Precious Metals Prices 11.15 p.m. Eastern Time

Gold Price Futures   3 months     US$  1,416.40

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Startups gain appeal as Japan Inc. names fade

In a shabby back-alley office in Shibuya, a Tokyo district known for youth culture and tech ventures, defectors from corporate Japan are hard at work for a little-known company they fervently believe will be the country's next big manufacturing success.

Like a startup anywhere in the world, its bare-bones setup crackles with an optimistic energy and urgent sense of purpose. What's different, for Japan, is that this startup's talent is drawn from the ranks of famous companies such as Mitsubishi, Michelin and Nissan.

Kohshi Kuwahara, 26, worked for more than two years at electronics giant Panasonic Corp. before hopping to Terra Motors Corp., a little-known venture that pays far less but is out to conquer the world with its stylish electric scooters. As with his colleagues at Terra, he recoiled from the hidebound culture of big Japanese companies and felt a deep sense of frustration at their eclipse by rivals such as South Korea's Samsung and America's Apple.

"If you're stuck in a system that promotes just by seniority, it's living a slow death like animals on a farm," said Kuwahara. "I wanted to be in a tough competitive place."

Despite having some of the developed world's least hospitable conditions for starting a new business, the nation's salaryman culture of guaranteed lifetime employment at a household-name corporation is no longer the unquestioned ideal.

Ventures are sprouting again after a decade marred by some high-profile failures and a striking aspect is their focus on manufacturing. Facebook and Google they are not. They are Sony and Toyota, all over again - but with young fresh faces.

Source: NewsOnJapan

Japan irritated by comments from UN's Ban Ki-moon

Japan voiced irritation on Tuesday over comments by UN Secretary-General Ban Ki-moon, who called on Tokyo to face up to the past and improve ties with its neighbours.

Chief Cabinet Secretary, Yoshihide Suga,said he doubted whether Ban was fully aware of the efforts Japan was making towards dialogue with China and South Korea, amid disputes over territory and historical differences.

Suga added that Tokyo would ask Ban, a former South Korean Foreign Minister, to explain what he meant when he urged Japanese leaders to conduct "very deep introspection".

"Prime Minister (Shinzo Abe) has called for dialogue with South Korea and China despite issues of concern," Suga told a regular press briefing.

"I feel a strong sense of doubt as to whether the remark was made with full understanding of our country's position."

Source: NewsOnJapan

Multilateral Effects of Gradual Ending of Bond Buying by U.S. Central Bank will be prominent discussion on G20 meeting

"Sluggish growth and spillovers of the U.S. Federal Reserve's plan to scale back its economic stimulus are expected to feature prominently in discussions at the upcoming leaders' summit of Group of 20 or G20, said Russian organizers of the event Tuesday.

At the St Petersburg summit slated for Sept. 5-6, policy makers will discuss ways to boost sagging economies in both developed and developing countries, which include creating favorable environment for private investment and scaling up investment in infrastructure, said G20 Sherpa Ksenia Yudaeva at a press conference here.

As for possible fiscal strategies G20 leaders would adopt to promote sustainable growth, Yudaeva said there will be "no unified approach" for all countries, as economic situation varies from country to country. But the ultimate goal is same, which is to " improve the fiscal situation in the medium term."

G20 leaders, she said, will adopt plans to assess global risks and set out actions regarding financial and structural reforms and job creation.

On the global financial and economic landscape, Yudaeva said one of the progress made since last year is a more stabilized Europe. Taking into consideration its economic growth momentum, " Europe seems to get out of the recession," she said.

As for the new formula of the International Monetary Fund (IMF) quotas, Yudaeva admitted it was the area where the least progress has been achieved".

China supports the UN investigation of reported use chemical weapons in Syria

Chinese Foreign Minister Wang Yi said on Monday that China supports the UN Secretariat in the investigation of reported use of chemical weapons in Syria.

