidence of a further improvement in the economic background in the euro-zone, and second quarter corporate results have generally been encouraging; but the signs of weakness in the US economy and the slowdown in China has raised doubts about whether the German export performance that has been providing most of the momentum for the recovery can be maintained; and there have also been renewed concerns about the possibility of debt defaults amongst the weaker member countries of the zone. The markets have therefore been unable to resist downward pressure.
The euro-zone economy improved much faster than expected in the second quarter of the year. Growth is estimated to have been around the 1% level, the fastest quarterly level for three years; and this has eased the fears about a move into a “double-dip” recession, at least for the moment. But it is a two-speed recovery, with the German economy estimated to have grown by 2.2% during the quarter, the Netherlands economy by 0.9%, and the French economy by 0.6%, but with Spain and Portugal basically unchanged and the Greek economy falling further into recession. With domestic demand weak, it is therefore essential that overseas demand remains buoyant if German exports are going to continue to drive the overall economy forward; but this is now very uncertain, and so growth projections for the rest of this year and for 2011 are still fairly cautious.
However the European Central Bank is maintaining its optimistic view of prospects. Speaking before the latest figures were announced, the chairman, Jean Claude Trichet, argued that the second quarter outturn would be better than expected, that there would also be an encouraging result in the third quarter, and that there was no prospect of a move into a “double-dip” recession.
Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.
New Commercial Boilers Presented - Triad Boiler Room Systems by Fisher Capital
Fisher Capital on Boiler Room Equipment, Inc: Triad Boiler Systems creates distinctively tough small-footprint hot water boilers, steam boilers, and radiant heating systems.
All of our boilers use 12 gauge firetubes in compact vessels that suit through very small doorways! Inputs range up to 2,000,000 BTU's. Create a highly efficient system with millions of BTU's by sequencing a string of these modular vessels.
TRIAD's commercial boilers and industrial grade Hot Water Heating, Domestic Hot Water, and Steam boilers are used in a wide variety of applications. Our commercial boilers are used at schools, universities, apartments, hospitals, office buildings, retirement communities, and churches. Industrial uses have included bakeries, smelting operations, food processing, quenching systems, and various heating applications for manufacturing. Triads’ modular boilers and radiant heating systems can be natural gas fired, oil fired, or dual fuel fired. For simplicity of operation and maintenance, all controls on our boilers are well known, off-the-shelf products. There area no proprietary parts on these boilers! This simplicity of operation is part of our philosophy, and an important reason why our customers return to us again and again.
TRIAD has been manufacturing high-quality boilers since 1926, and developed the modular boiler concept with primary/secondary piping, receiving a patent for it in 1967. We put this experience, knowledge, and expertise into every boiler.
We believe in quality - it is the overriding characteristic driving our company. This is why we manufacture extremely rugged, well-designed hot water and steam boilers that can provide decades of dependable service. We welcome your inquiries.
Benefits of Modularity
TRIAD's elegantly simple design maintains consistent water volume where heat is required.
• Boilers are activated sequentially, drawing water from the main loop into the next hot water boiler until the heating need is meet.
• firing boilers remaining isolated, so no heated water circulates through cold boilers.
• During most of the year the unfired boilers provide additional backup.
• Outdoor temperatures and loop water temperatures are constantly monitored.
Fisher Capital on Boiler Room Equipment, Inc: The efficiency of this design is most apparent during warmer months, when a conventional hydronic heating or steam boiler could still be operating at full capacity.
Primary-Secondary Piping - TRIAD integrates modularity with a single pipe primary-secondary system. TRIAD was the first company to employ a Primary-Secondary concept. It operates with two loops, (i) the primary loop, or building main loop, and (ii) smaller secondary loops off of each hot water boiler, which supply heated water to the primary loop.
Upon a call for heat, the boiler pump begins pushing the return water into the boiler and out through the secondary loop, supplying this hot water up into the primary loop (the main header), where it mixes with the cooler return water from the main loop of the building.
• Supply and return water are blended, avoiding the need for expensive and unreliable mixing valves commonly used in two pipe systems.
• The secondary loop isolates each hot water boiler, resulting in a very efficient system that minimizes thermal shock.
Control Panel
TRIAD Boilers can be sequenced by the use of our control panel that provides many attractive features:
• Temperature set-back when less heat is required, such as nights and weekends.
• Adjustments for latent heat, to take advantage of hot boiler water that retains heat after the burner shuts down.
• Outdoor reset based on atmospheric temperatures.
• Monitoring of return water temperatures to maintain accurate heating output.
It is also very easy to sequence our boilers using the panel of any other major manufacturer.
