WSJ: Gold Fades From Investment Picture?

   According to an article published today in the Wall Street Journal,Russia sold 12,000 ounces of gold in September, the first such sale in a year, according to IMF data.
Central banks sold gold regularly until 2009. As a group, they became net buyers in 2010. The shift was driven by emerging-market central banks, which were grappling with rapidly rising foreign-exchange reserves that were a result of large trade surpluses.

But this year the tide has turned. Because of slowing economic growth and investors' increasing preference for assets in the developed world, these emerging-market central banks have been using cash reserves to stem economic turmoil and support their currencies. That leaves fewer dollars available to buy gold.

Central banks are on track to cut back their gold-buying by 34% in 2013, according to forecasts by metals consulting firm Thomson Reuters GFMS. The retrenchment follows two consecutive years of rising purchases, according to the IMF.

This year through August, central banks increased their gold stockpiles by 6.2 million troy ounces, compared with 9.6 million ounces in the same period in 2012, according to the IMF.

The IMF collects details on gold holdings through voluntary reports from central banks. While the data is considered accurate for most countries, analysts say China's reported reserves of 33.9 million ounces of gold—the world's fifth-highest—likely underestimates the real total. Overall, the IMF estimates central banks own just over one billion ounces of gold, or about 29,000 metric tons.

To be sure, most central banks are holding on to the gold they have bought, and many analysts expect them to continue building their reserves of the metal, if at a slower pace. Prices have begun to creep up off their summer lows, as investors push back the date when they expect the Fed to start tightening. Gold futures were little changed on Monday, closing at $1,352 an ounce on the Comex division of the New York Mercantile Exchange.

Very often in business newspapers you would see arguments for a bearish sentiment in this case for gold, but finally they are not so conclusive in their remarks, leaving open a door for not so bearish sentiments. That's the way they write articles,quoting completely opposite approaches,and ending them with a copywright label,how wonderful  !!

Google construirait un centre de données flottant à San Francisco

Google serait en train de construire un centre de données flottant dans la baie de San Francisco, avance le blog high-tech CNET,Le géant d'Internet, qui n'a pas confirmé l'information, serait en train de bâtir un centre massif de données sur une plateforme flottante qui pourrait produire sa propre énergie à partir des mouvements de la mer.

Selon le journaliste Daniel Terdiman de CNET, un blog affilié à CBS, "même siGoogle n'a pas confirmé le chantier sur l'île de Treasure Island (...), il y a de multiples preuves que le groupe est derrière ce qui se passe dans le Hangar 3 et sur la barge accostée au sud-est de l'île", située entre Oakland et San Francisco.Des photos montrent, dans un chantier à l'accès surveillé, une structure de plusieurs étages s'élevant d'une barge de quelque 80 mètres de long.

Google s'intéresse depuis longtemps au concept de data centers flottants autosuffisants en énergie. Le groupe a déposé un brevet en 2009 pour un système fonctionnant avec des générateurs d'électricité utilisant le mouvement de l'eau, doté aussi d'unités de refroidissement, affirme CNET.

"La structure pourrait-elle être un centre de data flottant ? Un expert à qui nous avons montré les photos le pense, notamment parce que les barges fournissent un accès facile à une source de refroidissement comme d'énergie, c'est-à-dire la mer", affirme CNET, ajoutant que la pratique d'installer des centres de données dans des conteneurs est déjà fréquente.

Le brevet déposé par Google citait la mobilité du centre de données comme un avantage par rapport aux centres de données traditionnels. 

Fonte: Le Monde

Fatal addiction: Authors accuse Apple of destroying Japan's tech industry

Wall Street loves to speculate on whether Apple Inc.'s latest gadget is a winner or a dud. But here in Japan, the tech giant has another constituency desperate to see iPhones disappearing from store shelves: The nation's once-proud electronics producers.

Executives and employees of companies like Sony, Panasonic, Toshiba and Sharp watch Apple with trepidation - not because it is a competitor, but because their livelihoods and the performance of their companies depend on it.

And that's not necessarily a good thing, according to Japanese authors Naoyoshi Goto and Jun Morikawa, who co-wrote the critically acclaimed book Appuru Teikoku no Seitai (The Real Apple Empire).

"Apple is very popular in Japan and it has a great image. But there is a hidden side for contracted firms and workers," Naoyoshi Goto told GlobalPost.

The book's argument: Apple's triumph is partly due to the technology of its component suppliers, who reap big rewards, but face big risks. Low margins on each component sold to Apple are counterbalanced by the sheer volume ordered. Because Apple generates a significant portion of their revenues, the companies find themselves dangerously dependent on its success.

Imagine a situation in which the new iPhone does not sell well.

What happens to the Japanese manufacturers supplying Apple? "They can't survive on their own," Morikawa says.

Apple suppliers - a who's who of former Japanese greats - have seen their market capitalization plummet since the beginning of the century. Profits at these companies have shrunk or disappeared, and investors have lost faith in them.

Take Sony, whose shares are worth around 2,000 yen ($20.56) today, compared to a 16,300 yen all-time high in March 2000. Last year, the company's profit margin shrank to a miniscule 1 percent. By comparison, Apple's was more than 25 percent.

Japanese electronics makers appear incapable of making the world-winning products that they made a generation ago. Even credit agencies are not optimistic about their prospects. Sony's credit rating? Junk. Sharp? Junk. Panasonic? Junk.

Research by Morikawa and Goto shows how in 2012 Japan's electronics giants were using Apple as a life support system.

Some of the figures are staggering.