Wang was responding to a question from Xinhua New Agency on the current situation in the war-torn country.

Syrian opposition groups have claimed that 1,300 people were killed in chemical weapons attacks by government forces on militant strongholds in the suburbs of Damascus last Wednesday. The Syrian government has denied the allegation.

A UN investigation team went to the al-Ghouta region to th east of the Syrian capital Damascus on Monday to start its investigation on the ground.

Wang said China takes a very serious view of the reported use of chemical weapons in Syria.

"China's position is that no matter who uses chemical weapons, we firmly oppose such an action," he said.

He said China supports the UN Secretariat to conduct an independent, objective, fair and professional investigation in accordance with relevant UN resolutions and find out the truth as soon as possible.

Political resolution is the only way out of the Syrian issue, he said, adding that the top priority is to convene a second Geneva conference on Syrian issue at an early date.

China: Important step to Reform Local Government functions

"The Political Bureau of the Communist Party of China (CPC) Central Committee Tuesday vowed to transform local government and push forward institutional reform.

The 25-member political bureau met on Tuesday, chaired by Xi Jinping, Chinese President and general secretary of the CPC Central Committee.

Local government functions are to be transformed and streamlined to establish an administrative system with Chinese characteristics and dovetail with the central government's efforts in this regard, according to a statement issued after the meeting.

The core of the proposed reform is to transform government functions,with the emphasis on further reforming the administrative approval system with the view of continuing to streamline government and delegate power to the lower levels. The institutional reform should focus on prominent issues concerning people's livelihood.

Violations in government staffing should be resolutely investigated and punished.

Effective measures should be taken to ensure various requirements on transforming and streamlining the local government are well implemented so as to let the people feel the actual effect of change brought by the reform, according to the meeting".

U.S. and allies have tough choices in Syria

"U.S. and allies prepare for probable military strike on Syria.Western envoys have told the Syrian opposition to expect a military response soon against President Bashar al-Assad's forces as punishment for a chemical weapons attack last week, according to sources who attended a meeting with the rebel Syrian National Coalition in Istanbul.

One participant said: "The opposition was told in clear terms that action to deter further use of chemical weapons by the Assad regime could come as early as in the next few days."

Obama, Cameron and Hollande face questions at home about how a military intervention would end and whether it risks bolstering Assad if he rides out the assault or empowering anti-Western Islamist rebels if the Syrian leader is overthrown.

Turmoil in Egypt, where the 2011 uprising inspired Syrians to rebel, has underlined the unpredictability of revolutions. The presence of Islamist militants, including allies of al Qaeda in the Syrian rebel ranks, has given Western leaders pause. They have held back so far from helping Assad's opponents to victory.

Syrian Foreign Minister Walid al-Moualem said U.S. strikes would help al Qaeda and called Western leaders "delusional" if they hoped to help the rebels reach a balance of power in Syria.

U. N. chemical weapons investigators put off until Wednesday a second trip to the rebel-held suburbs of Damascus where the chemical attack took place.

While evidence of chemical warfare could bolster an argument for intervention at the United Nations in the face of likely Russian and Chinese opposition, Western leaders and the Arab League have already declared Assad guilty.

Syria's government, backed by Iran, denies gassing its own people and has vowed to defend itself, but residents of Damascus are growing anxious.

Russia, Assad's main arms supplier, opposes military action and has suggested that rebel forces may have released the poison gas. China's state news agency recalled how flawed intelligence was used to justify the U.S.-led invasion of Iraq in 2003''.
Source: Reuters

Lybia's western oilfields closed.Armed Group shut pipeline.

 Libya's largest western oilfields closed when an armed group shut down the pipeline linking them to ports, its deputy oil minister said on Tuesday, reducing its oil output to a trickle.

Total Libyan oil output would be just under 200,000 barrels per day from pre-war levels of around 1.6 million bpd, according to a Reuters estimate, the worst disruption since the civil war in 2011.