Packaged Product - Fisher Capital on Boiler Room Equipment, Inc: All TRIAD hot water boilers and steam boilers are fully assembled, packaged products, which offer several advantages over boilers that must be assembled at the jobsite
• Onsite labor costs are minimized.
• Quality control is higher at the factory than at the jobsite
• The ease of installation of a packaged boiler allows for quicker start up.
Benefits of Steel Boilers
Easy to Clean - To maintain boiler efficiency, heating surfaces must be kept clean and free of combustion by-products. All TRIAD heating surfaces, especially the firetubes, are easy to access. It is impossible to clean all the heating surfaces of a cast iron boiler, and what can be reached is difficult to clean.
TRIAD also makes it easy to maintain clean water surfaces. The cleaning of the interior of a cast iron boiler is a major undertaking, and even then only the vertical surfaces can be cleaned. The inability to clean the horizontal surfaces can have a significant impact on operating efficiency.
Easy to Repair - Because of their steel construction, TRIAD hot water and steam boilers can be repaired in the field with minimal disruption. A leak can be permanently welded or the tubes re-rolled with little difficulty. It is impossible to permanently weld a cracked cast iron boiler section or a leaking copper fin-tube boiler. The firetubes are easily accessed through the top and through the firedoor.
Fast Water Circulation - Poor circulation of water within the typical cast iron boiler is very common due to their design limits, while TRIAD's steel hot water boilers provide for faster circulation.
All of our boilers use 12 gauge firetubes in compact vessels that suit through very small doorways! Inputs range up to 2,000,000 BTU's. Create a highly efficient system with millions of BTU's by sequencing a string of these modular vessels.
TRIAD's commercial boilers and industrial grade Hot Water Heating, Domestic Hot Water, and Steam boilers are used in a wide variety of applications. Our commercial boilers are used at schools, universities, apartments, hospitals, office buildings, retirement communities, and churches. Industrial uses have included bakeries, smelting operations, food processing, quenching systems, and various heating applications for manufacturing. Triads’ modular boilers and radiant heating systems can be natural gas fired, oil fired, or dual fuel fired. For simplicity of operation and maintenance, all controls on our boilers are well known, off-the-shelf products. There area no proprietary parts on these boilers! This simplicity of operation is part of our philosophy, and an important reason why our customers return to us again and again.
TRIAD has been manufacturing high-quality boilers since 1926, and developed the modular boiler concept with primary/secondary piping, receiving a patent for it in 1967. We put this experience, knowledge, and expertise into every boiler.
We believe in quality - it is the overriding characteristic driving our company. This is why we manufacture extremely rugged, well-designed hot water and steam boilers that can provide decades of dependable service. We welcome your inquiries.
Benefits of Modularity
TRIAD's elegantly simple design maintains consistent water volume where heat is required.
• Boilers are activated sequentially, drawing water from the main loop into the next hot water boiler until the heating need is meet.
• firing boilers remaining isolated, so no heated water circulates through cold boilers.
• During most of the year the unfired boilers provide additional backup.
• Outdoor temperatures and loop water temperatures are constantly monitored.
Fisher Capital on Boiler Room Equipment, Inc: The efficiency of this design is most apparent during warmer months, when a conventional hydronic heating or steam boiler could still be operating at full capacity.
Primary-Secondary Piping - TRIAD integrates modularity with a single pipe primary-secondary system. TRIAD was the first company to employ a Primary-Secondary concept. It operates with two loops, (i) the primary loop, or building main loop, and (ii) smaller secondary loops off of each hot water boiler, which supply heated water to the primary loop.
Upon a call for heat, the boiler pump begins pushing the return water into the boiler and out through the secondary loop, supplying this hot water up into the primary loop (the main header), where it mixes with the cooler return water from the main loop of the building.
• Supply and return water are blended, avoiding the need for expensive and unreliable mixing valves commonly used in two pipe systems.
• The secondary loop isolates each hot water boiler, resulting in a very efficient system that minimizes thermal shock.
Control Panel
TRIAD Boilers can be sequenced by the use of our control panel that provides many attractive features:
• Temperature set-back when less heat is required, such as nights and weekends.
• Adjustments for latent heat, to take advantage of hot boiler water that retains heat after the burner shuts down.
• Outdoor reset based on atmospheric temperatures.
• Monitoring of return water temperatures to maintain accurate heating output.
It is also very easy to sequence our boilers using the panel of any other major manufacturer.
Packaged Product - Fisher Capital on Boiler Room Equipment, Inc: All TRIAD hot water boilers and steam boilers are fully assembled, packaged products, which offer several advantages over boilers that must be assembled at the jobsite
• Onsite labor costs are minimized.
