Dec 17, 2010 ~ Business

Friday, December 17, 2010

Asian stocks rose for the first time in three days & Toyota Motor Corp., sank 0.9 percent

Asian stocks rose for the first time in three days, sending the MSCI Asia Pacific Index to its second weekly leading index this month, as technology companies and funding obtained in the earnings outlook.

Samsung Electronics Co., rose 1.7 percent in Seoul after Canada's Research in Motion Ltd., maker of BlackBerry phones, reported earnings that beat estimates. Mizuho Financial Group Inc. led Japanese banks higher after Nomura Holdings Inc. increased the rating action. Toyota Motor Corp., sank 0.9 percent after sales of the automaker expected country of the national association will fall next year.

The MSCI Asia Pacific Index rose 0.4 percent to 133.90 as of 17:15 in Tokyo, with about nine shares rose for every eight that declined. The indicator is directed to a gain of 0.6 percent this week. He climbed to a 2 1/2-year high this week as U.S. reports increased economic reliance on a global recovery, easing concerns that Europe's crisis of debt and China's measures to curb inflation, will affect growth.

"We're seeing that the world economy is recovering gradually," said Hiroichi Nishi, an equity manager in Tokyo at Nikko Cordial Securities Inc. "Concerns about the fiscal problems in Europe will continue. Not the kind of problem to be resolved in a day or two. "

Japan's Nikkei 225 Stock Average, Australia S & P / ASX 200, and China's Shanghai Composite Index fell below 0.5 percent. Hong Kong Hang Seng Index, Taiwan's TAIEX index and the Kospi index in South Korea rose by at least 0.2 percent.

U.S. Unemployment

Future over 500 of Standard & Poor's have changed little today. The index rose 0.6 percent yesterday to 1242.87, its highest close since September 2008, when Lehman Brothers Holdings Inc. collapsed.

The number of U.S. workers filing initial claims for unemployment benefits fell last week to 420,000, the lowest level in three weeks, the Labor Department figures showed yesterday.
Samsung Electronics, which aims to double its sales of smartphones in the coming year, rose 1.7 percent to ₩ 926 000. Research In Motion yesterday reported third-quarter revenue and earnings that topped analysts' estimates.

Taiwan Semiconductor Manufacturing Co., the world's largest maker of customized chips, rose 2.4 percent to NT $ 72.90 in Taipei, its highest close in 10 years. The company and United Microelectronics Corp. can make orders as competitors such as NV and NXP Semiconductors Renesas Electronics Corp. closed the plant, the Commercial Times reported.

Supports larger

Samsung and Taiwan Semiconductor were the main individual supports for the MSCI Asia Pacific index.

Sharp Corp., Japan's largest maker of liquid crystal displays, rose 2.5 percent to 849 yen in Tokyo. The company will spend 100 billion yen (1.2 billion) in a production line to supply mainly to the screens of Apple Inc. 's iPhone, the Nikkei newspaper.

Foxconn Technology Co., controlled by the richest man in Taiwan, gained 1.3 percent to NT $ 116.5 in Taipei after the Commercial Times said Nintendo Co. of Japan took Foxconn as the only Taiwanese company to set up your video 3DS, game consoles.

The MSCI Asia Pacific Index gained 11 percent this year through yesterday, compared with gains of 11 percent in the S & P 500 and 9.3 percent in the Stoxx Europe 600 index. Stocks in Asia benchmark were valued at 14.7 times estimated earnings on average at the end of yesterday, compared with 14.6 times for the S & P 500 and 12.3 times for the Stoxx 600.

Banks, Brokerages Gain

"Valuations are very attractive market," said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd. on Television. "The U.S. economy is beginning to look a lot healthier."

the third-largest bank Mizuho Financial Group Inc. of Japan by market value, increased 2 percent to 153 yen after Nomura raised its rating to "buy" from "neutral." won Mitsubishi UFJ Financial Group Inc., the country's largest lender by market value, up 1.2 percent to 440 yen. Sumitomo Mitsui Financial Group Inc., the No. 2, increased 1.2 percent to 2.891 yen.

Woori Investment & Securities Co. of South Korea took top brokers in the trade of speculation will increase and increase revenue as the benchmark stock index is approaching a record level. Woori Investment, Daewoo Securities Co., Mirae asset Securities Co. and Samsung Securities Co. all gained more than 5 percent.

Nomura Real Estate Holdings Inc. rose 10 percent to 1,447 yen, the biggest percentage gain in the MSCI Asia Pacific index, after the Japanese developer raised its operating profit forecast for the full year by 39 percent.

Commodities Slump

Toyota, also the largest automaker in the world, fell 0.9 percent to 3.255 yen. Nissan Motor Co. lost 1.5 percent to 795 yen. Suzuki Motor Corp. declined 1 percent to 2.034 yen.

Association Japan Automobile Manufacturers said sales of new vehicles next year will fall by 9.9 percent after a gain of 7.5 percent in 2010.

commodity firms fell as oil prices fell and metal. Crude oil for January delivery lost 1 percent to $ 87.70 a barrel in New York yesterday, the lowest close since Dec. 1. The London Metal Exchange Price Index of six industrial metals like copper and aluminum fell 0.7 percent yesterday, a third consecutive decline. Gold also fell yesterday.

Mitsubishi Corp., which gets more than 40 percent of sales of energy and metals, retreated 1.1 percent to 2195 yen in Tokyo. Rio Tinto Group, the world's third largest mining, fell 1.6 percent to $ 85.65 in Sydney. Newcrest Mining Ltd., Australia's No. gold producer, sank 1.7 percent to $ 40.77.

Mitsui & Co., a Japanese trading company, sank 2.2 percent to 1.312 yen. The stock has lost 3.4 percent in the last two days after the U.S. government said it sued Mitsui unit in connection with the largest oil spill at sea in U.S. history, after the April explosion of an oil rig in the Gulf of Mexico.

Housing prices in 70 Chinese cities rose 7.7% in November from the previous year

China's building boom continues "without ceasing" and has even increased since the government enacted policies to cool the speculation, said Jim Chanos, the hedge fund manager who predicted that the market may crash after 2010.

Housing prices in 70 Chinese cities rose 7.7 percent in November from the previous year, even after the government suspended the mortgages for the purchase of a third country and pledged to introduce a property tax. Sales volume increased by 14.5 percent.

"Many of the regulations in China, which are designed to be lined," Chan said in an interview with Carol Massar and Matt Miller on Television Street Smart program. "The boom has continued unabated. In fact, even took a bit recently, at the end of the year."

Chanos repeated his view that China is in a "treadmill to hell" because of the country's dependence on property development for economic growth. Millions of homes are empty in the nation as speculators dominate the market, Chan said, which also describes China's property bubble as "times of Dubai 1000."

China's central bank raised bank reserve requirements on 10 December for the third time in five weeks to control inflation and restrict foreign capital and increased interest rates for the first time in three years in October.

An indicator to monitor stocks of property on the Shanghai Composite Index fell 0.6 percent to a minimum of one week to end at 3 pm. China Vanke Co. dropped 0.4 percent on the Shenzhen Stock Exchange, while Poly Real Estate Group Co. declined 0.6 percent in Shanghai.

More earnings

While progress each year in property prices in November was the slowest in a year, it rose from 18 consecutive month, according to government data.

China Vanke, the nation's largest publicly traded developer, said earlier this month became the first Chinese developer to post annual sales of 100 million yuan ($ 15 million), a goal it had set for 2014 and challenging the government's measures to cool the real estate market.

Chanos, who was one of the first investors to foresee the collapse of 2001, Houston-based energy company Enron Corp., said some Chinese developers are increasingly leveraged and are taking more money from international investors, providing opportunities for hedge funds. He did not mention specific actions.

"Everyone seems very interesting from the perspective of short-sellers," said Chanos, founder of Kynikos Associates LP. "The West is the investor will end up holding the bag real estate here."

"A little extreme '

Some brokerage firms remained optimistic about the housing market in China. Citigroup Inc. said this week the national housing plan to boost social welfare must be positive for real estate and the government wants a "stable" in the housing market and maintained its "optimistic."

chanos see "a little extreme," said Glenn Rufrano, president and CEO of Cushman & Wakefield Inc., the world's largest privately owned real estate services company, in an interview on Television. "The economy is growing and has grown and the housing market is increasing in value. The government knows this and they are getting ahead."

Along with Vanke, Shanghai Forte Land Co. said this month that its sales volume reached 12.6 billion yuan in November, exceeding its annual revenue target of $ 11.5 million. Shimao Property Holdings Ltd., said that 91 percent of 30 billion yuan this year's target sales late last month.

China's stocks have fallen property following the government's policies. Meter stocks lost 26 percent this year, more than double the decline in the measure in question and the majority of five industry groups.