The fields - El Feel and El Sharara - linked to the pipeline have a combined capacity of around 500,000 barrels per day.

In the east, striking workers, who had already cut Libyan oil output by over half, want more power for the eastern region, the oil minister said in a television interview earlier on Tuesday. Abdelbari al-Arusi said that output was at 665,000 bpd

Source: Reuters

UMP generated asset price increases and rising capital flows,and appreciation of local curriences in Emerging Markets

"Following the initiation of Unconventional Monetary Policies, we have seen episodes of asset price increases and rising capital flows by one measure, cumulative net flows to emerging markets rose by $1.1 trillion since 2008, squarely above its long-run structural trend by an estimated $470 billion. Corporate leverage and foreign exchange exposures also increased in several cases. Real estate prices have been buoyant, for example, in Brazil, Canada, China, Korea, and Thailand. Stock prices rebounded for a considerable time in China, Mexico and Russia. And credit expanded rapidly in Brazil, China, Korea and Turkey. In recent months, some of these developments have been partly reversed.

These positive trends, of course, are what we would expect, even with conventional policy. Again, it is the recipe of low interest rates and the hunt for return investors search for other opportunities, capital flows into emerging markets, with the usual potential for appreciation and credit growth.

We all know that the situation can turn quickly—as we have seen in recent days in some emerging market economies. These risks require constant monitoring and reassessment"

Christine Legarde

The risks of keeping a very loose monetary policy for a long period of time

 The balance of stability and risk-taking                                                                                  

 "The relationship between the two is not straightforward. Certainly, long periods of very loose monetary policy and ultra-low rates, mixed with the hunt for higher yields could prove to be a recipe for unhealthy risk-taking. At the same time, the absence of UMP could easily have resulted in worse growth outcomes, with even greater risk of financial distress.

 In particular, we will know whether the global market correction earlier this year was a useful reminder that exuberance can go too far, or if it is the start of a new period of choppy conditions and regular scares. We all hope for the former, but prudence suggests planning for the latter possibility.

Some modes of UMP affect the long end of the yield curve, perhaps more so than conventional monetary policy. That would tend to affect a broader range of assets and asset classes than we typically see with conventional monetary policy, and thus creates a risk-taking incentive that could prove worrying".

Christine Legard
Managing Director IMF

The Consumer Confidence Survey of July.Press Release

"The Conference Board Consumer Confidence Index^®, which had declined in July, increased slightly in August. The Index now stands at 81.5 (1985=100), up from 81.0 in July. The Present Situation Index decreased to 70.7 from 73.6. The Expectations Index increased to 88.7 from 86.0 last month.

The monthly Consumer Confidence Survey^®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was August 15.

Says Lynn Franco, Director of Economic Indicators: “Consumer Confidence increased slightly in August, a result of improving short-term expectations. Consumers were moderately more upbeat about business, job and earning prospects. In fact, income expectations, which had declined sharply earlier this year with the payroll tax hike, have rebounded to their highest level in two and a half years. Consumers’ assessment of current business and labor market conditions, on the other hand, was somewhat less favorable than last month.”

Consumers’ assessment of current conditions moderately declined. Those stating business conditions are “good” decreased to 18.4 percent from 20.8 percent, while those stating business conditions are “bad” was virtually unchanged at 24.8 percent. Consumers’ appraisal of the labor market was mixed. Those claiming jobs are “plentiful” decreased to 11.4 percent from 12.3 percent, while those claiming jobs are “hard to get” declined to 33.0 percent from 35.2 percent.

Consumers’ expectations, which had retreated in July, increased in August. Those expecting business conditions to improve over the next six months edged up to 20.1 percent from 19.9 percent. Those expecting business conditions to worsen declined slightly to 11.1 percent from 11.3 percent.