• Quality control is higher at the factory than at the jobsite
• The ease of installation of a packaged boiler allows for quicker start up.
Benefits of Steel Boilers
Easy to Clean - To maintain boiler efficiency, heating surfaces must be kept clean and free of combustion by-products. All TRIAD heating surfaces, especially the firetubes, are easy to access. It is impossible to clean all the heating surfaces of a cast iron boiler, and what can be reached is difficult to clean.
TRIAD also makes it easy to maintain clean water surfaces. The cleaning of the interior of a cast iron boiler is a major undertaking, and even then only the vertical surfaces can be cleaned. The inability to clean the horizontal surfaces can have a significant impact on operating efficiency.
Easy to Repair - Because of their steel construction, TRIAD hot water and steam boilers can be repaired in the field with minimal disruption. A leak can be permanently welded or the tubes re-rolled with little difficulty. It is impossible to permanently weld a cracked cast iron boiler section or a leaking copper fin-tube boiler. The firetubes are easily accessed through the top and through the firedoor.
Fast Water Circulation - Poor circulation of water within the typical cast iron boiler is very common due to their design limits, while TRIAD's steel hot water boilers provide for faster circulation.
Monday, April 18, 2011
Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning
The share market has come down hard on Fisher & Paykel Appliances - with its shares falling 40 per cent after the company issued a profit warning today.
The whiteware manufacturer's shares, which were worth $2.94 this time last year and worth $1 on Friday, went into free fall and are currently trading at just 60 cents, a 40 cent fall.
Earlier today the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year.
Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January. It was predicted to be $570m by the end of March.
It is now looking at reviewing its capital structure and alternative sources of capital.
Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning - The market was very concerned the company had to come back with a capital raising, which was unexpected, said Hamilton, Hindin, Greene director Grant Williamson.
The home appliance market had dropped off in all areas Fisher & Paykel exported to and there did not appear to be too many signs of a turnaround in world housing at the moment, he said.
"I think investors are starting to say; how long is it going to be before conditions change for the company? I think that's the biggest concern."
Williamson said Fisher & Paykel Appliances' wares were sold into most new homes but when very few new homes being built it would have a serious effect on their sales.
A 40 per cent drop in share value was a big hit for the share price to take but that was the general state of the market.
"If any company disappoints the market then the market is very harsh on their share price and we have certainly seen that this morning with Fisher & Paykel Appliances."
The company announced it would not proceed with a capital note issue and was looking an alternative source of capital.
The directors were considering the merits of issuing equity, including to a cornerstone investor.
Williamson said he did not believe a capital notes raising would have been particularly well received.
He did not see any short term bounce in the price until there was clarification around the structure of equity raising. That was expected to be announced in early March.
"At the moment there's still a fair degree of selling in the market place, around the 60c level."- NZPA
The whiteware manufacturer's shares, which were worth $2.94 this time last year and worth $1 on Friday, went into free fall and are currently trading at just 60 cents, a 40 cent fall.
Earlier today the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year.
Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January. It was predicted to be $570m by the end of March.
It is now looking at reviewing its capital structure and alternative sources of capital.
Fisher Capital Equipment Update - Market slams Fisher and Paykel on profit Warning - The market was very concerned the company had to come back with a capital raising, which was unexpected, said Hamilton, Hindin, Greene director Grant Williamson.
The home appliance market had dropped off in all areas Fisher & Paykel exported to and there did not appear to be too many signs of a turnaround in world housing at the moment, he said.
"I think investors are starting to say; how long is it going to be before conditions change for the company? I think that's the biggest concern."
Williamson said Fisher & Paykel Appliances' wares were sold into most new homes but when very few new homes being built it would have a serious effect on their sales.
A 40 per cent drop in share value was a big hit for the share price to take but that was the general state of the market.
"If any company disappoints the market then the market is very harsh on their share price and we have certainly seen that this morning with Fisher & Paykel Appliances."
The company announced it would not proceed with a capital note issue and was looking an alternative source of capital.
The directors were considering the merits of issuing equity, including to a cornerstone investor.
Williamson said he did not believe a capital notes raising would have been particularly well received.
He did not see any short term bounce in the price until there was clarification around the structure of equity raising. That was expected to be announced in early March.
"At the moment there's still a fair degree of selling in the market place, around the 60c level."- NZPA
Fisher Capital Management Report Part 2 - The UK Emergency Budget
Fisher Capital Management Report Part 2- The UK has had an emergency budget and it could have been much
worse. The heavy lifting is being done by a rise in VAT bringing in
£13 billion. On the spending side the cuts are achieved by freezing
public sector pay, indexing state benefits to the CPI rather than the
faster-rising RPI and freezing child benefits. State pensions will be
indexed to the higher of wages or the CPI but the pension age will
be raised to 66 fairly soon.