At Sharp's Kameyama No. 1 factory near Osaka, 100 percent of liquid-crystal display panels were devoted to Apple. Of the camera sensors from Sony's Kumamoto factory, 50 percent were for the US company's devices. Half of the DRAM production at Elpida's Hiroshima factory: for Apple.

Source: NewsOnJapan

Japanese astronaut Koichi Wakata completes final pre-launch tests

Japanese astronaut Koichi Wakata says he wants to get the most from his fellow crewmembers when he takes command of their space mission.

Wakata held a press conference on Tuesday after completing the final pre-launch tests at a training center outside Moscow.He is scheduled to stay on board the International Space Station for 6 months from November. He will serve as the station's commander for the last 2 months of the expedition, becoming the first Japanese to take on the job.
The astronauts will board the Russian spacecraft Soyuz on November 7th to head for the space station.

Source:NewsOnJapan

Govt panel eyes lowering school age to 5

The government's Education Rebuilding Implementation Council will start discussing a plan this week to lower the compulsory school age from 6 to 5 as part of a review of the current school system, it has been learned.

The council, chaired by Waseda University President Kaoru Kamata, also will study a plan to create "compulsory education schools" that would integrate primary and middle school education.

In addition, the council is expected to discuss a plan in which local governments will be allowed to flexibly change the current 6-3-3 system-based on six years in primary school and three years each in middle and high schools-to a 4-4-4 system, for example, on the condition that coordination between primary, middle and high schools will be strengthened.

Under the current system, the compulsory period of education is nine years in total: six years in primary school and three years in middle school.

Source: NewsOnJapan

China coastguard ups pressure in Japan island spat

China on Monday kept up the pressure on Japan over disputed islands, sending its coastguard to the area following Beijing's weekend mention of "war" after Tokyo reportedly readied to down its drones.

In one of its strongest statements so far in an increasingly acrimonious spat over the islands, Beijing said if Japan fired on its unmanned aircraft it "would constitute a serious provocation, an act of war of sorts".

"We would have to take firm countermeasures, and all consequences would be the responsibility of the side that caused the provocation," China's defence ministry said.

Those comments, published Saturday, came after Japanese Prime Minister Shinzo Abe invoked support in Asia for a robust response to what he said was Beijing's attempt to "change the status quo by force".

They also followed reports that Abe had given the okay to a plan to shoot down drones entering Japanese airspace if they did not heed warnings to leave.

Source: NewsOnJapan

TPP talks on intellectual property rights end without progress

Countries involved in Trans-Pacific Partnership free trade negotiations ended an interim meeting on intellectual property rights without progress in Tokyo on Monday, due chiefly to a failure to resolve disputes between the United States and emerging economies.

In a bid to narrow down the key issues on which political decisions will be made at a ministerial meeting in December, the 12 countries plan to hold their next meeting as early as in November to discuss rules on patent and copyright protection, informed sources said.It was the first time for Japan to chair a TPP meeting since it joined the negotiations in July.

Source: NewsOnJapan

Auto tax abolition to increase Japan's CO2 emissions

Japan's annual carbon dioxide emissions will increase if the country scraps the automobile acquisition tax, whose rates are lower for eco-friendly vehicles, the Environment Ministry said Monday.

The abolition of the tax, scheduled for October 2015 in line with the consumption tax's planned rise to 10 pct, will increase Japan's CO2 emissions in 2020 by some 3.9 million tons from the level if the tax were to remain in place, the ministry estimated.

The tax's abolition, aimed at easing the impact of the consumption tax's hike, will lead consumers to turn to vehicles that are not environmentally friendly, according to the ministry.

Source: NewsOnJapan

Gogo to provide Japan Airlines with domestic Internet

Gogo Inc said on Monday it had agreed to provide Japan Airlines Co Ltd with in-flight Internet service on the airline's domestic fleet of 77 aircraft, marking Gogo's first significant international contract, according to the company's chief executive.

Shares of Gogo were up 10.6 percent at $17.94 in afternoon trade in New York on Monday.

The in-flight Internet provider, based in Itasca, Illinois, said the JAL service would use Gogo's satellite technology and begin operating by mid-2014.

The deal is another step in a global race to provide better Internet connections on more planes, especially over oceans, using satellites and aircraft-mounted antennas that swivel as a plane flies to keep tracking the satellite beam.

Gogo's current system is largely ground-based and operates mainly in the United States, where it is the largest in-flight connectivity provider, with about 80 percent market share of WiFi-equipped aircraft.

JAL will be among the first airlines to employ Gogo's satellite system operating in the so-called Ku-band frequencies, Gogo Chief Executive Michael Small said in an interview.

Redesigned Martin Jetpack deliveries expected to start in 2014

The Martin Jetpack being developed by Martin Aircraft Company in New Zealand has undergone a major design overhaul. Reemerging as the P12 prototype, the ducted-fan personal VTOL is fully certified for manned test flights as a Class 1 microlight. The first commercial sales, now expected in mid-2014, will be for first responder applications, such as rescue, fire, and police missions. According to the company, sales to individuals will follow shortly after the initial models are vetted in field use.

The P12 prototype,is described by Martin Aircraft Company’s CEO, Peter Coker, as a “huge step up” from the previous prototype. “Changing the position of the jetpack’s ducts has resulted in a quantum leap in performance over the previous prototype, especially in terms of the aircraft’s maneuverability,” says Coker.