Consumers’ outlook for the labor market remained upbeat. Those anticipating more jobs in the months ahead increased to 17.6 percent from 16.7 percent, while those anticipating fewer jobs edged down to 17.3 percent from 17.7 percent. The proportion of consumers expecting their incomes to increase improved to 17.4 percent from 15.7 percent. Those expecting a decrease declined slightly to 13.5 percent from 13.7 percent".

Source: The Conference Board

Consumer Confidence Survey

Uncertainty of Western military action against Syria shakes world markets

Uncertainty about the possibility of Western military action against the Syrian government hit shares worldwide on Tuesday, sent many emerging market currencies to record lows and boosted assets such as yen and gold.
Dealers said the moves so far, spurred by reports from Washington that a strike may be imminent, were not yet on a huge scale as investors are waiting to see how the situation unfolds.
U.S. Secretary of State John Kerry said Obama was consulting with allies before he decides on any retaliatory strike. While Britain's Prime Minister David Cameron added to the growing sense of imminent action by recalling the country's parliamentarians from their summer break.
The Indian rupee lost as much as 2.5 percent to reach record low of 65.93 per dollar while Turkey's lira weakened to 2.03 to the dollar - both were record lows. Turkey's share index .XU100also slid to a year 
low.

European shares were down 1.2 percent by midday, matching an earlier drop across Asian markets outside Japan . Tokyo's Nikkei 225 ended 0.7 percent lower.

That left the MSCI all-country world equity index  down around 0.5 percent for a second day of falls, though it remains off its lows for the month.

Russia, which as the world's top energy producer normally benefits from stronger oil prices, saw the rouble hit a four-year low against the dollar-euro basket, on concern over the situation in Syria.

As Syria's key ally and arms supplier, Russia has urged Washington not to use military force against President Bashar al-Assad's government. Traders said its response to any U.S. move against Syria  would be key to whether the current shift into safer assets turned into a major flood.

Spot gold rose to its highest since early June around $1,420 an ounce. Gold has rallied more than $200 since late June when prices troughed at three-year lows.

Source: Reuters

Precious Metals Prices 8.56 a.m. Eastern Time

Gold Price Futures     3 months    US$  1,419.04

Silver Price Futures    3 months    US$      24.58

S&P Case-Schiller HPI 0.9% in June

S&P Case-Shiller HPI

Released On 8/27/2013 9:00:00 AM For Jun, 2013 Prior Prior Revised Consensus Consensus Range Actual 20-city, SA - M/M 1.0 % 1.0 % 1.0 % 0.6 % to 1.4 % 0.9 % 20-city, NSA - M/M 2.4 % 2.5 % 2.2 % 20-city, NSA - Yr/Yr 12.2 % 12.2 % 12.2 % 11.3 % to 12.3 % 12.1 %

Home price appreciation is very strong but is a bit less frothy than during the spring. Case-Shiller's 20-city adjusted index is up 0.9 percent in the June report vs an average monthly gain of 1.4 percent from January to May. But the year-on-year adjusted gain, at a very sizable 12.0 percent, is just off its best level of the recovery which is May at plus 12.2 percent. Monthly declines have been popping up in the data for the first time this year but are still isolated and mostly marginal. Year-on-year rates are strongest out West, around the 20 percent area led by Las Vegas at 24.8 percent and San Francisco at 24.4 percent. Note that West coast cities posted some of the sharpest declines during the 2008 meltdown. Cities showing the least gains this year are New York, at a year-on-year plus 3.2 percent, and Cleveland at 3.4 percent. Unadjusted data are followed closely in this report and tell the same story with the year-on-year rate at 12.1 percent for the 20-city index. The unadjusted monthly gain in June, a month when buyer traffic is strong and sellers have pricing power, is 2.2 percent vs a revised 2.5 percent in May. Prices for existing homes are very strong and remain a major plus for homeowners. Next housing data on the Econoday calendar will be tomorrow with purchase applications followed by pending home sales. Source: Bloomberg

Precious Metals Prices 7.15 a.m. Eastern Time

Gold Price Futures      3 months     US$  1,417.50

Silver Price Futures     3 months     US$       24.45

Japan: Consumption tax hike decided before APEC

A Japanese Cabinet minister says Prime Minister Shinzo Abe is likely to make a decision on the consumption tax increase before a summit of the Asia Pacific Economic Cooperation, or APEC, in October.