Interest rates are projected to remain low, with inflation absent;
and it is possible that Quantitative Easing will need to be resumed
but on present prospects this seems unlikely to be necessary.
Another concern is with the regulative proposals. There is an antibank
mentality developing in this coalition government, which is
most unfortunate; much of it seems to emanate from Vince Cable
and the Lib Dems.
Yet a moment’s thought should be enough to convince one that we
need bank credit expansion and a return to competition on the
bank high street in order to foster recovery and enterprise. Ever
tougher bank regulation is what was needed before, at the peak of
expansion, not now in the slough of recession giving way to recovery.
Talk of breaking up banks fails to recognise the natural economics
of banks, which favours scale and risk-spreading. Talk of capping
mortgage lending at modest percentages of income is also unfortunate
when the UK want to see a revival of it’s housing market, now once
again back in the doldrums.
A last area of concern is the state of the labour market. The UK do
have near ‘full employment’ if one discounts the modest temporary
effect of recession. But this only applies to those normally looking
for work.
Fisher Capital Management Report Part 2 - The UK Emergency Budget: There is now a large group of people who are claiming benefits of
various sorts in order to stay out of the labour market. Disability
benefit is one route; another is the having of children in order to
get child benefits and related parenting allowances, with tragic
consequences for some children.
Tightening up of this has been signalled in the budget but this has
happened before, with no proper follow-through.
Another UK labour market problem is the resurgence of union
power as Labour loosened the union laws passed before 1997. One
key loosening was the 12-week rule, which allows workers to breach
their contracts with impunity when on strike until 12 weeks of
strike have occurred. When strikes are designed for short periods
for maximum disruption, this 12 week period can take a long time
to trigger. During it the employing firm is unable to defend itself
by recruiting a different labour force.
Under the pre-1997 legislation firms were able to dismiss workers
in breach of contract, provided they did so in a non-discriminatory
way. This led to a huge reduction in strikes and a large rise in UK
productivity, to the great general benefit.
As we have seen in recent years, certain unions are exploiting this
12-week rule to damage the economy — the classic case has been
the BA dispute where UNITE has persisted in attempting to defend
well-above market wages for cabin crew.
In sum the budget was a decent start in restoring fiscal sanity. But
only a start.
The UK now needs urgent attention to the creation of a proper tax
system with low marginal rates but generating a reliable revenue
source — the two are perfectly compatible. It needs sense and
restraint in regulation. Finally they need to reform their labour
market yet again.
worse. The heavy lifting is being done by a rise in VAT bringing in
£13 billion. On the spending side the cuts are achieved by freezing
public sector pay, indexing state benefits to the CPI rather than the
faster-rising RPI and freezing child benefits. State pensions will be
indexed to the higher of wages or the CPI but the pension age will
be raised to 66 fairly soon.
Interest rates are projected to remain low, with inflation absent;
and it is possible that Quantitative Easing will need to be resumed
but on present prospects this seems unlikely to be necessary.
Another concern is with the regulative proposals. There is an antibank
mentality developing in this coalition government, which is
most unfortunate; much of it seems to emanate from Vince Cable
and the Lib Dems.
Yet a moment’s thought should be enough to convince one that we
need bank credit expansion and a return to competition on the
bank high street in order to foster recovery and enterprise. Ever
tougher bank regulation is what was needed before, at the peak of
expansion, not now in the slough of recession giving way to recovery.
Talk of breaking up banks fails to recognise the natural economics
of banks, which favours scale and risk-spreading. Talk of capping
mortgage lending at modest percentages of income is also unfortunate
when the UK want to see a revival of it’s housing market, now once
again back in the doldrums.
A last area of concern is the state of the labour market. The UK do
have near ‘full employment’ if one discounts the modest temporary
effect of recession. But this only applies to those normally looking
for work.
Fisher Capital Management Report Part 2 - The UK Emergency Budget: There is now a large group of people who are claiming benefits of
various sorts in order to stay out of the labour market. Disability
benefit is one route; another is the having of children in order to
get child benefits and related parenting allowances, with tragic
consequences for some children.
Tightening up of this has been signalled in the budget but this has
happened before, with no proper follow-through.