Curbing prices

The Chinese government will loosen the measures to curb property prices next year due to the continuing risk of a bubble, Vanke Chairman Wang Shi told Reuters reported yesterday. The measures have made some progress and moderation in the pace of the proceeds of the property would be an achievement, "said Wang, according to the report.

Porcelain strengthen controls on housing markets and to curb speculative investment from next year until 2015, Xinhua news agency reported Tuesday, citing China's Ministry of Housing and Rural Development.

Canadian stocks rose for the first time in four days

Canadian stocks rose for the first time in four days as Research In Motion Ltd. advanced on its earnings and sales forecasts and Teck Resources Ltd. acquired in copper prices.

Research In Motion, maker of the BlackBerry smartphone, was the largest taxpayer and the Standard & Poor's / TSX Composite Index advanced less than 0.1 percent. Teck, the largest producer of the metal base, rose 2.9 percent as copper headed for a weekly gain. Bank of Montreal, Canada's fourth largest bank, fell 6.5 percent after agreeing to buy Milwaukee-based Marshall & Ilsley Corp. for about $ 4.1 billion.

The S & P / TSX rose 11.05 points to 13,192.28 as of 14:15 in Toronto, with RIM accounting for nearly 7 points of the advance. The main point of reference for the actions of Canada fell 0.9 percent from December 10 through Sunday, and is preparing for its first weekly decline this month after closing at a maximum of 27 months on 13 December.

RIM, the company larger than 13 by weight in the S & P / TSX, gained 3.2 percent to C $ 61.49. third-quarter profit, excluding some items was $ 1.76 per share, beating the average analyst estimate by 6.7 percent.

"The market has been betting for some time that RIM had lost its technological edge," said Sebastian Van Berkom, president of Van Berkom & Associates Inc. in Montreal, which manages C $ 1.4 billion, mainly in shares of small and medium-sized companies companies. The actions "fell to a very low multiple of that."

Forecast

Revenue this quarter will be $ 5.5 billion to 5.7 billion U.S. dollars and earnings per share will be $ 1.74 to $ 1.80, Waterloo, Ontario, RIM said. Analysts expected revenue of 5.46 billion U.S. dollars and earnings of $ 1.61 per share.

RIM has a new version of the BlackBerry Bold and the torch, which has a sliding keyboard and enhanced Internet browser, to attract customers of Apple Inc. s iPhone. " RIM is also hitting the demand in markets such as Brazil and Indonesia for less expensive models like the curve, incorporating their free instant messaging system to reject the challenge of a series of new phones based on Google Inc. 's Android software.

Teck Resources rose 2.9 percent to $ 57.81. Copper rose 0.7 percent as European Union leaders agreed on a plan to contain future crises of debt and economic reports in the U.S. and Germany strengthened the prospects for demand for the metal.

Bank of Montreal fell 6.5 percent to $ 58. C will increase about $ 800 million in stock to help finance the purchase of Marshall & Ilsley, the largest acquisition ever that the Canadian bank.

The acquisition is the third largest in a Canadian bank or insurer in the U.S., behind Manulife Financial Corp. 's 10.9 billion U.S. dollars for the purchase of John Hancock Financial Services Inc. in 2003 and try to Toronto -Dominion Bank of 8.3 billion for Commerce Bancorp Inc. in 2007.

2013 Profit

The transaction will add to earnings in 2013, excluding merger costs of C $ 540 million, Bank of Montreal, said.

Other Canada's largest lenders also fell. Toronto-Dominion Bank fell 0.4 percent to C $ 72. Royal Bank of Canada fell 0.6 percent to C $ 51.52. Bank of Nova Scotia retreated 1.2 percent to $ 55.74.

Financial companies are the second worst performing industry in the S & P / TSX this year, returning 4.9 percent compared with a profit rate of 12 percent. Can be between the best performing together as the economy improves and the dividends are restored, Van Berkom said.

Onex Corp. rose 1.7 percent to C $ 29.41. Canada's largest venture capital firm is in talks to sell its Husky Injection Molding Systems for rival private equity firms and can get up to $ 2 billion, said people with direct knowledge of the matter.

Ireland's credit rating was reduced five levels

Ireland's credit rating was reduced five levels by Moody's Investors Service and further reduction is possible for the government struggles to stem losses in the banking system in the country.

The rating was reduced to Baa1 from Aa2, Moody's said in an emailed statement from London today. That is three levels above non-investment grade and at the same level as countries like Russia and Lithuania. The rating outlook is "negative," said Moody's.

Irish lawmakers on Dec. 15 voted to accept a 85 million euros (113 million) aid package for European governments and the International Monetary Fund to stabilize the country's finances. Moody's said that confidence in Irish banks "evaporated" in the run to the rescue.

"While a cut was anticipated, the severity of the reduction is surprising," said Glas Securities fixed-income firm based in Dublin, in a note e-mailed today.

As European governments struggle to stop the spread of Greece and Spain to other countries, Moody's said this week that could reduce Spain from Aa1. He also Greece's Ba1 rating on review for possible downgrade. The European Union leaders agreed at a meeting yesterday in Brussels to modify the treaties of the block to create a permanent mechanism for crisis management in 2013.

Bank Costs

Although the Irish government has said it is fully funded until mid-2011, investors dumped bonds of the country over concerns that the cost of the banking bailout swamps in the state. Government figures on 28 November showed that Ireland can spend as much as 83 billion euros, more than half of its gross domestic product, to support banks and Allied Irish Banks Plc.

The government plans to reduce spending by 20 percent and raise taxes in the next four years to reduce its deficit. The budget deficit is 12 percent of GDP this year, or 32 percent, including a bank bailout, the government estimates.

"The austerity measures could have feedback effects on economic growth, domestic demand, and that is something that must be controlled," said Dietmar Hornung, an analyst at Moody's, in an interview. He said it is "very unlikely" that Ireland default on its debt.

borrowing costs in Ireland initially rose after the rescue was agreed on 28 November, before declining. The extra yield investors demand to hold bonds to 10 years in Ireland rather than its German equivalent, the European benchmark, widened to a record of the euro was 680 basis points on November 30. Was at 533 at 9:09 am in London, compared to 521 yesterday.

"Ireland has achieved high levels of indebtedness in the past and has shown political cohesion and commitment to enact difficult fiscal consolidation measures," said Hornung. "The government is making significant investments in its banking system that could ultimately generate revenue."

Jeffrey N. Vinik has invested nearly half of its portfolio of U.S. equities in passive index funds After stocks gain

Jeffrey N. Vinik has invested nearly half of its portfolio of U.S. equities in passive index funds , Of the $ 3390000000 Vinik oversaw in action September 30, about 48 percent was composed of exchange-traded funds that track industries and global markets, according to a regulatory submission in November. His Boston-based company had more shares than any other hedge fund in 11 of the 13 ETFs on its property.

jeffrey is consider manager of investment funds whose shares teams have beaten the markets during the better part of two decades.

It is described as "bottom-up investors, Vinik is known for making big moves that challenge the conventional wisdom, including an untimely decision to sell tech stocks and buy U.S. Treasury bonds at the head of Fidelity Magellan mutual fund in 1996. ETFs are passive index funds most used by managers who invest on the basis of broad economic trends which consider the different companies that bid for or against.

"I do not know of any hedge fund stock selection using ETFs in the long side," Eric Weinstein, chief investment officer at fund of funds firms in New York, Neuberger Berman Group LLC, said in an interview directly. "The macro managers to use ETFs as part of their ordinary day to day business of portfolio management -. betting that markets will go up or down"

Mark Hostetter, chief operating officer of Vinik Asset Management LP, declined comment.

ETF Trading

Unlike shares of traditional mutual funds indefinite can only be sold at the end of each day the net asset value, ETFs traded on stock exchanges, allowing investors to trade when markets are open . Most ETFs are passive, holding the stocks that are market benchmarks, as 500 of Standard & Poor's of major U.S. companies and the S & P Energy Select Sector Index, a benchmark for oil and gas.

Managers use ETFs to speculate in the markets for stocks, bonds and commodities, or to reduce the risks of investing in these assets. Some money in the park fund, and that research specific stocks within an industry or index.

"There are plenty of people who use ETFs as a simple, cheaper way to make a portfolio," said Peter Shea, a lawyer at the New York office of Katten Muchin Rosenman LLP who works with money exchange and commodities. "It may be a way to get quickly in case of not having a lot of gibberish."

Beating the S & P

In 1996, Vinik made investment decisions in 25 companies a day during the execution of Vinik Overseas Fund Ltd., according to the website of his alma mater, Duke University Pratt School of Engineering in Durham, North Carolina. The fund has about 76 percent, 45 percent and 29 percent after fees in 1997, 1998 and 1999, respectively, exceeding the S & P 500 earnings 33 percent, 29 percent and 21 percent.