Economic Revitalization Minister Akira Amari made the comment on an NHK TV debate program on Sunday.

Referring to a consumption tax increase scheduled for next April, Amari said it's best to raise the tax as planned but repercussions should be considered. He said the government will think about temporary or other measures to address potential problems.

Amari said the decision will be made in late September or early October.

Source: NewsOnJapan

U.S. government's debt load is worse than Japan

The national media and economists say that Japan has the highest public debt of any developed nation, but the reality is the U.S. government's debt load is much bigger and much worse.

New research from Markus Jaeger, director of global risk analysis and Deutsche Bank observes: "When assessing public-sector debt sustainability, it would be negligent to disregard implicit government liabilities. Gross and net debt ratios provide merely a snapshot, failing to capture medium-and long-term fiscal dynamics. If one sums up government debt and the implicit debt arising from government pension and healthcare spending commitments (appropriately discounted), the U.S. government's debt is almost twice as large as Japan's and almost three times as large as Germany's."

Source: NewsOnJapan

Major Chinese industrial firms saw their combined profits rise 11.6 % YoY

Major Chinese industrial firms saw their combined profits rise 11.6 percent year on year in July, quickening from the 6.3-percent rate seen in June that points to further evidence of a firming economy, official data showed on Tuesday.

The profits of industrial companies with annual revenues of more than 20 million yuan (3.24 million U.S. dollars) hit 419.55 billion yuan in July, a National Bureau of Statistics statement said.

In the first seven months, their profits rose 11.1 percent to 3 trillion yuan.

Among the 41 industries surveyed, 27 posted year-on-year profit growth during the January-July period, while 11 saw profit decline. Two sectors reported turnarounds in profitability and one reported narrowing losses.

Breaking it down, private businesses led the growth, with their combined profits up 15.4 percent year on year in the first seven months, while state-run enterprises saw profits up 5.5 percent during the period.

Electricity, heat production and the supply industry saw profits jump 73.5 percent in the first seven months, and manufacturers of computers, telecommunication and electronics saw their profits rise 29 percent.

Tuesday's data came after a string of other economic indicators, from factory output and retail sales to foreign trade, showed the world's second-largest economy may be gradually stabilizing after a protracted slowdown. year on year in July, quickening from the 6.3-percent rate seen in June that points to further evidence of a firming economy, official data showed on Tuesday.

The profits of industrial companies with annual revenues of more than 20 million yuan (3.24 million U.S. dollars) hit 419.55 billion yuan in July, a National Bureau of Statistics statement said.

In the first seven months, their profits rose 11.1 percent to 3 trillion yuan.

Among the 41 industries surveyed, 27 posted year-on-year profit growth during the January-July period, while 11 saw profit decline. Two sectors reported turnarounds in profitability and one reported narrowing losses.

Breaking it down, private businesses led the growth, with their combined profits up 15.4 percent year on year in the first seven months, while state-run enterprises saw profits up 5.5 percent during the period.

Electricity, heat production and the supply industry saw profits jump 73.5 percent in the first seven months, and manufacturers of computers, telecommunication and electronics saw their profits rise 29 percent.

Tuesday's data came after a string of other economic indicators, from factory output and retail sales to foreign trade, showed the world's second-largest economy may be gradually stabilizing after a protracted slowdown.

Source: Xinhua

Chinese brands of smartphones had 60% of market share in June

China's domestically-produced smartphones have boomed in sales and recorded more than 60 percent market share at the end of June.

About 130 million domestically-produced smartphones were sold in the first half of 2013, up 115 percent from the same period in 2012.

The leading brands in sales included Lenovo, Coolpad, Huawei and ZTE.