Another UK labour market problem is the resurgence of union
power as Labour loosened the union laws passed before 1997. One
key loosening was the 12-week rule, which allows workers to breach
their contracts with impunity when on strike until 12 weeks of
strike have occurred. When strikes are designed for short periods
for maximum disruption, this 12 week period can take a long time
to trigger. During it the employing firm is unable to defend itself
by recruiting a different labour force.
Under the pre-1997 legislation firms were able to dismiss workers
in breach of contract, provided they did so in a non-discriminatory
way. This led to a huge reduction in strikes and a large rise in UK
productivity, to the great general benefit.
As we have seen in recent years, certain unions are exploiting this
12-week rule to damage the economy — the classic case has been
the BA dispute where UNITE has persisted in attempting to defend
well-above market wages for cabin crew.
In sum the budget was a decent start in restoring fiscal sanity. But
only a start.
The UK now needs urgent attention to the creation of a proper tax
system with low marginal rates but generating a reliable revenue
source — the two are perfectly compatible. It needs sense and
restraint in regulation. Finally they need to reform their labour
market yet again.
GOLD Business Advertising Associate Unilux State-of-the-art Production: The Boiler Room
Unilux is the country’s first 5 pass forced draft bent tube boiler with absolutely no room for inaccuracy. With more than thirty many years of producing and functional expertise in almost every business requiring boilers, Unilux holds solely as being the most excellent, remarkably designed, best high quality boiler in it’s course. While the product speaks volumes, our success is our people; many with over 25 years at Unilux, we take substantial pride in every unit we manufacture. From immediate response to inquiries, performance data, drawings, product description and assistance with proper selection, everyone at Unilux has one important goal in mind…customer satisfaction. Unilux QA/QC boasts a stringent, internal program that emphasizes employee responsibility to safety, product and quality performance.
Richard Fisher from the Boiler Room: Unilux Innovative Development - Building for all Unilux boilers starts with the vessel. All vessel material is controlled, ASME compliant material. Generous upper and lower drums are joined with large, external downcomer(s) allowing for maximum internal circulation. Tubes are a minimum 1.5” diameter, SA 178 Grade “A” material. Tube sizes up to 2.5” diameter are used for larger boilers. The Unilux housing is the most rigid available. Individual steel panels are manufactured with 11 gauge steel and reinforced by bending and welded stiffeners throughout. Refractory design is exclusive to Unilux. We utilize a three tier pour of different tolerance refractory for ultimate performance. All Unilux refractory is warranted for 5 years as standard. Finished insulated jacket panels are scratch resistant, polyester impregnated powder coat. Thermal losses from housing and jacket are 0.5 percent. The completed enclosure allows for up to +5” water column gas side pressure. All Unilux boilers are available with fuel burning equipment and control systems as desired.
Safety is extremely important at Unilux. Every Unilux boiler continues to be engineered to become the most secure, most effective merchandise obtainable in its class.
At Unilux Boiler Corp., we engineer and manufacture bent water tube boilers of only the finest quality, built by experienced craftsmen and backed by a service history that is second to none. When others decline custom engineered projects, Unilux embraces the challenge with experienced, thought provoking ideas and the ability to assist engineers, contractors and end users with the most efficient, long lasting solutions to effectively meet their needs.
Richard Fisher from the Boiler Room: Unilux Innovative Development - Building for all Unilux boilers starts with the vessel. All vessel material is controlled, ASME compliant material. Generous upper and lower drums are joined with large, external downcomer(s) allowing for maximum internal circulation. Tubes are a minimum 1.5” diameter, SA 178 Grade “A” material. Tube sizes up to 2.5” diameter are used for larger boilers. The Unilux housing is the most rigid available. Individual steel panels are manufactured with 11 gauge steel and reinforced by bending and welded stiffeners throughout. Refractory design is exclusive to Unilux. We utilize a three tier pour of different tolerance refractory for ultimate performance. All Unilux refractory is warranted for 5 years as standard. Finished insulated jacket panels are scratch resistant, polyester impregnated powder coat. Thermal losses from housing and jacket are 0.5 percent. The completed enclosure allows for up to +5” water column gas side pressure. All Unilux boilers are available with fuel burning equipment and control systems as desired.
Safety is extremely important at Unilux. Every Unilux boiler continues to be engineered to become the most secure, most effective merchandise obtainable in its class.
At Unilux Boiler Corp., we engineer and manufacture bent water tube boilers of only the finest quality, built by experienced craftsmen and backed by a service history that is second to none. When others decline custom engineered projects, Unilux embraces the challenge with experienced, thought provoking ideas and the ability to assist engineers, contractors and end users with the most efficient, long lasting solutions to effectively meet their needs.