Vinik current vehicle, NID Overseas Fund Ltd., rose 50 percent in 2007 compared with 5.5 percent return for the S & P 500 including dividends, according to foundation tax records by Michael Gordon , another manager of Vinik Asset Management. The following year, NIDs abroad fell 3 percent as the benchmark fell 37 percent, tax records show.

Vinik not publicly disclose the fees charged, and releases little information on the NIDs overseas, which he established in November 2004 after taking a break from the administration of government money to spend more time with his family. NID created overseas primarily to invest their own cash along your friends, family and a few customers outside including billionaire George Soros, said two people briefed on the matter who declined to be identified because the fund is not public.

Long-Short Equity

The strength of Duke University, where Vinik received a degree in civil engineering in 1981 include a $ 50 million in overseas NIDs in 2006 financial statements. Other shareholders include Permal Asset Management Inc. in New York and financial Hunt Ventures LP of Dallas, which describe NID reports overseas investors as a capital fund long-short. That means it takes "time" position by purchasing shares while betting against each other through short selling, or borrowing and then selling shares in anticipation of a price decline.

Late last year, held Vinik ETFs worth 555.6 million U.S. dollars, equivalent to 17 percent of the $ 3.2 billion in stocks listed on Form 13F filed with the U.S. Securities and Exchange Commission. The value nearly tripled to 1.64 billion U.S. dollars at the end of the third quarter after additional purchases and the market's gains.

The change coincided with a movement away from retailers and other consumer discretionary stocks, as Vinik company to reduce its holdings in companies such as Ross Stores Inc. and Amazon.com Inc. to $ 802,000,000 at September 30 de 2080000000 mid-year dollars.

Emerging Markets

Vinik simultaneously bought shares worth $ 446 million in a couple of ETFs that track the S & P 500 and Russell 2000, two benchmarks for U.S. stocks, the latest sign the document. It also acquired a $ 146 million in the iShares MSCI Emerging Markets Index, lifted shares in a fund traded iShares Brazil and compared their bets on iShares funds to Australia, Canada and China.

The manager said a share of U.S. $ 292 million in the Energy Select Sector SPDR Fund, composed of oil and gas companies such as Irving, Texas, Exxon Mobil Corp. and Chevron Corp. in San Ramon, California, during the quarter . He bought $ 105 million of shares in the Industrial Select Sector SPDR Fund, whose largest holding is General Electric Co., Fairfield, Connecticut, while the sale of half of the 20 million shares it held in the Financial Select Sector SPDR late June.

'Down to Earth'

"ETFs is clearly where it is difficult to get their feet on the floor and do the analysis, as in emerging markets, said James Lowell, chief investment strategist of Adviser Investment Management Inc., a Newton, Massachusetts, which has about $ 1.3 billion in mutual funds and publicly traded. "If he goes in the oil and gas and construction of large emerging markets, which has a correlation with how energy plays," Lowell said, noting that crude oil and natural gas are the main exports from countries like Mexico and Venezuela.

Other hedge funds have reported 13Fs have ETFs in their form, a document used by money managers to show their holdings in shares listed on U.S. exchanges the end of each quarter. The forms do not include short-selling stocks. Most hedge fund investments in ETFs listed in one or two.

In 2004, the fund of Louis Moore Bacon of ownership of shares of the SPDR S & P 500 ETF valued at $ 922 million, or more than half of its units. Eton Park Capital Management LP held 4,600,000 SPDR Gold Trust shares worth 585 million U.S. dollars to 30 September.

Hedge funds accounted for 9 percent of the 154 billion in ETF assets held by U.S. money managers in late 2008, the latest data available from BlackRock Inc., the New York-based firm that runs the iShares funds.

Increased Correlation

Hedge funds have increased their use of ETFs when they want to protect against declining markets, "said Weinstein of Neuberger Berman. Shorting individual companies has become more risk because it will increase this year in the correlation between action means there is a greater likelihood that even the weakest companies could increase if the market does.

"Many of the movements in the market have been macro-based and not based on individual company news," said Duncan Hennes, a partner at Atrevida Partners LLC, a hedge fund multi-strategy based in Rye, New York , director and former chief executive of the Soros money management. "It's harder to make money by being long undervalued companies and societies that overrated when all stocks tend to move in the same direction."

Magellan Bold Bet

It was a huge bet, macro call that marked the end of the race is Vinik at Fidelity Magellan, which monitored from July 1992 until May 1996 when it ranked as the largest investment fund in the world, with more than $ 56 billion in assets. Reports of the shareholders of the fund, Vinik said that the management of Magellan, a "stock for shares" basis, looking for companies that could produce the best growth of long-term gains while selling at valuations reasonable.

During the fourth quarter of 1995 and first quarter of 1996, Fidelity Magellan Vinik cutting technology holdings to 3.5 percent of the net assets of 40 percent, indicating that revenue growth is slowing in business. At the same time and plowed 21 percent of funds in U.S. Treasury bonds.

The move sparked an outcry from shareholders who complained that Fidelity Magellan, a growth fund formerly run by Peter Lynch's mentor Vinik, you should not invest in bonds. Vinik, who beat the market with average annual returns of 18 percent until 1995, left Boston-based Fidelity next May and Magellan ended the year with a total return of 12 percent, about half of 23 percent gain registered by the S & P 500.

"He is most famous, for better or worse, to place a bet of asset allocation at the end of his mandate," said Christopher Davis, a research analyst at Morningstar Inc. Chicago "The investment in bonds at the end of 1990 not going to ingratiate himself with anyone. "

Republican leaders in Congress are worried about Ben S. Bernanke 's second round of quantitative easing

Republican leaders in Congress say they have "serious concerns" about Ben S. Bernanke 's second round of quantitative easing. The U.S. stock markets and credit do not share those reservations.

500 Standard & Poor's has risen 17 percent since the Federal Reserve chairman said in the first place on 27 August that the central bank could buy more securities to stimulate the economy. junk bonds rallied, with the extra yield that investors demand to own the securities instead of government debt reduction to 5.45 percentage points from 6.81 points yesterday, according to data from Bank of America Merrill Lynch index .

"It was a success," said Peter Hooper, chief economist at Deutsche Bank Securities Inc. in New York, Bernanke's policy of pumping money into the financial system, called Queen Elizabeth 2. "It has contributed to the concentration in the stock market" and "has been important to reduce substantially the risk of deflation."

Reports signal economic recovery is gaining strength. A larger than expected increase in retail sales in November asks Michael Feroli, chief U.S. economist JPMorgan Chase & Co. in New York, to raise its outlook for consumer spending in the fourth quarter. November industrial production also beat forecasts, and an indicator of consumer confidence rose to a maximum of six months in December.

The data, along with the prospect Congress approve a plan of 858 billion to extend the tax cuts of the Bush era, has led economists to raise their estimates for growth next year. The economy will expand 2.6 percent in 2011, according to the median forecast in a survey of 66 economists this month, against a forecast of 2.5 percent in November.

Confidence grows

"As people more confidence in the economy, the money is coming into the stock market," said Jeremy Siegel, finance professor at the University of Pennsylvania Wharton School in Philadelphia. "The most important work is the quantitative easing liquidity provision."

New York, chairman of the Fed, said William Dudley on October 1 that the asset purchases would reduce borrowing costs and support the value of homes and stocks, leaving consumers with more money to spend and reducing the cost of capital for companies.

The extra yield investors demand to own corporate bonds with investment grade public debt rather than dropped to 1.7 percentage points yesterday from 1.91 percentage points on August 27, Bank of America Merrill Lynch index data show .

"The markets have generally moved in a direction conducive to growth," said Dean Maki, chief U.S. economist Barclays Capital in New York.

Contrast to the summer

The latest economic data are in contrast to a drumbeat of negative economic reports last summer, including the decline in home sales and payroll, which led economists like Martin Feldstein of Harvard University to warn that the risks of a recession were renewed on the rise.

On August 27, Bernanke said the Fed "will do everything possible" to support recovery and said he was ready to begin a second round of purchases of securities, in addition to the $ 1,700,000,000,000 bought it through last March to shoot of the nation's worst recession since the Great Depression.

November 3 Federal Reserve announced it will buy 600 billion U.S. dollars of treasury bonds in June came a day after congressional elections gave the Republicans a majority of seats in the House of Representatives.

A dangerous experiment "

Sarah Palin, vice presidential candidate in 2008 who says he is considering running for president in 2012, wrote for the Wall Street Journal last month, saying "it is time to 'refudiate" the idea that this dangerous experiment in print 600 billion dollars in the air, with nothing to back it up, magically solve economic problems. "

Rep. John Boehner, of Ohio, nominated to be chairman of the House, and three other Republican leaders sent a letter to Bernanke, November 17, expressing "our deep concern over the recent announcement that the Federal Reserve to buy U.S. Treasury bonds . UU. extra. "

"This bill introduces significant uncertainty about the future strength of the dollar and could result in both hard-to-control, long-term inflation and potentially generating artificial asset bubbles that could cause disruptions in the economic field," they wrote.