Current performance numbers include a maximum airspeed of 74 km/h (46 mph) with normal cruise speed a more sedate 56 km/h (35 mph). A full tank of premium gas (with added oil) will keep the lucky pilot aloft for 30 minutes, during which time the Jetpack can travel about 30 km (20 mi). At its rated takeoff weight of 330 kg (725 lb), the ducted fans can supply an excess 50 kg of thrust, resulting in snappy changes in altitude.

The Jetpack's ceiling is 3000 ft (900 m), and it is recommended for operation above 500 ft (150 m) to give the safety systems (including a rocket-deployed ballistic parachute) plenty of time to function. The 95 dB noise level is significant (think loud vacuum cleaner),calling for hearing protection for the pilot in addition to helmet, neck restraint, boots, and fireproof suit.

Martin's present focus is to further refine and improve the jetpack's performance before releasing it for commercial sales. In particular, Martin is altering the engine design to extend the time between required overhaul from the present 200 hours.

The engine is a bespoke design for the Jetpack, with a 2.0 liter displacement that tops out at 200 hp (150 kW) and 180 ft-lb (245 Nm) of torque. Based on a V4 two-stroke design, the weight of the engine was reduced through careful engineering to 60 kg (132 lb). The size of the engine is a tiny 0.5 x 0.45 x 0.3 m (20 x 18 x 12 in).

While the Martin Jetpack will qualify as a microlight aircraft in much of the world, this is not the case in the US, as it is too heavy. It will be a light sport plane, and as such a Sport Pilot's license will be needed to fly the Jetpack. 

While Martin hopes eventually to sell its Jetpack for $100,000 (plus shipping, duties, and taxes) in the US, the initial price is expected to be more in the $150-200K range.

Source:Gizmag

HondaJet's baby jet engine completes FAA certification testing

As airliners have grown bigger, so have the jet engines needed to thrust them into the air. We're now at the point where the words “jet engine” conjure up something with a maw big enough for a Mini Cooper to easily drive through. But not every jet aircraft is a double decker people carrier and not every engine is a behemoth. On Thursday, General electric announced that the HF120 jet engine it’s co-developing for the HondaJet completed its US FAA certification testing – and its fan aperture is only 18 inches (45.7 cm) across.
The HF120 may be small but, according to GE, it can still put out 2,095 lb of thrust. A variant of the Honda HF118, it’s the first turbofan produced by the joint venture GE Honda Aero Engines. It uses a wide-chord swept fan feeding a two-stage, low-pressure compressor and a counter-rotating, high-pressure compressor with a titanium impeller. Honda had been developing similar engines since 1986 and the final version was produced in collaboration with GE. GE says that the lightweight design not only exceeds business jet environmental standards, but also enjoys improvements in fuel efficiency.
With its distinct over-the-wing twin-engine mount, the HF120 is an integral part of Honda’s first business jet, HondaJet; the first six production versions of which are currently under construction by Honda Aircraft. Under development for the last decade, it’s designed to carry up to six passengers and has a 12.15-m (39.8-ft) wingspan and overall length of 12.7 m (41.6 ft). It also boasts a cruising speed of 778 km/h (483 mph, 420 knots) and a range of 2,593 km (1,611 mi, 1,400 nmi).
Its airframe design is claimed to reduce cabin noise and ground-detected noise as well as providing more cabin space and greater cargo capacity.
GE anticipates receiving final FAA approval for the HF120 this year and will begin full production in 2014. After numerous delays, some related to the engine, the HondaJet is also expected to receive FAA certification in 2014.

Source:Gizmag,GE
       

Shanghai FTZ reform in full swing

China's first experimental free trade zone (FTZ) in the economic hub of Shanghai has forged ahead since it opened a month ago, turning a new page for the world's second largest economy.

Since the opening of the China (Shanghai) Pilot FTZ, its service center has been busy with people eager to register companies.

As of Oct. 23, 157 firms, including 135 Chinese and 22 foreign-funded ones, have been registered in the zone. They have a combined registered capital of 829 million U.S. dollars, according to sources with the administration of the service center.

Most of the companies are engaged in trade and service businesses, the sources said.

The service center, which opened on Sept. 29 when the FTZ was launched, processes paperwork under a more streamlined and unified procedure.

Business license approvals, which used to take about one month, can now be offered within four working days, said Fang Yushu, who has registered his insurance company.

The zone has become a hit, attracting visitors both online and offline.

Since the start of registration services on Oct. 8, the service center has received nearly 2,300 enquiries and registrations each day, while daily visits to the FTZ's website averages 1.8 million.

Experts say the zone will be a testing ground for bolder market-based economic reforms in the upcoming decade so as to further boost economic vitality.

A range of sectors from financial services and medical care to shipping and education will be open for foreign investment.

Source: Xinhua

Chinese tech firms Huawei and Reeko to invest in U.K.

Huawei is to build a $200m (£125m) research and development facility in Britain, with engineers working on smartphone design, software and broadband technologies. The location has yet to be announced, but the centre will boost Huawei’s British engineering headcount to 300 by 2017. Rekoo, which attracts 15 million daily gamers on personal computers and 10 million on smartphones, will become the first high-profile Chinese company to open an outpost in London’s Tech City development.

Source: theguardian

More than 200 enterprises register in Shanghai Free Trade Zone

The Shanghai pilot free trade zone (FTZ) has seen a total of 208 newly registered enterprises since Oct. 1, local authorities announced Monday.

The newly registered enterprises include 188 domestic and 20 overseas-funded ones, according to Shanghai Administration for Industry and Commerce.

Registered capital ranges from 30,000 yuan (4,929 U.S. dollars) to 480.8 million yuan (79 million U.S. dollars), the administration said.