China's smallphones will see a peak sales season from 2013 to 2015 with around 2 trillion yuan (324.15 billion U.S. dollars) in sales volume, said a report from CCID Consulting Co., Ltd., a leading domestic research and consulting company.

Meanwhile, domestic smartphone producers should improve their innovation capacity further, and their profit margins still lagged far behind those of the global brands, the report said.

Source: Xinhua

Precious Metals Prices 10.16 p.m. Eastern Time

Gold Price Futures         3 months     US$ 1,398.12

Silver Price Futures       3 months     US$      24.09

Brazilian Real Weakens by 20 % since May 2013

Brazil's Finance Minister Guido Mantega speaks during a conference with bussinessmen in Sao Paulo, Brazil, on August 26, 2013. The Brazilian real has weakened by 20 percent since May, 2013.

Source: Xinhua

Lagarde: Monetary Policies Have Bought Time, Use It Wisely

The unconventional monetary policies of central banks have bought global policymakers the time and space to carry out the reforms needed to lay the foundation for lasting growth, IMF Managing Director Christine Lagarde told an audience of top officials at the Jackson Hole Economic Symposium.
 "The challenge for today’s generation of policymakers is to rethink and reimagine how to get our economies back to work. One of the most striking aspects of that has been the willingness of central banks in advanced economies to ‘dive into the deep end’ of the policymaking pool.

In many respects, central banks have been the heroes of the global financial crisis. Compared with conventional monetary policy, the unconventional monetary policies(UMP) of the past few years have been bolder in ambition and larger in scale. These exceptional actions helped the world pull back from the precipice of another Great Depression" said Lagarde.

"The crisis also gave us cause to rethink the extent to which the world is interconnected. A bankruptcy in the United States in 2008 brought the world economy to its knees. Then Eurozone troubles shook the global economy again. Another worry today is the risk of a slowdown in emerging markets pulling back growth everywhere.

Unconventional monetary policies bring an added twist. It reminds us that policy actions in one corner of the world can reach all corners—and it is the job of the IMF to shine a light on developments in all corners of the world"

  All policymakers, within countries and across countries—have a responsibility to take the full range of actions needed to restore growth and stability.”

The Merits of UMP So Far:

Were unconventional monetary policies needed and did they help? I know this is an open question for some. The Fund’s clear assessment, however, is that the impact so far has been positive.

Why do I say that? Early in the crisis, UMP helped prevent a collapse of the financial system and a collapse of activity. This was the case with Quantitative Easing in the United States and Large Scale Assets Purchases in the U.K. Later, the ECB’s Long-Term Refinancing Operations and Outright Monetary Transactions significantly reduced the tail risk of a Euro area breakup.

Faced with financial turmoil, UMP helped support economic activity and financial stability—both domestic and global. This is certainly true in the initial phase of UMP, when these objectives worked in unison.

Estimates suggest that quantitative easing, the purchase of assets by the U.S. Federal Reserve, boosted world output by more than 1 percent. Although the major gains were in the early phases, unconventional monetary policy has been a success, she said.

While emphasizing that there should be “no rush to exit,” Lagarde said that the period of exceptionally loose monetary policy must eventually end. But when exactly this happens will depend on country circumstances. “In Europe, for example, there is a good deal more mileage to be gained from UMP. In Japan, too, exit is very likely some way off,” she said.

“One thing we can say for certain: The path to exit will and should depend on the pace of recovery,” Lagarde added.