Since then, the dollar has gained about 1.8 percent against the currencies of six major trading partners, as measured by IntercontinentalExchange Inc. 's index of the dollar as of 1:19 pm in New York. The dollar has fallen 2.9 percent since Aug. 27.

The cost of living increased 0.1 percent in November, less than expected, which indicates an increase in commodity prices is not filtered through into other goods and services, according to a December 15 Department Working.

Seen as favorable

"We expect a rapid major change in inflation in the short term," said Maki, who was the No. 2 overall economic forecaster U.S. in the two-year period ended September 30. "What we're waiting for is a very gradual trend can be seen by the Federal Reserve so favorable."

Policy makers are concerned that too low inflation will drive up borrowing costs and increase the risk of deflation, or declining prices increasing debilitating debt and reduce wages and benefits.

Fed policies have pushed inflation expectations rise. The rate of return of 10-year Treasury Inflation Protected Securities, the performance difference between debt and inflation indexed Treasuries of similar maturity, has risen to 2.3 percentage points from 1.63 percentage points August 27. The index is a measure of the outlook for consumer prices during the life of the securities.

Risk reduction

"Because the Fed is acting, I'd say the risk is very low" deflation, "Bernanke said in an interview with CBS Corp. s'" 60 Minutes "program broadcast on December 5. "But if the Fed did not act, then taking into account how inflation has fallen sharply since the beginning of the recession, I think it would be a more serious concern."

Not all indicators track to Bernanke. November payrolls increased by 39,000 jobs, less than the most pessimistic forecast in a survey of economists, and the unemployment rate rose to 9.8 percent from 9.6 percent.

The pace of economic growth is "insufficient to reduce unemployment," the Federal Open Market Committee this week, as it said its plan to purchase bonds and renewed the promise of a "prolonged period" of low interest rates.

An increase in the yield on the Treasury has provided fodder for critics such as Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut.

'Resounding failure'

"Their efforts to achieve the stated purpose of pressing long-term yields lower has been a complete failure," Stanley said in a report of 14 December. The yield on the benchmark 10-year Treasuries has climbed to 3.36 percent from 2.64 percent on Aug. 27.

Kevin Hassett, director of economic policy studies at the American Enterprise Institute in Washington and former Fed economist, said the central bank can not claim sole credit for the manifestation of values, which he said was caused by "a lot of better economic data. "

Hassett, one of 23 scholars mainly Republican and former policy makers who signed a letter last month to Bernanke, saying that the arrest of the enlargement of monetary stimulus, and it will increase inflation, also asked if the stock gains will stimulate consumer spending through the so-called wealth effect.

While investments in consumer stocks have gained in value, their bonds are falling ", said Hassett.

Too early to judge

Former Fed Governor Lyle Gramley said it was "too early to make a final ruling" on the purchase of bonds of the Federal Reserve.

"I do not know how to analyze the effects of QE2 given the changes in the environment", including sovereign debt crises in Europe and prospects for an extension of tax cuts in the U.S., said Gramley, senior adviser Potomac Research Group in Washington.

Others say the rise in bond yields is a positive sign that reflects the prospects for faster economic growth and rising inflation expectations.

asset purchases by the Fed are keeping yields lower than they would, Citigroup Inc. analysts led by Robert DiClemente said in a report of 10 December. At 3.36 percent, the yield on the benchmark 10-year Treasury is below its 10-year average of about 4.16 percent.

'Grave error'

"Looking only at the long-term rate is a serious error in the interpretation of this policy" because the quantitative easing works by increasing the liquidity of the University of Pennsylvania, said Siegel.

Siegel notes that the rise in commodity prices as another sign of increased confidence in the economy. Oil futures rose 17 percent from Aug. 27 to settle at $ 87.70 yesterday on the New York Mercantile Exchange.

"What the Fed is trying to revive the economy," said Ward McCarthy, chief economist at Jefferies & Co. in New York. "In so far has prevented deflation expectations and encouraged an increase in the stock market then has been a success."

arrests of three workers that pretend selling secrets about Apple Inc., Dell Inc. and Advanced Micro Devices Inc.

The men, who worked at AMD, Flextronics International Ltd. and Taiwan Semiconductor Manufacturing Co., were arrested yesterday on securities fraud and conspiracy for a scheme that Manhattan U.S. Preet Bharara prosecutor said operated from 2008 until early 2010.

He was also arrested James Fleishman as we told before here, a sales manager of Primary Global Research LLC, the company of expert networks, where the three worked as consultants. If convicted, all face four to 20 years in prison.

"Prosecutors want to keep the hedge fund that hired the expert consultants to give them inside information," said Stephen Miller, an attorney with Cozen O'Connor LLP and former federal prosecutor in New York and Philadelphia.

A fifth man, Daniel DeVore, 46, former manager of Dell's supply, pleaded guilty to conspiracy to commit securities fraud and wire fraud in federal court in New York on 10 December, the U.S., said yesterday. DeVore said he worked as a paid consultant for global primary in late 2007 to August 2010 and through the company, accepted the money from the hedge fund insider trading.

Network expert companies like Mountain View, California, the main party of global investors with specialists who provide insight into specific markets. The criminal complaint unsealed yesterday described the links between global primary, experts in technology used by hedge funds and unidentified willing to pay for inside information.

Search Warrants

On November 22, FBI agents in New York and Boston executed search warrants at offices worldwide and LP investors Diamondback Capital Management LLC, the companies founded by alumni of SAC Capital Advisors. Agents that day also executed a search warrant at the offices of Lake Capital Management. None of the companies or their employees has been charged with any crime.

"A network insider corrupt in some of the companies in the world technology leaders served as consultants to call their employers were sold for the theft and smuggling of valuable inside information," Bhar said in a statement.

The researchers had consensual recordings and wiretapping of telephones in an unnamed company expert networks, land lines of an unidentified hedge fund and mobile phones of two of those arrested yesterday, Marco Antonio Longoria, who worked on chipmaker AMD, and Walter Shimoon of Flextronics, a Singapore-based manufacturer of electronic components, the U.S., he said. At least two hedge funds are described in the complaint. Neither is identified by name.

Finding an Edge '

"Few hedge fund managers have the ability to generate investment for the benefits they promise," said James Fanto, a professor at Brooklyn Law School in New York, in an e-mail. "They have to find an advantage however, can - in this case through expert networks," said Fanto, who teaches banking law, corporate and securities.

The case is the latest in crime-based office Bharara the participation of hedge funds based on wiretap evidence. Announced the charges against Raj Rajaratnam, 53, co-founder of Galleon Group LLC, in October 2009, calling it the largest case of insider trading with hedge funds.

The new U.S. report shows I was recording the conversations in global primary a month after the arrest of Rajaratnam.

"If you think you should not talk about it - not you," an unidentified employee said primary Shimoon World during a call, the complaint says.

"If you recorded '

"Now that would suck if all calls are recorded," Shimoon answers.

Fleishman, 41, of Santa Clara, California, was charged with fraud and conspiracy for allegedly trying to give non-public information to clients, including hedge funds, according to the complaint. Longoria, 44, of Round Rock, Texas; Shimoon, 39, of San Diego, and Manosha Karunatilaka, 37, of Marlborough, Massachusetts, who worked at chip maker Taiwan Semiconductor, were charged with wire fraud conspiracy to commit securities fraud and conspiracy to commit wire fraud.

Fleishman appeared in federal court in San Jose, California, yesterday and was released on $ 700,000 bail. Longoria was awarded a $ 50,000 bond and was released by a federal judge in Austin, Texas. Karunatilaka got bail from $ 300,000 in federal court in Boston, his lawyer, Brad Bailey, said. Shimoon, San Diego, made an appearance in court yesterday.

"Including hedge funds"

"Customers PGR were fund managers, including hedge funds, many of which were located in Manhattan," said U.S. District DeVore Judge Jed Rakoff in his plea hearing, according to a court transcript.

"I always customers of the PGR and PGR information materials used non-public, confidential information of Dell, the Dell numbers, production, inventory, pricing and market share vendor Dell hard drives," said . "I also knew that on several occasions I spoke with hedge fund managers and employees based in New York," he said.

David Frink, a spokesman for Round Rock-based Dell, the third largest manufacturer of personal computers, said the company will cooperate with the police. DeVore attorney, Johnny Sutton, declined comment.

Longoria, Shimoon Karunatilaka and had worked as consultants to the World Elementary, Dan Charnas, a company spokesman, said in an emailed statement. Fleishman has been placed on leave, Charnas said. He had no further comment.

AMD resigned

AMD Longoria resigned in October, said Mike Silverman, a spokesman for the Sunnyvale chip maker based in California.

"This type of activity is expressly prohibited by the company," Silverman said.

Longoria is cooperating in the investigation, Sam Bassett, his attorney said in an interview.