Of the newly registered enterprises, trade and investment-asset management industries had most registrations, 122 and 36 respectively.

The Chinese government officially opened the 29-square-km Shanghai FTZ on Sept. 29.

Testing of a convertible yuan, wider opening of 18 service sectors, a negative list approach in governing foreign investment, among other steps, are expected to unleash economic potential in the zone in the coming two to three years.

Source: Xinhua

DRC Chinese Government thinktank proposes market driven reforms for chinese economy

The Development Research Center of the State Council (DRC), a Chinese government thinktank, has highlighted eight key reform areas in a report ahead of a key plenum of the Communist Party of China (CPC).

The DRC report details eight main reform areas. The areas cover monopoly industries, land, finance, tax and fiscal systems, opening-up, government administration, state-owned assets, as well as boosting innovation and green development.

The report suggests to further widen market access and promote competition in key industries, including to diversify investment in the railway sector, ease access to exploring unconventional oil and gas and relax restrictions for importing crude, refined oil and natural gas.

It also proposes to reform the electricity industry and its pricing scheme, and to re-organize telecommunication enterprises.

It also proposes to reform the electricity industry and its pricing scheme, and to re-organize telecommunication enterprises.

The report offers advice on deepening land reform, suggesting to allow collectively-owned rural and state-owned land to enter the market of non-farmland under necessary planning and regulations.

A reform on the financial system should be promoted, with emphases on lowering the threshold for entering the financial market and further liberalizing interest and exchange rates, the report proposes.

A new round of fiscal and tax reform should be initiated to strengthen fiscal stability and sustainability in the medium- to long-term, including improvements in the social insurance system and a local tax reform featuring property tax and consumption tax.

Source: Xinhua

China criticizes Japan's provocative remarks

China criticized Japan on Monday for repeatedly making provocative remarks and accused Japan of breaking the status quo on the Diaoyu Islands , in response to Japanese leader Shinzo Abe's claims to the same effect.

Abe told troops on Sunday that Japan would not "tolerate the use of force to change the region's status quo" and called for surveillance and intelligence activities in this regard.

"Japanese leaders' provocative comments concerning China demonstrate these politicians' lying techniques and their unscrupulous and guilty conscience," Foreign Ministry spokeswoman Hua Chunying said at a daily news briefing.

She reaffirmed China's Diaoyu Islands stance, which is that they are an inherent part of Chinese territory though they were covertly included in Japanese territories by Japan in 1895 after the first Sino-Japanese War (1894-1895).

"China and Japan agreed to seek a resolution on the Islands issue in the future when diplomatic relations normalized in 1972. The important consensus is a major foundation for the growth of bilateral ties," Hua said.

She voiced China's opposition to Japan's illegal and invalid unilateral move on the Diaoyu Islands.

"It is no one else but Japan itself that is breaking the status quo on the Diaoyu Islands," the spokeswoman said, urging the country to reflect on its deeds, show sincerity and take real actions so as to properly manage and resolve the problems with China.

She reiterated China's determination to follow a path for peaceful development and maintain a peaceful and stable neighborhood. China is committed to resolving territorial disputes through dialogue and consultation while preserving national territorial sovereignty and maritime rights, according to Hua.

Chinese military planes' training over the East China Sea is in line with international laws and practices. It is no cause for concern, she added.

Hua's comments sounded a similar note to those of Defense Ministry spokesman Geng Yansheng, who said on Saturday that Japan's plan to shoot down drones that allegedly infringe into its airspace would be a severe provocation to China and an act of war. He warned that China will take resolute measures to strike back.

Source: Xinhua

China Steel Binge Spurs Record Hiring of Iron-ore Vessels

The jump in chartering reflects average monthly Chinese steel output that’s been about 10 percent higher in 2013, reducing the nation’s ore stockpiles to the lowest for this time of year since 2007. Imports of the raw material into China rose to a record last month. The demand is diminishing the fleet’s biggest capacity glut in three decades, spurring an almost sevenfold surge in rates since Jan. 2 that means ship owners are making money again for the first time in almost two years.

Source: Bloomberg

China: Citic launches First Trust Product backed by rural land rights

A trust company run by CITIC, one of China’s biggest investment firms, has launched the country’s first trust product backed by rural land rights, as Beijing plans land reforms to boost farm productivity and quicken urbanisation. Under the plan, CITIC Trust Co. will lease 5,400 mu (360 hectares) of land from farmers in Suzhou city, China’s eastern Anhui province, and then transfer the land rights to a farming company, according a statement issued by the trust firm.

Source: Reuters

China's Foreign Exchange Reserves at record US$ 3.66 Trillion in September

China’s foreign-exchange reserves rose last quarter by the most in more than two years, a sign the government’s efforts to protect growth attracted money even as developing nations from India to Indonesia saw capital exit. Reserves were a record $3.66 trillion at the end of September, the People’s Bank of China said yesterday in Beijing, up from $3.5 trillion in June. The median projection was $3.52 trillion in a Bloomberg News survey of seven economists.

China: Establishing Market Mechanisms to avoid capacity glut in several industries

China to ban new projects strengthen market in overcapacity plan
Margins in the targeted sectors, which also include shipbuilding, aluminium and glassmaking, have been affected for years by a capacity glut that has left many firms suffering heavy losses and reliant on government subsidy. The long-awaited plan, published by China’s cabinet, said it would focus on “establishing and perfecting” market mechanisms, marking a change of approach after years spent trying to strong-arm the sectors into submission.