Fisher Capital Management Investment Solutions: The American way?
http://www.investmentnews.com/
By Jessica Toonkel
April 11, 2011
In a recent interview, American Funds Distributor’s president Kevin Clifford reportedly blamed the recent fund outflows at American on pollyanna-ish sales pitches at the retail level. Not surprisingly, those working at the retail level — namely, advisers — did not take kindly to the suggestion.
http://www.investmentnews.com/article/20110411/BLOG03/110419995
Did American Funds’ exec diss advisers?
Clifford reportedly pinned fund firm’s recent outflows on pollyanna-ish sales pitches
By Jessica Toonkel
April 11, 2011 2:59 pm ET
American Funds appears to have bitten the hand that feeds it.
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In a rare interview with Barron’s published last weekend, Kevin Clifford, president of American Funds Distributors Inc., is quoted as blaming advisers for the huge outflows the firm has seen since the most recent market meltdown.
In the article, Mr. Clifford is quoted as saying that advisers were characterizing American’s funds as “able to defy gravity,” based on their strong returns after the dot-com crash. He described the hawking as “foolish.”
American Funds suffered $50 billion in outflows in 2010 and so far this year has seen another $14.79 billion go out the door, according to Morningstar Inc. (See a recent list of the ‘The 5 fund families with the largest outflows’.)
Industry observers advisers said they were surprised to see American Funds point the finger at them for the outflows at the giant fund firm.
“The comments were just jaw dropping,” said Don Phillips, director of research at Morningstar Inc. “To lay blame on the people who sell their funds is astonishing, and you have to think, rather foolish.”
Advisers were equally unimpressed by the comments.
“Advisers were overselling the funds because they were over-marketing them,” said Steve Johnson, an adviser with Raymond James Financial Services Inc., who uses American Funds selectively. “Their wholesalers were out there beating you up on how cheap their funds were and how consistent the track records were.”
American Funds needs to take some responsibility for setting expectations, said Kevin McDevitt, an analyst at Morningstar. “You have to wonder what the wholesalers were telling advisers,” he said.
Some advisers were shocked to see an American Funds executive point the finger at advisers so directly, even if what he was saying was accurate. “I think it’s hysterical that he is questioning advisers,” said Rich Zito, an adviser with Flynn Zito Capital Management LLC. “It’s like, ‘Let me beat up on my customers.’”
American Funds contends that Mr. Clifford’s comments were taken out of context. “Kevin Clifford absolutely did not blame advisers,” said Chuck Freadhoff, a spokesman. “I am not saying that the reporter misquoted him, but there was a miscommunication.”
Mr. Freadhoff said that the number of advisers selling American Funds doubled from 100,000 to 200,000 between 1999 and 2006. Many of American Funds’ offerings did well during the dot-com bust, he said, and thus many new advisers invested with the firm, believing that the funds would be able to maintain that level of outperformance.
“Many advisers believed we would hold up much better in a downturn, but in 2008, many of our funds didn’t do that,” he said.
American Funds has reached out to its wholesalers and adviser-facing employees about the miscommunication so that they can address any questions or concerns from advisers stemming from the Barron’s article.
“We have provided them with the full context of what Kevin said and prepared them to answer any questions,” Mr. Freadhoff said. “Our entire business model is built around the value of advice.”
But Mr. Phillips believes the remarks are emblematic of Capital Research & Management’s culture. “They are not experienced with talking to the press and they need to be,” he said. “They are a massive manager of money.”
Fisher Capital Management Investment Solutions: For investment banks in Q1, underwriting was it
http://www.reuters.com/article/2011/04/12/us-investmentbank-idUSTRE73B3EB20110412
By Lauren Tara LaCapra
NEW YORK | Tue Apr 12, 2011 9:59am EDT
(Reuters) – U.S. stock underwriting was the sole strong business in an otherwise bleak first quarter for U.S. investment banks.
Both Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) are expected to report lower first-quarter earnings next week compared with the same quarter a year ago.
Revenue from trading, merger advisory and bond underwriting is expected to be weak as markets were choppy, relatively few mergers closed, and debt issuance declined relative to exceptionally strong levels a year ago.
Unfortunately for investment banks, stock underwriting is too small a business to make up for weakness in all these other areas.
Longer term, banks face other pressures, too. Trading profit could be crimped in the future as more markets move to exchanges and clearinghouses. And new rules will limit banks’ ability to make bets with their own funds.
“The greatest strategic challenge facing Goldman Sachs and Morgan Stanley,” says Bernstein analyst Brad Hintz, “is the uncertainty of new regulations.”
But in the first quarter, banks did well with stock underwriting, thanks in part to massive initial public offerings from private equity firms looking to cash out of companies they bought before the financial crisis.