Flextronics supplies components to Apple during the time of the alleged fraud, prosecutors said in a statement. Shimoon is accused of providing the firm Fleishman, with forecast sales of confidential information and new product features for the iPhone.

Steve Dowling, a spokesman for Cupertino, California, Apple, declined comment.

Renee Brotherton, a California-based spokesman for Flextronics, did not return an e-mail seeking comment. Taiwan Semiconductor, said in an e-mail Karunatilaka employment ending on the day of his indictment and that the chip maker to cooperate with U.S. prosecutors.

Fleishman is the second officer in charge of the first World Bharara office. On November 24, Don Chu Ching Trang was accused of organizing corporate insiders traded for providing misleading information to the hedge fund clients.

Capital Spherix

Chu, 56, was charged with establishing a relationship with Richard Lee Beng Choo, a former member of San Jose, Calif., hedge funds Spherix Capital LLC, prosecutors said in their complaint against Chu. Lee worked as an analyst at SAC Capital Advisors LLC, the hedge fund firm by Steven Cohen, from 1999 to 2004.

The U.S. company said Chu Spherix paid for tips. The information is passed on Atheros Communications Inc., Broadcom Corp. and Sierra Wireless Inc., according to the complaint of the government. At the presentation yesterday, the U.S., said an unidentified cooperating witness, who worked as co-manager of a hedge fund, directed payments to a company without name-the creation of expert networks.

Lee pleaded guilty last year to insider Spherix Capital and is cooperating with the U.S. Galleon at the probe.

"Cooperating Witness

U.S. prosecutors Lee identified as "Cooperating Witness 1" in the last complaint. In July 2009, Lee recorded conversations in which Longoria gave inside information about AMD, the U.S., he said. The new report also identifies Chu as working in the firm Fleishman as a link to consultants and other sources of information in Asia. "

In January, former director of McKinsey & Co. Anil Kumar pleaded guilty to criminal charges, saying that information was leaked before Rajaratnam on the AMD acquisition of ATI Technologies Inc. in 2006, Rajaratnam used to make $ 19 million galleon. Rajaratnam, 53, has denied any wrongdoing and is scheduled for trial next year.

Bharara thanked Apple, Flextronics, AMD, Taiwan Semiconductor and Dell for their help in the U.S. probe. The investigation continues, he said.

"You have to imagine it going in the direction of the funds," said Miller, the former federal prosecutor.

Bank of America Corp. and Citigroup Inc. are about to be "two of the stars" in the bond market next year, said Mark Kiesel, global head of corporate bond portfolio at Pimco in Newport Beach , California. The largest U.S. lenders are an attractive value compared to "all banks can be bought in the world," he said. So Pimco " Pacific Investment Management Co" is betting on U.S. debt bank rally in 2011 when the economy accelerates.

Pimco, which increased its economic growth forecast last week, is backing bank bonds after the values returned 7.62 percent this year compared with 7.95 percent gain in the company's debt level investment of Bank of America Merrill Lynch index data show. U.S. corporate borrowers will benefit the economy revives after the agreement of President Barack Obama to extend the tax cuts, said Kiesel.
"That was the catalyst that led to the upward revision of growth," said Kiesel, who was nominated for the fixed income manager of the year by Morningstar Inc. "What Obama is showing signs of readiness to move more toward the center net-net is going to be slightly more positive for business. "

Bank of America sold $ 1.5 billion of bonds yesterday in its first offering of fixed rate debt in four months. The largest U.S. lender asset has faced demands from investors to buy billions of dollars in soured mortgages.

Basel III
Charlotte, North Carolina-based Bank of the United States ratio of Tier 1 capital, the most important regulatory measure of a bank's financial health, rose to 8.45 percent last quarter. The Group of 20 last month approved the rules, known as Basel III, setting the minimum 7 percent.
"It is improving the balance that is history," Kiesel said in a telephone interview.
Elsewhere in credit markets, the extra yield investors demand to own corporate bonds rather than government debt of similar maturity was unchanged at 171 basis points, or 1.71 percentage points below this year high of 201 basis points in June, Bank of America Merrill Lynch Global Corporate broad market index shows. The average yield of 4.034 percent.
The Barclays Capital Global Aggregate Bond Index lost 1.02 percent this month, cutting profit this year to 3.13 percent.
Default Swaps Rise
The cost of protecting U.S. corporate bonds increased by default. The Markit CDX North America Investment Grade Index, which investors use to cover losses on corporate debt or to speculate on creditworthiness, an increase of 0.72 basis points at an average price of 86.8 basis points from the 11:58 in New York, according to Markit Group Ltd.
The credit index swaps, which usually increases with deteriorating investor confidence falls, as it improves, has fallen from 99.4 in late November. The credit-default swaps pay the buyer face value if a borrower defaults on its obligations, less the value of the defaulted debt. A basis point equals $ 1,000 annually on a contract protecting $ 10 million of debt.
Pimco raised its forecast for growth by 1 percentage point to 3.5 percent after Obama agreed to extend the tax cuts enacted by his predecessor as Federal Reserve chairman, Ben S. Bernanke, aims to reduce unemployment and prevent deflation by buying Treasuries. The Federal Reserve has kept its benchmark interest rate in a range from zero to 0.25 percent for two years.
"The experience of running fast, or at least run faster, is something that is ultimately the U.S. economy set to do," Kiesel wrote yesterday in a note on the website of the company.
the strongest growth will benefit the banks, guaranteed loans and junk bonds and qualified debt may be upgraded to investment quality, wrote.
Tighter spreads
The bank debt spreads have tightened 24 basis points to statements by the government this year, while investment grade bonds have dropped 20 basis points, Bank of America Merrill Lynch index data show.
Financial companies have tried to recover from the worst financial crisis since the Great Depression to get cheap loans and buying government bonds. Since the beginning of 2007, have lost 1.8 trillion U.S. dollars worldwide and grossed nearly $ 1.6 trillion.
U.S. commercial banks are on track this year to buy most of Treasury and agency debt since the Fed began tracking the data in 1950, adding 193 billion U.S. dollars of securities through December 1 and for a total of 1 , 64 trillion U.S. dollars.
Asset Sales
Federal regulators demanded boost Bank of America common stock for $ 3 million through the sale of assets as part of the company's agreement to pay $ 45 billion in bailout funds. It sold assets such as stakes in Mexican and Brazilian banks, recording $ 1.9 billion in net profit from 30 September.
The Treasury sold its remaining shares in Citigroup by 10.5 billion U.S. dollars earlier this month, bringing the third largest bank in the country a step closer to independence from the government of 2008 after his rescue.
Citigroup shares have risen 39 percent this year. The stock has lost 92 percent of its December 2006 high of $ 56.41. Credit default swaps insure Citigroup's debt against default has fallen 524 basis points since April 2009 high of 667 basis points, according to data provider CMA.
The banks' capital have built like crazy in the last six quarters, "said Kiesel. "They raised private funds to pay the government again, and then, most importantly, that agencies began to pay off the balance sheets of improvement and all that net income does not go into new loans, went to the repair of balance. "
Bank of America
Bank of America were the bonds of U.S. securities more marketed by the corporate distributors yesterday, with 224 transactions of $ 1 million or more, according to Trace, the bond information system in the prices of the Financial Industry Regulatory Authority. Their percent notes due 5875 in January 2021 with a yield of 5.97 percent. The debt is likely to be rated A2 by Moody's, five levels above speculative grade.
Performance "makes no sense" because it is comparable to some garbage values, said Kiesel. Ford Motor Co. 's $ 1,250,000,000 of 8.125 percent bonds due in January 2020 the yield of 6 percent, and classified Ba2 by Moody's, or six levels lower, tracking data show.
U.S. companies have accumulated 943 billion U.S. dollars in cash, compared with 937 billion U.S. dollars at the end of 2009 and 775 billion U.S. dollars in 2008, Moody's said in a report.
"The government is trying to do everything possible to release this money on corporate balance sheets and get them in the real economy," said Kiesel. "Unless companies really start spending and hiring more aggressive, you will not escape velocity."

current tax rates gives wealthy taxpayers the equivalent of an interest free loan

Investors in traditional IRA accounts to pay taxes up front on conversions to Roth IRA to get tax-free withdrawals later. Employees in tax brackets higher than expected rates to rise next year faced reporting additional income of all conversions in 2010, its profitability. With the tax laws, and rich savers may differ and the use of tax dollars to win something, according to Christine Fahlund, a senior financial planner with Baltimore-based T. Rowe Price Group Inc. as The extension of existing tax rates, gives the wealthiest taxpayers the equivalent of an interest free loan if you convert a regular Individual Retirement Account to a Roth December 31.

"It is the business of the century," said Ed Slott, a certified public accountant in Rockville Centre, New York, and founder of irahelp.com website. "It's as if Congress is giving an interest free loan to build a savings account tax free."