Source: Reuters

WSJ: Tech Valuations Stir Memories of 1999, but There Are Some Differences(Always deja vu)

   The Wall Street Journal reports Twitter Inc. plans to go public at a value of $11 billion, without turning a profit. Venture capitalists just valued Pinterest Inc., which generates no revenue, at nearly $4 billion, and an even younger, revenue-deprived company, Snapchat Inc., is angling for a similar price tag.
"It isn't quite 1999, when dot-com companies with scant revenue made initial public offerings and tripled in price on their first days of trading. When that bubble popped in 2000, scores of companies went bust, and millions of small investors suffered losses".

"Now, shares of Internet companies are soaring again, and signs of pre-2000 exuberance can be seen in Silicon Valley and the nearby area. Home prices in San Francisco and surrounding counties rose more than 15% in the past year. Office rents in San Francisco are 23% above their 2008 peak.

Technology and finance veterans say this time is different,and it is. Companies going public are more mature, the leadership teams more seasoned, the business models more proven. Social networks such as Twitter and Pinterest are drafting off the success of Facebook Inc., which sports a market value of $126.5 billion, or about 70 times next year's expected earnings".

'But the current surge is accelerating, aided by some little-appreciated factors. Big companies are scarcely growing, and interest rates remain near zero, boosting zeal for investment opportunities in companies with high-growth potential. Moreover, a federal law enacted last year will allow startups to raise money from smaller investors, opening a vast new pool of potential funding".

"Now, shares of Internet companies are soaring again, and signs of pre-2000 exuberance can be seen in Silicon Valley and the nearby area. Home prices in San Francisco and surrounding counties rose more than 15% in the past year. Office rents in San Francisco are 23% above their 2008 peak.

Technology and finance veterans say this time is different, and it is. Companies going public are more mature, the leadership teams more seasoned, the business models more proven. Social networks such as Twitter and Pinterest are drafting off the success of Facebook Inc., which sports a market value of $126.5 billion, or about 70 times next year's expected earnings.

Tesla, which has reported one profitable quarter since going public in 2010, is valued at $20.6 billion, seven times its expected 2014 sales.

Netflix Chief Executive  told investors in a letter this month that the video service's stock was benefiting from "euphoria" driven by "momentum" investors. Netflix shares have tripled this year.

By most measures, today's tech-stock mania falls well short of the dot-com era. Many of the companies going public have substantial revenue.

"The big difference now, is companies like LinkedIn, Twitter, Facebook have demonstrated an ability to generate sales, and with the exception of Twitter, profits," Mr. Ritter says. In the dot-com days, "there were all sorts of companies going public that were essentially startups."

But investor enthusiasm is filtering down to younger, less-proven companies today, too. Pinterest, an electronic-scrapbook service that began testing ads this month, said Wednesday that it had raised $225 million from venture-capital firms. Pinterest didn't need the money; the company said it hadn't spent any of the $200 million it raised in February when it was valued at $2.5 billion''.

The market of start ups is effervescent once again,the QE monetary policy makes interest rates so low and prod investors to take higher risks with less reward. But that may mean a sharp correction of  the market cap of these companies when interest rates go up.

When the Fed started raising interest rates in late 1999, the Nasdaq bubble popped the following March.

"Another factor: Last year's Jumpstart Our Business Startups Act soon will make it easier for less-wealthy individual investors to back startups. Already, the law has made it easier for financiers to pool money from individuals.

Some people worry that the looser rules may end up hurting small investors. Lynn Turner, a former chief accountant for the Securities and Exchange Commission, says the most-successful venture capitalists back winners only about 20% of the time".

Apple's iPhone Sales Jump But Profit Falls

   The Wall Street Journal  reports that Apple sold 33.8 million iPhones in the September quarter, up 26% from a year earlier but not enough to prevent a third consecutive quarterly decline in earnings.
The Cupertino, Calif., tech giant reported net income for the fourth fiscal quarter ended Sept. 28 of $7.51 billion, or $8.26 a share, down from $8.22 billion, or $8.67 a share, a year earlier. Revenue was $37.47 billion, compared with $35.97 billion last year.

The company's shares slid 3.8% to $512 in after-hours trading.

Analysts on average had expected Apple to report a profit of $7.96 a share on revenue of $36.9 billion, according to surveys by Thomson Reuters.

Analysts had expected Apple to sell about 34.5 million iPhones. Apple released two new iPhones, the 5S and 5C, near the end of the quarter.

The company sold 14.1 million iPads, compared with analyst expectations of about 15 million devices. Apple sold 14.6 million iPads in its third quarter.

Apple projected revenue for its first fiscal quarter, which includes the holiday shopping season, of $55 billion to $58 billion, compared with average analyst expectations of $55.7 billion. The company also said it expects gross margin of 36.5% to 37.5%, under the 37.8% analysts were expecting.

The company's results, and more importantly its guidance, give the clearest indications yet of the health of its business. Apple has been strategically expanding its product lines over the past couple of years, offering multiple versions of the iPhone and iPad.

The iPad Mini, a smaller cousin to the standard-sized iPad, has become the world's biggest-selling tablet, but theiPhone 5C, a lower-end companion to the iPhone 5S, doesn't appear to have become as popular. Earlier this month, The Wall Street Journal reported Apple had reduced orders to assemblers for its iPhone 5C, while increasing orders for the 5S. The 5C is plentiful at many retailers while the 5S is often hard to find.

Chinese overseas acquisitions

For more on Chinese overseas acquisitions, we're joined in the studio by my colleague Wu Haojun.