    Source: IMF Working Paper

Steve Ballmer addio ai Microsoft

LA DIREZIONE -Ballmer, 57 anni, è diventato amministratore delegato di Microsoft il 27 giugno 2008 a seguito delle dimissioni di Bill Gates. Aveva conosciuto il fondatore dell’azienda nel 1973, quando vivevano entrambi nel dormitorio dell’Università di Harvard. Entrato in Microsoft nel 1980, Ballmer aveva portato come dirigente una maggiore disciplina nella gestione del business mettendosi in mostra per la sua capacità commerciale. L’approvazione per il suo lavoro da parte di Bill Gates gli è valsa la successione al fondatore sulla poltrona di Ceo. Non è stato facile per lui guidare l’era post Gates e nonostante qualche flop (Windows Vista), con Ballmer Microsoft è riuscita a difendersi dall’agguerrita concorrenza.
 «Amo questa compagnia, il modo con cui abbiamo contributo a inventare e diffondere il pc e sono orgoglioso dei risultati raggiunti» ha scritto Ballmer nella lettera di addio ai dipendenti. E ha ricordato come in questo tempo l’azienda sia cresciuta da un fatturato di 7,5 milioni di dollari a uno di 78 miliardi, con un numero di dipendenti passato da 30 a oltre 100 mila. Ballmer ha ribadito il proprio legame con il gruppo: «punto a rimanere uno dei più grandi azionisti di Microsoft» ha scritto. E in effetti grazie alle stock option accumulate in questi 33 anni la sua quota ammonta a oltre 333 milioni di azioni (4,2% del totale), la più grande dopo quella di Bill Gates.

MICROSOFT: LA SUCCESSIONE LE DIMISSIONI DEL 57ENNE STEVE BALLMER

Cercasi amministratore delegato per Microsoft. Stipendio annuale stimato: 600 mila dollari. Requisiti necessari: nato negli anni Sessanta, un background solido nella programmazione informatica, esperienza a Redmond, leadership gentile, innovatore con rispetto della tradizione, competenze in campo mobile, cloud computing e social media, foto del primo pc sulla scrivania. Incrociando i profili dei papabili per il ruolo, sembra evidente come la ricerca del nuovo capitano d'azienda di Redmond - dopo l'annuncio delle dimissioni di Steve Ballmer - sia una missione impossibile per il gruppo, che ha nominato una commissione speciale, guidata dal fondatore Bill Gates, per gestire la transizione.

 Il toto-nomi della successione, nella confusione caratteristica della fase, converge su una figura giovane che conosca bene sia croci e delizie dell'azienda sia le nuove sfide del mondo della tecnologia. Uno come Tony Bates: attualmente vice presidente esecutivo di Microsoft e responsabile per lo sviluppo, 46 anni, è «l'evangelista» che ha guidato la divisione di Skype, servizio acquistato per 8,5 miliardi di dollari nel 2011. Bates, un passato in un ex gigante come Cisco, unirebbe l'attenzione per i consumatori richiesta dal nuovo mondo con quella aziendale del «vecchio». Caratteristica che si ritrova anche nell'indiano Satya Nadella, l'uomo che ha portato con successo l'azienda nel cloud computing. Tra gli interni, quotati anche il cinese Qi Lu, vice presidente a capo di Bing, Skype e Office, nominato da Gigaom tra i 10 innovatori del 2010. Qi Lu, ex Yahoo, sta provando a posizionare Microsoft nella ricerca con Bing. I risultati sono ancora modesti (Bing possiede il 12% del mercato) ma tutti scommettono che sia l'unico capace di vincere la sfida. 

L'ex pupilla di Ballmer, Julie Larson Green, 51 anni, vice presidente per il settore dei device, si è guadagnata rispetto nell'ambiente per essere riuscita a tenere testa a Ballmer e al suo ex capo della divisione di Windows Steven Sinofsky (che ha lasciato l'azienda in polemica con Ballmer). Lo scorso maggio alla domanda su una sua possibile sostituzione di Ballmer, Green rispose: «Non lo escludo ma non ho fretta. Richiedimelo tra un anno». Certo, se consideriamo che la ricerca del nuovo ceo, annunciata ieri, in realtà è partita molti mesi fa è possibile che l'opzione interna sia stata già esclusa. Stando alla società di consulenza preposta alla scouting, Heidrick & Struggles, Ballmer e il suo team hanno investito non più di due ore l'anno nell'elaborare un piano di successione. 