This year taxpayers can choose to report the taxable amount of the conversion in 2010, or split equally between 2011 and 2012. Federal tax rates income is expected to increase in 2011 up to 39.6 percent, compared to 35 percent when the tax cuts instituted by President George W. Bush, due to expire.
The Senate approved a plan of 858 billion U.S. dollars of tax cut on Dec. 15 to keep rates of income tax applicable to all workers through 2012. The House voted 277-148 for final approval despite the fact that many House Democrats wanted to limit the extension of tax cuts to the first $ 250,000 of family income. President Barack Obama is expected to sign the measure into law this afternoon.
Tax brackets

That means that a taxpayer in the higher income with an IRA worth $ 1.2 million are likely to pay 35 percent or $ 420,000 in federal taxes by converting the entire account to a Roth IRA this year, according to Fahlund . $ 475,200 would have been paid if the rates of income tax in 2011 increased 39.6 percent, or $ 55,200 more in taxes.

Conversions better job savers know they will be at the top or highest tax brackets in the future, and can pay taxes with money from outside the IRA, said James Lange, a Pittsburgh-based CPA and author "The revolution Roth: pay taxes once and never again."
Defer income from conversions made this year makes sense for most taxpayers who will be in the same tax bracket or less in 2011 and 2012, said Slott, the accountant.
New York Taxpayers

For taxpayers in New York, there is an additional potential benefit of delaying said Mitch Drossman, national director of the planning strategies of wealth in New York, USA Trust, which manages about $ 300 billion in client assets. New York State tax rates on income increased to a maximum of 8.97 percent from 6.85 percent in 2009 and are scheduled to fall again to 6.85 percent in 2012. This means that savers can defer income to a time when they may have lower tax rates, Drossman said.

The Internal Revenue Service income restrictions lifted this year's conversion to the Roth IRA Traditional IRA accounts, ie, taxpayers who earn more than $ 100,000 a year in adjusted gross income can make the change. There is no limit on the amount that can be converted to a Roth IRA from a traditional IRA.

It is too early to know whether taxpayers are choosing to report the income in 2010, 2010 conversions, your declaration or wait until 2011 and 2012. They have until April 15, 2011, more than any of the extensions to decide, said Fahlund of T. Rowe. The company saw an increase of more than four times the number of investors turn to November 2010 compared with the previous year, he said.

Increasing Conversions

Vanguard Group Inc., headquartered in Valley Forge, Pa., has seen a fivefold increase in the number of conversions to Roth IRA this year to about 150,000 by the end of November compared with 2009, said Mary Bruno, who specializes retirement and retirement income for the largest U.S. investment fund manager. USAA in San Antonio has seen a fourfold increase in the membership of the conversion of part or all of your traditional IRA assets to a Roth IRA in October, said Kevin O'Fee, USAA assistant vice president of retirement strategy.

The taxes due on switching to a Roth IRA from a regular IRA will depend on whether the assets being transferred are pre-or after-tax dollars. If tax-free dollars are included, the rate converters pay income tax on a percentage of the conversion amount, says Slott, the accountant.
Savers who expect to be in a lower tax bracket in 2010 than in 2011 or 2012 should not postpone the entry of the conversion, said David M. First, a tax partner at accounting and consulting firm Marcum LLP in New York. And those who will be affected by the alternative minimum tax in 2010 and not 2011 and 2012 also may want to report the income in the year 2010, First said.
Partial transfers
Since the default established by the IRS for changing is to divide the revenues between 2011 and 2012, wealthy taxpayers who choose to defer not to do anything, according to John Bledsoe, founder of John Bledsoe Associates, goods and tax planning firm in Dallas, Texas, whose clients have an average net worth of at least $ 10 million.

"For most people, are advised not to make now is like telling them not to use a seat belt while driving," said Bledsoe. "There is no logic to do so."
When converting to a Roth IRA, savers should try to avoid converting much in one year that blows in a higher tax bracket, said Fahlund of T. Rowe. One option is to make partial conversions so the income is lower, he said.

Investors later change your mind about a Roth IRA has until October 2011, to undo the change. Savers can also create more than one Roth IRA to invest in stocks and bonds separately so you can undo a certain part of the conversion, if one asset class performs poorly, said U.S. Drossman Trust.
Donations

For savers aged 70 ½ and over, the bill includes a tax provision that allows them to give up to $ 100,000 from a traditional IRA directly to charity without incurring tax.
In 2010, donors had to include the distribution of income and received a charitable deduction on income tax of their gifts. The bill would restore income exclusion retroactive to early 2010 and extend to 2011, said Kim Wright-Violich, president of San Francisco, Schwab Charitable.

matchmaker for hedge funds is Caught after Winning 275.500 $ From his work

James works as a sales manager at Primary Global Research LLC, a firm called networking expert. Consultants, who were also employees of technology companies, which allegedly gave clients an advantage in numbers, secret sales and production data from Dell Inc., Advanced Micro Devices Inc., Taiwan Semiconductor Manufacturing Co., and Flextronics International Ltd.

Fleishman James won $ 275,000 last year working as a matchmaker for hedge funds and insider of the company, helping to facilitate the transfer of market data movement technology company employees to investors, prosecutors said .

The Justice Department yesterday charged Fleishman, 41, and three former World primary consultants in Massachusetts, Texas and California with fraud and conspiracy. Also unsealed on December 10 the conviction of an employee of Dell Inc., who worked as a primary global consultant.

"The client requests for general information are made through James Fleishman" and a colleague, prosecutors said in a complaint filed in Manhattan federal court. With the latest charges, and the November 24 arrest of global primary employee Don Chu Ching Trang, USA Preet Bharara Attorney in New York has broken new ground in an investigation of insider trading by hedge funds that had begun in part Galleon Group LLC.

Decades in prison

World Elementary, located in Mountain View, California, is at the heart of the new circle, with two employees and four consultants ex faces federal charges that may take decades in prison. Prosecutors are focusing on how companies and investors connect with corporate information paid to spill secrets.

The government is "based on expert networks, then they are working with consultants, and the next step is to go after the funds themselves," said Bradley Bondi, a lawyer in Cadwalder, Wickersham & Taft LLP and former deputy U.S. attorney general Securities and Exchange Commission who is not involved in the cases. "The cases of business executives are like spider webs. We are at the outer edges."

Global primary is described in a February 2010 statement as "a major independent research firm providing investment to institutional fund managers and analysts for market intelligence through a global network of industry experts."

The sectors covered are technology, healthcare, financial services, media and internet, real estate, alternative energy, retail, and energy and industrial.

Contact Preference

Fleishman was the preferred primary contact for global customers, the government alleged. The "connected", an analyst seeking information on the sale of Marvell Technology Group Ltd. 's contracts with a global supply manager at Dell unidentified, and Marco Antonio Longoria, manager of the former Advanced Supply Chain Micro Devices, the U.S., he said.

"We'll have the people," said analyst Fleishman, according to prosecutors. "Longoria is one of our best experts."

Longoria, who was arrested yesterday, appeared in federal court in Austin, Texas, and was released on $ 50,000 bond. Sam Bassett, his attorney said his client is cooperating with the investigation.

In the organization of calls between the main global consultants and investors, Fleishman stressed the need for secrecy, according to the 39-page criminal complaint.

"We just try to provide anonymity to some extent for the, for experts," the unnamed analyst, who pleaded guilty and are helping prosecutors. "We do not usually give their contact information and even his name. It's kind of point of sale with these people and then, when we're hiring."

Review of Charges

Fleishman lawyer, Brad Bailey, said yesterday it is reviewing the charges. His client was released on $ 700,000 bail after appearing before a federal judge in San Jose, California. Is required to appear in court in New York, Jan. 4.

Last year, the U.S. revealed a common tactic in cases of organized crime - wiretaps - in a probe of insider trading that resulted in the prosecution of Raj Rajaratnam, co-founded hedge fund Galleon. At least 15 of those arrested in the case have pleaded guilty, and Rajaratnam just lost an attempt to pull the evidence obtained through surveillance. About two dozen people have been arrested in that arm of the Justice Department probe of insider trading.

Through the use of wiretaps authorized by the court and witnesses cooperation secretly recorded conversations, prosecutors mounted "one of the investigations of insider-most comprehensive ever conducted," said John J. Carney, a former U.S. attorney and SEC attorney now at Baker Hostetler LLP.

"Find a Way"

"The Department of Justice of the SEC and the usual appearance of a path between the merchant and insider trading," said Carney. "In this case, the network of experts provides anonymity for both the merchant and the source. Without the staff and wiretapping, which could have been discovered."

Fleishman, of Santa Clara, California, was charged with wire fraud and conspiracy to commit securities fraud. He was released on $ 700,000 bail after his arrest yesterday.

Daniel DeVore, manager of Dell's global supply, pleaded guilty to wire fraud and conspiracy to commit wire fraud and securities fraud.