Wang: Investment by Chinese companies overseas is actually nothing new. But what seems to be new here is that we’re seeing more and more private companies like Meijing Group buying assets that have nothing to do with natural resources. Tell us more about that.

Wu: Yes, you’re absolutely right. It wouldn’t be an overstatement to say natural resources was pretty much all that China cared about in terms of overseas deals in the past. BUT, as the Chinese economy matures, so do investment targets. Now we’re increasingly seeing non-state owned companies in industries like technology, real estate and food buying assets overseas. Private or non-state-owned publicly listed companies first began exploring overseas deals en masse in 2004. 45 deals valued at 3.7 billion dollars were struck that year. So far this year, 238 overseas deals valued at over 24 billion dollars have been struck by China’s private companies. Just to name a few, there’s the 7.1 billion dollar acquisition of American pork producer Smithfield by Shuanghui. There’s also personal-computer maker Lenovo, who said it’s considering a bid for the struggling BlackBerry.

Wang: What can you tell us in terms of the government’s involvement in these overseas acquisitions? Is it helping these private companies?

Wu: Well, it’s fair to say that without government support, a lot of private companies simply wouldn’t have been able to pull off these deals. Last year, 10 government departments jointly issued what they called “opinions” about actively encouraging private companies to make acquisitions abroad. This included one detailed regulation which relaxed certain aspects of foreign exchange control, which is tied to outbound investments. And these opinions had a clear impact. Analysts point to Shuanghui’s takeover of Smithfield as the best example of this. The state-owned Bank of China was quick to offer up 4 billion dollars of financing. And this isn’t an isolated case. The Industrial and Commercial Bank of China provided a total of 15.8 billion dollars in loans, JUST for the first half of this year, to finance overseas acquisitions by private companies.

Source: CNTV,Xinhua.

New ion engine could reach Mars in 39 days

Last week, as the world celebrated the first lunar landing, Apollo 11 astronauts Buzz Aldrin and Michael Collins both called for NASA to make Mars its next goal. But the chemical propulsion system that took them to the moon would take six months, at least, to get a man to Mars and cost hundreds of billions of dollars. However, a new ion plasma rocket being developed by another former astronaut, Franklin Chang-Diaz, could potentially reach Mars in just 39 days using a fraction of the fuel.
The problem with traditional rockets is that they’re terribly inefficient. About 90% of a mission’s initial weight is fuel, most of which is burned up escaping earth’s gravitational pull. After that, a traditional rocket could only slowly coast to Mars. Very slowly.
A chemical rocket has a relatively low specific impulse of 450 seconds - in other words, it gets one pound of thrust from one pound of fuel for 450 seconds.

Former astronaut Franklin Chang-Diaz’s prototype, however, promises specific impulses as high as 15,000 seconds. How? Well, his rocket doesn’t achieve propulsion by combusting fuel but, rather, by superheating atoms to create and expel a plasma plume.

The Variable Specific Impulse Magnetoplasma Rocket (VASIMR, for short) consists of three linked magnetic cells. The first stage works a bit like a kettle, heating the atoms of a neutral gas like argon with a radio frequency (RF) generator until electrons “boil” off, creating plasma.

The plasma is now very hot – about 50,000 degrees Celsius – but not hot enough to produce efficient thrust. The second stage of VASIMR acts as an amplifier, further energizing the plasma using electromagnetic waves. By now, the plasma reaches about a million degrees, comparable to the center of the sun.

The third and final stage is a “magnetic nozzle” that converts the energy of this superheated plasma into directed motion and, ultimately, high velocity thrust. A magnetic field not only helps heat plasma but also contains it, so it won’t ever actually touch anything.

VASIMR could, theoretically, reach power levels a hundred times that of other ion engines. But there are still two big problems that need to be addressed.

The first is that the 200kW VASIMR only produces a pound of thrust. That’s more than enough in the vacuum of space, where the ion engine can fire continuously for months on end and a pound of thrust can push two tonnes of cargo from the sun to Jupiter in 19 months. But it means VASIMR will never get off the earth on its own – it would need to catch a lift with one of those old gas-guzzling rockets.

The second issue is that, while the current engine can run entirely on solar power – making it perfect for moon trips and other near-earth duties – for a deep space mission, it would need more like 200MW of power. And only an on-board nuclear reactor could provide that.

In the meantime, Chang-Diaz and his colleagues at the Ad Astra Rocket Company (such a wonderfully old-fashioned name) are busy readying VASIMR for a 2012 test with NASA on the International Space Station. It could just be the beginning of a new power in long-distance space travel.

Source: Gizmag

House prices rising in every region in England – Land Registry

House prices in every region of England rose in September, according to official data published on Monday which reignited the debate about the prospects of a new house price bubble.

The Land Registry data showed that even before the government accelerated the second phase of its Help to Buy mortgage guarantee scheme, prices had increased 3.4% in a year on average, and were higher than in September 2012 in all English regions.

But prices in Wales were down by 1.7% year-on-year and fell by 0.4% in September.

Howard Archer, chief UK economist at IHS Global Insight, said: "There is a mounting danger that house prices could really take off over the coming months, especially if already significantly improving housing market activity and rising buyer interest is lifted appreciably further by the Help to Buy mortgage guarantee scheme which will take full effect in January."

Source: theguardian

China's 11th National Women's Congress opens

Chinese women were told at the opening of the 11th National Women's Congress on Monday to "hold up half the sky" in "the great practice of developing socialism with Chinese characteristics."

Wang Qishan, a Standing Committee member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks at the event in the Great Hall of the People in downtown Beijing.