In the first three months of the year, companies issued $196.3 billion of stock globally, the best first quarter for equity issuance on record, according to Thomson Reuters data. Issuance volume rose 15 percent from a year earlier, and fees for underwriting increased 12 percent to $6.1 billion.
That helps banks, but only so much — the stock underwriting business delivered just 7 percent of overall revenue for Goldman Sachs last year, and Goldman was the biggest underwriter. The business was even less substantial for Morgan Stanley, whose equity underwriting revenue comprised just 4.6 percent of its total revenue for 2010.
OTHER BUSINESSES SUFFERING
Stock underwriting could end up being a material part of earnings in the first quarter just because so many other businesses were relatively weak. Goldman raked in an estimated $491 million of fees from stock underwriting, Thomson Reuters data show, up 41 percent from a year earlier.
Analysts on average expect Goldman to report first-quarter net income of $459.5 million, or 81 cents per share, according to Thomson Reuters I/B/E/S. Even without a charge of $2.80 per share to buy back Goldman preferred stock from Warren Buffett’s Berkshire Hathaway, that’s well below earnings of $5.59 per share in the year-ago period. Goldman is slated to report results on Tuesday, April 19.
Morgan Stanley, scheduled to post results on Thursday, April 21, will see a boost from its role as lead underwriter for the conversion of $59 billion worth of American International Group Inc (AIG.N) preferred stock into common shares.
Results for both investment banks could be even worse than analysts expect. Sell-side researchers with the best track records are forecasting results for Morgan Stanley that are 22 percent below analysts’ average estimate, and 0.2 percent below for Goldman Sachs, according to Thomson Reuters Starmine Smart Estimates.
A key factor for Morgan Stanley will be how well its Morgan Stanley Smith Barney joint venture with Citigroup Inc (C.N) performed during the quarter. Morgan Stanley Chief Executive James Gorman has staked the future of the bank on that wealth management business in a way that none of his rivals have.
Morgan Stanley’s global wealth management division delivered $1.2 billion in pre-tax income last year, more than double the amount in 2009, and some investors are hopeful the business will continue to be a stable source of revenue.
JPMorgan Chase & Co (JPM.N) garnered the most fees of any investment bank in the first quarter thanks to its advisory role in several key deals and its dominance in the high-yield debt market.
JPMorgan collected $1.4 billion in investment banking fees, or 6.2 percent of the industry total. It reported impressive results as other banks struggled to dodge unexpected interest rate moves.
JPMorgan is scheduled to report quarterly results on Wednesday, April 13.
(Reporting by Lauren Tara LaCapra; editing by John Wallace)
Fisher Capital Management Investment Solutions: Alliance Trust defends investment strategy
http://www.bbc.co.uk/news/uk-scotland-scotland-business-13057133
12 April 2011 Last updated at 16:33 ET
Money
The group’s profits before tax, including capital, were down from £473m to £456m
A Dundee-based investment trust has issued a defence of its strategy with its annual results.
Alliance Trust reported its return to shareholders stood at 19% for the year to January 31,compared with more than 20% in the previous year.
It also highlighted the share price reached a three-year high in January, with net asset value increasing by 11.9% in the second half of last year.
The company is striving to see off a challenge from an activist investor.
Chairwoman Lesley Knox said the asset management business saw a sharp increase in third party funds under its management, up from £12m to £83m by the end of the year, and up to £100m since then.
The group’s profits before tax, including capital, were down from £473m to £456m.
These are some of the figures being used in the battle with hedge fund Laxey Partners, which owns an eighth of Alliance Trust equity, and which wants to force a buy-back of shares as a means of raising the share price.
Continue reading the main story
“Start Quote
We are focused on managing the trust in the best interests of these long-term shareholders – not those who are motivated purely to make a short-term gain”
Lesley KnoxChairwoman, Alliance Trust
It is pressing other shareholders to back its campaign to overturn the management strategy at the company’s annual general meeting on 20 May.
It argues the share price has been trading at nearly 20% below net asset value of Alliance Trust funds, and it wants that brought below a 10% discount.
Alliance Trust’s chairwoman said the company’s performance was in the median range for its corporate peer group.
“Through regular engagement with our shareholders, we believe that we have a good understanding of their long-term investment priorities,” she said.
“We are focused on managing the trust in the best interests of these long-term shareholders – not those who are motivated purely to make a short-term gain.”
Chief executive Katherine Garrett-Cox said there was already a share buyback under way, with nearly £9.6m put into supporting the Tayside company’s share price.