In addition to Fleishman and Longoria, 44, of Round Rock, Texas, prosecutors yesterday also arrested Walter Shimoon, 39, of San Diego, a business development director of Flextronics, and Manosha Karunatilaka, 37 years, Marlborough, Massachusetts, an account director at Taiwan Semiconductor. They were charged with wire fraud and conspiracy to commit wire fraud and securities fraud.

Placed on Leave

Fleishman, who joined Global Primary in June 2006, was put on leave by the company, according to spokesman Dan Charnas. Shimoon was an expert consultant in August 2007 to November 2010, Longoria was from March 2006 to March 2010 and consulted Karunatilaka September 2007 to July 2010, Charnas said in an e-mail.

Global primary four consultants paid more than $ 400,000 in total, prosecutors said.

Longoria was especially popular with major customers worldwide, according to the Federal Bureau of Investigation. On April 7, 2009, Fleishman told another employee that Longoria Elementary World had 40 calls with customers in the last 60 days talking about "12 15" investors, according to the complaint.

Since January 2008, when he began working for Global Primary, June 2010, Longoria won more thanwhen he began working for Global Primary, June 2010, Longoria won more than $ 200,000 for his work, the FBI said. When confronted by an FBI agent on October 12, 2010, Longoria said that "it is quarterly with Fleishman and others in the company, during which he provided AMD sales price information and other tips in the interior, According to court documents.

'Heavyweights institutional'

Fleishman wrote on its Web site LinkedIn to win business with "more than 30 new accounts, including corporate heavyweights" with more than $ 100 billion in assets under management. Its customers include equity analysts in hedge funds and mutual funds, wrote.

"I've always liked talking to people, explaining what I know and learn new things," he wrote on his website, adding that his specialties include "Relationship Management" and "prospecting for new business."

Fleishman attended San Jose State University, worked as office manager in the media and a generic vendor MailFrontier Inc., according to her LinkedIn page. He also taught English in South Korea, he said.

Continued in the hallway of illegal insider right until prosecutors began their offensive, the government said. On October 16, 2009, the same day federal agents arrested Rajaratnam, Fleishman said that New York Longoria Galleon was "definitely not" a customer of your company.

"Well," said Longoria, according to the complaint. "I was like really nervous."

The case is U.S. c. Shimoon, 10-mj-2823, USA District Court, Southern District of New York (Manhattan).

competition for private bankers to Asia reducing profit margins

The competition for private bankers to Asia to reduce profit margins for companies wealth management as more companies enter the market, "said Hanspeter Brunner, CEO of BSI SA, for the region.

Cost to income ratios in private banking in Asia, usually between 70 and 80 percent, is near the top of the range in the coming years, Brunner, 58, said yesterday in a interview in Hong Kong.

Barclays Plc, Morgan Stanley and UBS AG are among banks that spread the wealth management units in Asia, booming economies created more millionaires in China, India and Indonesia.

China Construction Bank Corp said this month it will begin offering private banking services in Hong Kong.

Lugano, Switzerland-based BSI entered Hong Kong in 1981, settled in Mexico in 2005 and established a representative office in Shanghai last year. The company, which employs 2,590 people worldwide in 2009, increased its workforce by eight in Asia since last year to 250 now.

The bank plans to add 50 to 70 employees in Hong Kong in late 2011, almost doubling the size of your local computer, according to Esther Heer, deputy executive director of the Asian unit of BSI.

"We intend to have a maximum of 350 to 400 people in the region," said Heer, 53. "We will not put pressure on ourselves that we must recruit every year."

Hiring costs

BSI oversaw 75.4 billion Swiss francs (77.8 billion U.S. dollars) of assets of wealth from November, with Asia accounting for just over 10 percent, according to Brunner. The bank plans to increase the proportion of assets managed in Asia to 25 percent in five years.

The number of millionaires in the Asia-Pacific region grew 26 percent to about $ 3 million in 2009, matching Europe for the first time, according to a study conducted by Capgemini SA and Merrill Lynch Wealth Management. The number of high net worth individuals in China increased 31 percent to 477,000 years past, the report showed.

Wage increases helped to increase the efficiency ratios of income to fund managers in Asia and 86 percent in 2009 from 61.8 percent two years earlier, according to data compiled by industry consultants at Boston Consulting Group. The relationship of the Swiss banks increased by 12.9 percentage points to 66.7 percent in the same period.

"Most expensive"

Hiring next year "will be more expensive than 2010. And ensure that 2012 will be more expensive than the 2011 unless there is another major correction," said Brunner. "The good news is the size of the pie is growing, too."

While BSI serves wealthy individuals in Hong Kong of China, is currently barred go directly to the mainland market. The company has not made a final decision on how to expand in China, said Brunner.

"One of the interesting opportunities would land the private banking market in China", he said. "It is very well developed at this time, but within the next five to 15 years will see a very solid, very large banks on private land in China."

China banks are paying twice the interest rate for government funds

China's banks are paying twice the interest rate for government funds than they were a year ago, after higher reserve requirements led to a shortage of cash in the financial system and faster inflation growth damped deposits.

The Ministry of Finance received a 5.4 percent rate for 30 million yuan (4.5 billion) of money six months are offered in a monthly auction yesterday. rates comparable to the auction in December 2009 and January 2010 were 2.35 percent and 2.92 percent.

The demand for government money is being built after the People's Bank of China ordered lenders this month to set aside more deposits as reserves for the sixth time in 2010 as part of a plan to tame the fastest inflation in two years. China's efforts to ensure the stability of its economy led Standard & Poor's to raise China's credit rating yesterday, putting at least five levels above Brazil, India and Russia.

Banks, especially those who have paid deposits aggressively hungry, as they must meet the required 75 percent loan-deposit ratio by the end of year, "said Shi Lei, director of fixed income research in Shenzhen Ping An Co . Securities, a unit of the second largest insurer in China. "The situation is exacerbated by the recent cash crunch in the interbank market following recent increases in reserve ratio.

The repurchase rate seven days rose 45 basis points today to 3.72 percent, the highest since October 2008, according to fixations journal published by the National Center Shanghai interbank funding. This week's increase of 1.23 percentage points is the highest since October 2007. A basis point is 0.01 percentage point.

Auction Rate:

Yesterday's auction rate was the highest in the central bank's data going back to December 2006 and 47 basis points above the 4.93 percent of interest paid on deposits for the duration of government funding in November. Consumer prices rose 5.1 percent from a year earlier last month, the biggest gain since July 2008 and 2.9 percentage points higher than six months deposit rates banks can offer to households.

Yuan Chinese bank deposits rose by 1.1 percent during the past two months, compared with a rate of 3.7 percent growth reported for the period from August to September, official figures show. Loan growth remained stable at 2.5 percent. Year of growth of money supply M2 in China an average of 21 percent in the last 11 months, down from 27 percent in 2009.

Real Types :

"People do not want to save money in banks because real interest rates remain negative, inflation is accelerating," said Chen Jianheng, a bond analyst at China International Capital Corp. in Beijing. "So the growth in total deposits was slower than that of total loans."

The local currency loans outstanding at the end of November were 47.4 trillion yuan, up 60 percent over two years ago, and the money supply has increased by 55 percent during the same period, according to Central Bank figures.

The China Banking Regulatory Commission has asked commercial banks to manage credit risk "with utmost caution and thoroughness," said a statement sent a text message sent yesterday by the regulator.

Contingent liabilities in the banking system were recognized as a risk to the solvency of China in the rating announcement S & P yesterday. These were overcome by "substantial" in the nation's foreign exchange reserves and strong fiscal position, the company said.

long-term rating of China rose to a level of AA-, the fourth highest rank, and Hong Kong was promoted to AAA. Brazil and India have ratings BBB-, the lowest of 10 investment grades. Russia is a step in BBB.

Classification increases

The S & P decision follows a similar move by Moody's Investors Service last month, and simulates a trend in emerging markets, with countries from Indonesia to Brazil to Turkey upgrades or positive outlook.

"The increase in rating will increase China's attractiveness as an investment destination," said Ken Peng, a Beijing-based economist at Citigroup Inc. "The rating may be raised again, but it will take some time," Peng said, citing concerns about stimulus-linked loans could increase banks' bad loans.

China's economic growth last quarter was the fastest among the four countries and their $ 2650000000000 foreign exchange reserves are more than twice those of the other three.

The cost of insuring U.S. dollar denominated debt of the Chinese government for five years rose 1.6 basis points yesterday after ratings upgrade to 69.9, according to CMA prices. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent if the government or the company fails to meet debt agreements.

China Bonds

China's yuan-denominated government bonds fell today, pushing the 10-year debt to yield a minimum of six weeks. The rate at 3.29 percent note due in September 2020 rose two basis points to 3.86 percent, according to the price of the National Interbank Funding Center.

interest rate swaps to a year were little changed at 3.13 percent, data compiled by Bloomberg. The yuan was little changed at 6.6614 per dollar in Shanghai, has strengthened 2.4 percent against the dollar from a plug of two years ending 19 June. Delivery time in twelve months reflect a commitment to advance 2.3 percent next year.