Late Chinese leader Mao Zedong famously encouraged women to "hold up half the sky" in socialist construction, referring to gender equality.

Hundreds of millions of Chinese women have "consciously integrated individual ideals and pursuits into the cause of the Party and the country" under the CPC leadership, since reform and opening up began three decades ago, Wang said.

They have contributed their wisdom and power in the promotion of scientific development and social harmony, he said, expressing hope that women can strengthen socialist convictions and patriotism, and strive to be confident, independent and self-improving.

They are also expected to make new achievements and contributions to promote harmony in families and society by carrying forward the fine traditions of respecting the elderly, loving the young, being frugal and properly bringing up children, according to Wang.

All levels of women's federations should serve women well and safeguard women's and children's rights and interests, the senior official said.

Women in Hong Kong, Macao and Taiwan or living abroad should uphold patriotism and contribute to Chinese development so as to "share the motherland's dignity and glory," he added.

President Xi Jinping, Premier LiKeqiang and other senior leaders including  Zhang Dejiang, Yu Zheng Sheng, Liu Yunshan and Zhang  Gaoli attended the opening of the congress with more than 1,400 women delegates and 100 specially invited delegates.

Held every five years, the congress will hear and discuss a work report by the 10th Executive Committee of the All-China Women's Federation (ACWF), deliberate on and adopt amendments to the federation's constitution, and elect the 11th ACWF Executive Committee before it closes on Thursday.

Source: Xinhua

WSJ: U.K. Recovery Faces Investment Test

  According to a report from the Wall Street Journal,"the U.K. economy has finally broken loose from its stagnation of the past few years. Gross domestic product expanded 0.8% in the third quarter, the fastest pace of quarterly growth since the second quarter of 2010. Growth has accelerated for three straight quarters, again for the first time since 2010. But now comes the real test: Will growth that is being driven by consumption spread to investment?"
"The crisis years have, if anything, increased the dominance of the service sector in the U.K. Services output is now above prerecession levels in real terms, but construction is still 12.5% down from the first quarter of 2008 and industrial production is down 12.8%,ING notes. And in the third quarter, services grew 0.7% while industrial output grew 0.5%.
Typically, this would be the point in a recovery where business investment should pick up. 
Indications are mixed. The third-quarter survey conducted by Deloitte of U.K. chief financial officers showed a record 54% saying that it was a good time to take risk; business confidence has risen and financial and economic uncertainty has fallen. But the CBI's Industrial Trends Survey showed plans for spending on plant and machinery falling in the third quarter, while export orders are only edging higher''.
 The U.K. has followed an agressive expansive monetary policy, with very low interest rates,buying bonds,supporting banks' ability to lend, the  government is providing mortgage subsidies through its Help to Buy program.
  The the risk is for a high inflation and/or a bubble in the housing market

WSJ: Car makers weigh on Europe stocks after downgrade

   According to a report from the Wall Street Journal,The Stoxx Europe 600 index  dropped 0.2% to close at 319.49, adding to a small loss from Friday. The benchmark, however, closed out last week 0.5% higher, for the largest three-week gain since Sept. 20.

Auto makers were among top decliners after J.P. Morgan Cazenove cut the sector to neutral from overweight and instead moved funds to utilities, raising them to neutral from underweight.

"Autos are the best performing sector year-to-date in Europe, up 31%, more than double the performance of the overall market," Mislav Matejka, its chief European equity strategist, wrote in a note. He cautioned that the sector could be vulnerable to some profit-taking in the near term.

"We think that their earnings momentum could be stalling in the near term as PMIs have stopped moving higher," he added.

Shares of Peugeot SA  skidded 5.8% and Renault SA  fell 3.7% in Paris, Fiat SpA dropped 3.2% in Milan and BMW AG  and Daimler AG  both lost 1.5% in Frankfurt.

More broadly, investors were waiting for more signals from the U.S. about when the Federal Reserve could begin tapering its monthly bond purchases before placing any bigger positions. The Federal Open Market Committee meets on Tuesday and Wednesday this week, and most analysts expect no changes to interest rates or the quantitative-easing program

Telefónica, manobra para que a Telecom Italia venda a TIM

Uma disputa travada no conselho da Telecom Italia pode resultar na venda da TIM, segunda operadora de telefonia móvel do Brasil.

A Telecom Italia é dona da TIM e também tem subsidiária na Argentina. Hoje, 80% do caixa sai da matriz.

O Brasil (TIM) contribui com 10%, mesmo peso da filial argentina. A rentabilidade da operação brasileira é quase a metade da italiana.

Nesse cenário, a venda da TIM seria uma das saídas para obter recursos, turbinar a infraestrutura (rede) com fibras ópticas e, assim, preservar a "galinha dos ovos de ouro" --a operação italiana.

A Folha apurou que essa opção é defendida pela Telco, empresa que possui 22,4% da Telecom Italia e é formada por Assicurazioni Generali, Mediobanca, Intesa Sanpaolo e a Telefónica.

Generali e Mediobanca querem sair da empresa e, juntamente com a Telefónica, são contrários à ideia que está no conselho: um aumento de capital de até € 3 bilhões ou um corte de dividendos, que seriam reinvestidos.

Na Telecom Italia, as decisões são tomadas por 15 conselheiros. A Telco possui quatro representantes e dois são da Telefónica. Há ainda sete independentes, que poderiam ser convencidos a optar pela venda da TIM. Somados, teriam poder de decisão. Hoje, não há consenso.

Para testar a força da Telco na Telecom Italia, o Findim Group, um dos acionistas minoritários da operadora italiana, marcou uma assembleia para dezembro. Na pauta está a destituição dos conselheiros da Telco por um suposto conflito de interesse.