Prospettato da molti anche un ritorno in gran stile di personaggi come Paul Maritz, Steven Sinofsky e l'attuale amministratore delegato di Nokia Stephen Elop. Dopo solide esperienze nel mondo della sperimentazione, sarebbero ora pronti per tornare a casa. Maritz in particolare, secondo Michael Cusumano, docente del Mit di Boston e autore di «Microsoft Secrets», è una scelta auspicabile: «È windowscentrico, cosa importante per essere stimato internamente, ma allo stesso tempo ha sperimentato molto fuori da Redmond». Cusumano è convinto che non ci sia bisogno di una rottura totale con il passato, operazione che verrebbe boicottata dalla dirigenza Microsoft «che ha sviluppato negli ultimi 20 anni una fiera corazza reazionaria». «Ci sono personalità così forti all'interno dell'azienda - ha detto al «Corriere della Sera» - che sicuramente ostacolerebbero un cambiamento radicale». Per questo motivo è difficile, secondo il professore, pensare a una scelta esterna e dirompente, così come a un ritorno di Bill Gates: «Ha perso l'abilità per guidare l'azienda alla fine degli anni Novanta» e inoltre non avrebbe interesse a riprendere in mano il timone. 
Nelle ultime ore circolano i nomi di Sheryl Sandberg, chief operating officer di Facebook, e del capo di Netflix Reed Hastings, l'uomo che ha trasformato lo streaming on demand in una gallina delle uova d'oro. Per Cusumano «Sheryl non ha il background giusto per guidare un'azienda come Microsoft ma sicuramente potrebbe darle un'impronta consumer molto forte». Più probabile Hasting, uomo di software ed ex direttore Microsoft. 

Source: Corriere della Sera

China: debt drags on growth

According to the Wall Street Journal

"Nationwide, four-and-a-half years of breakneck growth in lending has significantly increased China's debt burden. Outstanding borrowing by businesses and households rose to 170% of gross domestic product at the end of 2012 from 117% in 2008, according to data from the Bank for International Settlements. The 2012 figure for the U.S. was 157%.
Assuming interest rates of 6.9% on outstanding credit—the average in June—and repayment over the next decade, interest and principal payments on business and household debt currently absorb around a third of China's GDP. At the end of 2007, on the eve of the financial crisis, the equivalent debt-service ratio for the U.S. was 21%, a figure that was broadly unchanged at the end of 2012, according to the BIS.
Bad debt levels in China's banks are low. A high savings rate means bank deposits continue to accumulate, and a tightly controlled capital account makes it hard for funds to go anywhere else.
Even without a crisis, though, rising costs of repayment still threaten to choke growth, already testing a 20-year low. If money is used to service debt, companies can't invest as much as they otherwise would and local governments might have to limit what they spend on crucial public services. Heavily indebted companies and governments are more likely to default, especially if economic growth continues to slow.

A shift to higher interest rates, which could come either in response to an increase in inflation or as regulators liberalize the banking sector, would add to the pressure.

Given existing debt levels, an increase in lending rates of one percentage point would add almost two percentage points of GDP to the annual burden of repayment.

A key fault line is the repayment capacity of China's local governments. Since the 2008 financial crisis, town halls around China have borrowed heavily to pay for a splurge in spending on roads, railway and airports. With many of those projects generating little or no returns in the short term, repayment is a challenge and some local governments are taking on more borrowing to repay existing loans.

In the corporate sector, it is firms in heavy industries , steelmakers like Shougang, aluminum smelters and cement kilns—that have racked up some of the highest debts. Data from FactSet, a provider of financial information, show that net debt for firms in the sector rose to 30 times net earnings in 2012, from 10 times in 2011, as debt continued to mount and profits fell sharply away. Global competitors such as steel firm Arcelor Mittal have substantially lower and more stable debt-to-profit ratios".