CB Richard Group has doubled to $ 46 billion in the first nine months of 2010 as Aiming cushman & wakefield inc to expand its assets

Cushman & Wakefield Inc. aims to expand its asset management business as the demand for real estate investments in the Asia-Pacific region is accelerating.

"We have about $ 7 billion under management and to the right so we have plenty of room" for growth, President and CEO Glenn Rufrano said in an interview in Hong Kong.

CB Richard Ellis Group Inc world's largest commercial real estate brokerage in the amount of direct investment in the real estate market in Asia has doubled to $ 46 billion in the first nine months of 2010 and reach $ 60 billion million for the full year

"Right now we are growing the investment management business organically, slowly, and trying not to make any mistakes," said Rufrano, when we see an opportunity to grow rapidly, we will consider.

The New York-based company plans to hire 800 people worldwide over the next five years, Rufrano said, adding that most new hires will be in Asia and Australia, where Cushman & Wakefield aims to double the revenue contribution to the group of up to 15 percent during the period.

India, China

A "lot" of revenue growth in Asia come from India and China, said Cushman & Wakefield Asia CEO Sanjay Verma, adding that Hong Kong, Japan and Singapore are still some major business markets in region.

Rufrano was made by Cushman & Wakefield in March after stepping down as head of Centro Properties Group.

Office rents in Asian cities like Hong Kong and Singapore are recovering from the global credit crisis and financial services companies like Citigroup Inc. and HSBC Holdings Plc and resumed the expansion in the region. Citigroup is seeking to nearly triple its workforce in China up to 12,000 people over the next three years, the bank said in August.

Store rents in the region are also improving. Tokyo and Seoul have moved both in an annual survey by Cushman & Wakefield of the world's most expensive shop rents, published in September.

Elena Carletti : markets are very right this time worrying about the current crisis in the euro area

Far from being irrational, markets are very right this time worrying about the current crisis in the euro area.
History threatens to repeat. The first sovereign default recorded in the fourth century C. when 10 of the 13 municipalities in the Attic Greek Maritime Association reneged on loans in the Temple of Delos. Today, it seems increasingly likely that another sovereign default will take place in Greece in the coming years.
How should the euro area to prepare for such an event? The answer: quickly.
The recent proposal by France and Germany for non-sovereign stressed the importance of collective action clauses in debt contracts in the euro zone. These clauses, which make debt restructuring more quickly by forcing bondholders of minorities to accept the terms agreed by the majority of creditors, although substantially include, but are a distraction from what is likely to be the main issue, namely, financial stability.
Collective action clauses are designed to solve the holdouts, the bondholders in which some try to get a better solution is offered. These problems are exacerbated by the sovereign debt in early 1990.
Retrospective laws
Most emerging market sovereign debt was written in the United Kingdom or the law of New York. In the euro area, most are under domestic law. In Greece, 90 percent is subject to local laws. Therefore national governments can act retrospectively by passing a law that makes binding agreements if some bondholders accept the terms of the agreement.
It seems unlikely that the issues of financial stability can be solved so easily. Most banking regulation is the sovereign debt as risk free as there is no need to hold capital against them. After the 2007 crisis, regulators encouraged banks to have more public debt to make sure you have sufficient liquidity and can post as collateral for refinancing operations. The changes are clearly needed. But it may not be desirable to promote the diversification of sovereign debt in the euro area.
Diversification helps reduce risk, but it spreads more widely. In the case of Greece, where the nominal amount outstanding sovereign debt is relatively low, diversification is probably safer because a defect can be absorbed. However, for debt issued by the countries most heavily indebted, like Spain, is more dangerous. Spanish debt is not much around that, if widely held, the failure could bring down the entire banking system of the euro area.
Default Quick
Careful design of the regulation on the basis of the size of holdings in the financial system is necessary. This is just the beginning of the necessary institutional changes.
A sovereign default would have to be done very quickly, otherwise it would create huge flows of capital in the euro area countries perceived as weak to those who are as strong as Germany. It would be difficult to stop this kind of event in anticipation of a default, much less if the bankruptcy proceedings were to take a minimum of six months, as some legal experts have suggested for Greece. Questions concerning the priority of claims, deposit insurance and guarantees for holders of other bank debt, would have to be resolved.
There is an alternative to the cessation of payments in the euro area: A country can only leave the monetary union, temporarily. This would also have to be done quickly to prevent massive capital outflows. The government would have to rename overnight all contracts on a new currency, probably in a ratio of 1 to 1 with the original amounts in euros. There would still be an exchange rate determined by the market between the new currency and the euro.
Out of the euro
It would certainly be dirty details, but the advantage would be that the defaulting government to regain control of monetary policy and, potentially, be able to guarantee the banking system. It would be inflation, but this, along with the devaluation of local currency may help the country to grow exports. A few years after a sovereign nation has its budget deficit and public debt under control, he could reapply to join the euro.
The financial stability issues raised sovereign default in modern financial systems should be the focus of the formal discussion of the euro area. It is somewhat surprising that they have - at least formally - has not been. No easy way out. Time to break taboos.

Bond yields hit a record low in the world market

Bond yields hit a record low in the world market are "susceptible to a sudden reversal," which could put the British bank's profits at risk, the Bank of England said.

Concern for sovereign debt crises can spread, undermining demand for government bonds, and the risk of accelerating inflation may cause whiplash sharp "in bond yields, the BoE said in its report Financial Stability. The bank said such a scenario could destabilize the market as happened in 1994, referring to a bond selloff that occurred when the prospect of rising inflation prompted the Federal Reserve to begin tightening monetary policy. The federal funds rate almost doubled to 5.50 percent this year.

"Increased performance can lead to business losses for banks, even if the assets are liquid," said the report. "Any sudden change in the low rates could therefore be a concern for financial stability and this can lead to a clash of value at risk for banks, resulting in the sale of assets."

policy makers on the market developed, including the Federal Reserve, the Bank of England and European Central Bank has kept its official borrowing costs at historically low levels to support the economy after the financial crisis that followed the collapse of Lehman Brothers Holdings Inc. 's in September 2008.

Loose monetary policies have helped the performance bar short-dated bonds, widening their spreads with longer-term securities. yields on five-year bonds fell to a record low of 1.0148 percent on Nov. 4, while the yield on German notes of two years was reduced to 0.43 percent on May 20, the level lowest since at least 1990.

The three central banks were held to raise official interest rates until the fourth quarter of next year .

"Volatility"

"Low interest rates, combined with the historically strong performance curves have allowed banks to generate substantial interest income, loans at low interest rates in the short term and investing long-term interest rates higher , "the bank said in the report. "Low bond yields have been the intended consequence of the actions of the authorities."

Borrowing costs may begin to increase more rapidly when politicians change their focus on inflation or limit speculation without foundation, the slowdown in growth and contain corporate profits. former Federal Reserve chairman, Alan Greenspan, tight six times in 1994, taking rates to 5.5 percent from 3 percent. The yield on Treasury bonds fell 3 percent as a result, the annual loss for the first time in a quarter century.

While the U.S. bond 1994, settlement increased volatility and affected international financial markets, the bank said it is unlikely that today's economies experience the same magnitude of increase in bond yields, in part because inflation expectations are "better anchored" and demand for the so-called active risk is not as strong as in the past.

"One reason for the increased volatility in 1994 was due to the leverage position of the investors and margin calls faced," the report said. "The derivatives such as structured notes are better understood today, and there are currently weaker appetite for riskier investments. That would be expected to mitigate the impact of blows to the shape of the yield curve."

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Friday, December 17, 2010

Asian stocks rose for the first time in three days & Toyota Motor Corp., sank 0.9 percent

Housing prices in 70 Chinese cities rose 7.7% in November from the previous year

Canadian stocks rose for the first time in four days

Ireland's credit rating was reduced five levels

Jeffrey N. Vinik has invested nearly half of its portfolio of U.S. equities in passive index funds After stocks gain

Republican leaders in Congress are worried about Ben S. Bernanke 's second round of quantitative easing

arrests of three workers that pretend selling secrets about Apple Inc., Dell Inc. and Advanced Micro Devices Inc.

Pimco is backing bank bonds and is betting on U.S. debt bank rally in 2011

current tax rates gives wealthy taxpayers the equivalent of an interest free loan

matchmaker for hedge funds is Caught after Winning 275.500 $ From his work

competition for private bankers to Asia reducing profit margins

China banks are paying twice the interest rate for government funds

CB Richard Group has doubled to $ 46 billion in the first nine months of 2010 as Aiming cushman & wakefield inc to expand its assets

Elena Carletti : markets are very right this time worrying about the current crisis in the euro area

Bond yields hit a record low in the world market

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