Near-term prospects for stock markets remain “clouded” by uncertainties, including rising commodity prices and consumers’ debt burden, she added.
Fisher Capital Management Investment Solutions: Novices, take Trio Capital Funds as a warning
http://www.theaustralian.com.au/business/novices-take-trio-capital-funds-as-a-warning/story-e6frg8zx-1226039900616
# Glenda Korporaal
# From:The Australian
# April 16, 2011 12:00AM
THIS week’s $55 million bailout of the Trio Capital funds — which did not apply to investors in self-managed superannuation funds — is not an argument against having a self-managed superannuation fund.
But it is an argument that those who do not have the interest or the skills to take an active interest in the management of their money would be better off opting for their employer’s default fund, an industry superannuation fund or a major reputable fund.
Those considering taking their money out of an established super fund and putting it in a self-managed superannuation fund — who are being convinced to do so by a “friendly” financial adviser offering to take on the hassle of handling paperwork and annual tax returns — should think again.
Having a self-managed superannuation fund can offer a considerable degree of flexibility and control for those who know what they are doing.
Related Coverage
* Super is not as safe as you think Herald Sun, 1 day ago
* Claims loom on Trio fundThe Australian, 1 day ago
* DIY funds to put case for compo The Australian, 2 days ago
* DIY super funds entitled to Trio compo The Australian, 2 days ago
* Warning for self-managed super funds The Australian, 2 days ago
But those who don’t know what they are doing, and take the self-managed super option, are highly vulnerable to the skills and integrity and the judgment of their financial adviser in a way which would not occur if they opted for a no-fuss conventional option.
This week’s bailout was a timely reminder that the levy system that benefits investors in APRA-regulated funds does not apply to self-managed super funds. “Trustees of self-managed superannuation funds have to be aware that there isn’t any form of compensation for which things go wrong, except for remedial action through the courts,” Sharyn Long, the chairwoman of the Self Managed Super Fund Professionals Association (SPAA), said yesterday.
“If a financial adviser is involved they can take action, but there is limited remedy for them in cases where fraud occurs.”
The bailout is based on the fact that APRA-regulated funds will be levied to cover the cost of the fraud involved. The system does not apply to self-managed super funds. The logic is that why should the trustees of some 400,000 small funds, often operated for only two or three beneficiaries, have to pay up for the investment mistakes of a handful of other small funds (in this case 285 SMSFs) who would have quite happily reaped the upside if the funds had delivered the superior performance?
There may be some change to that situation but this is what is prevailing at the moment.
The collapse of Trio does reinforce the need for all investors to do their homework on the type of funds they invest their money in, particularly funds offering higher than normal returns or which may have unknown international links. “The basic principle is that the higher the return, the higher the risk,” says Long. “One of the main tools to mitigate that risk is diversification.”
No investor should put all, or the bulk, of their investments into one fund or one associated group of funds. And the more exposed one is to a fund, the more need for detailed homework.
It is also a general warning that anyone who uses a financial adviser should not regard this as a reason to suspend all judgment — no matter how competent they appear or how much they offer to take over the burden of financial life.
There is no excuse for not asking questions about where and how the money is being invested.
In the case of Trio, the situation was made worse by the fact that there was a wrap situation where fund managers handed over their clients’ funds, with those funds invested in Trio-related funds such as Astarra.
In the case of wraps, it is vital that the investor has complete confidence in the operator of the wraps — and only after doing some basic homework.
If the fund itself or the wrap provider is not well known, the investor should ask what is it and who are its principals.
The Trio funds were based out of Albury, which is not exactly the funds management capital of the world. Warren Buffett, of course, is based in Omaha, which is not the fund management capital of the world either. But he and his Berkshire Hathaway organisation are well known and have a track record of integrity.
With the ready availability of search engines such as Google, investors can easily do simple online searches from the comfort of home.
The searches should be done on the funds and the principals of those involved to see if there is any “form”, or any questionable activities.
The fact that the fund is offering investment in exotic products using offshore tax havens should also be a red flag for investors to do some extra homework.
In the end there will always be fraud — which is the reason that the default option for anyone with little financial knowledge should be to go with the plain, vanilla-type of investments with plain, vanilla-type managers.
John Hempton of Bronte Capital, who raised the alarm on the Trio funds, also raises other issues of concern about the lack of regulation of broker-dealers and how they are still allowed unrestricted pledging of client assets.
This is another area which needs some government attention. But in the meantime the Trio collapse should be a wake-up call for investors that there is no excuse not to be aware of exactly how their funds are invested and who is handling their money. When it comes to handing over your money to anyone, all questions are good questions.
There are no dumb questions.
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