Caso não seja aprovada, ficaria explícita a interferência da Telco no comando da Telecom Italia. Assim, os minoritários poderiam pleitear uma oferta de compra do controle da Telecom Italia pela Telco, uma transação de, pelo menos, € 15 bilhões.

Enquanto isso, o Findim trabalha para reunir, entre os conselheiros independentes, votos contrários à venda da TIM e favoráveis ao aumento de capital. Até agora, conseguiu somente 10%.

A Telefónica tornou-se acionista da Telecom Italia em 2007 e, naquela época, o Cade, a autoridade brasileira que defende a competição no país, impôs barreiras. Os espanhóis teriam de se retirar das reuniões da Telecom Italia em que o assunto TIM fosse discutido.

Motivo: a Telefónica é dona da Vivo, líder do mercado de celular no Brasil.

O imbróglio acentuou-se no final de setembro, quando a Telefónica pagou € 325 milhões para ampliar sua fatia na Telco. Saltou de 46,5% para 66% de participação (com ações sem voto) e chegará a 70% em janeiro, comprando as fatias de Generali e Mediobanca.

Essa transação aumentará a influência da Telefónica na Telecom Italia e, por conseguinte, na TIM. O Cade já enviou ofício, cobrando as reais intenções da Telefónica.

O grupo espanhol respondeu que nada mudará, mesmo ampliando sua participação na Telco.

Mas, segundo apurou a reportagem, a ideia da operadora espanhola é assumir o comando da Telco ao mesmo tempo em que o conselho da Telecom Italia decidir sobre a venda da TIM.

Oficialmente, a Telecom Italia afirma que a TIM não está à venda.

Fonte: Fohla de Sao Paulo

Gestão de reservas de Libra deveria ser exclusiva do Estado, diz 'pai do pré-sal'

As reservas de Libra são estratégicas e o Estado deveria ter contratado a Petrobras (que as descobriu) para operá-las em 100%. A opinião é de Guilherme Estrella, 71, considerado o "pai do Pré-Sal" (ele não gosta dessa denominação, pois diz que o mérito é de uma equipe).

Ex-diretor de Exploração e Produção da Petrobras, o geólogo que mapeou a megareserva faz críticas ao leilão realizado há uma semana e alerta para problemas no interior do consórcio que vai extrair o petróleo (Petrobras, a anglo-holandesa Shell, a francesa Total e duas estatais chinesas).

O leilão foi um erro estratégico? Foi lesivo ao país?

Não afirmo que tenha sido um erro estratégico, tampouco que tenha lesado os interesses do país. O que defendo é que a decisão do governo em fazer o leilão de Libra, em vez de contratar diretamente a Petrobrás, como prevê o marco justamente para situações excepcionais --como é Libra--, deveria ter sido discutida com a sociedade e também com a base de apoio do governo no Congresso Nacional.

Nesta discussão, todos os motivos que suportam a decisão do governo seriam conhecidos e a discussão poderia levar a um consenso ou não, caso em que o governo tomaria sua decisão, conforme lhe garante a lei.

Como isto não aconteceu, com os dados e informações que estão disponíveis, construo minha opinião, que é a mesma de muitos outros cidadãos brasileiros: de que, concretamente, a contratação direta da Petrobrás para desenvolver e produzir Libra seria a melhor estratégia brasileira, diante do papel destinado ao Brasil no cenário geopolítico e energético mundial ao longo, no mínimo, desta primeira metade do século 21.

Em momento algum sugeri que ter sócios estrangeiros no Pré-Sal é "inapropriado". O que argumento é que, em se tratando de uma imensa riqueza estratégica concentrada (em Libra) de um produto de tal forma fundamental e sensível para o mundo --e principalmente para as nações hegemônicas mundiais dele dependentes-- a sociedade brasileira tem o dever de discutir a conveniência de tê-las como sócios.

Ninguém desconhece que as grandes empresas petrolíferas mundiais, inclusive a Petrobras, representam e defendem os interesses de seus países-sedes, nos países onde atuam. E neste ponto não se diferenciam empresas estatais ou privadas.

Por que Libra é estratégico?

O caráter estratégico das reservas petrolíferas é inquestionável, como todos sabem. Não se invadem e ocupam militarmente países soberanos para apropriação de refinarias. É possível construir uma refinaria em qualquer lugar do planeta, mas as grandes reservas de óleo e gás estão onde as condições geológicas assim o determinaram. O pessoal da Argélia, do Iraque, da Nigéria, da Líbia, do Egito sabe disto na pele.

O Sudão do Sul foi "fundado" por causa disto. As monarquias medievais, absolutistas e repressoras da Península Arábica são mantidas pelo mesmo motivo: assegurar reservas de petróleo e gás natural às grandes potências hegemônicas ocidentais. Não se está a ver fantasmas! Esta é a realidade fática da geopolítica mundial, escancarada e desavergonhadamente exibida nas últimas três décadas por meio de ações políticas e militares por parte dos países centrais ocidentais. Não há como desconhecer esses fatos.

A turma de topo da Opep controla o preço, mas não tem soberania, autonomia, independência para sustar o suprimento. Simplesmente porque interesses divergentes entre grandes produtores e grandes consumidores não conflitam por causa do preço do barril, mas pelo compromisso dos produtores em suprir incondicionalmente os volumes exigidos pelas economias hegemônicas representadas pelos grandes consumidores.

Gente que estudou o assunto afirma que o barril de petróleo do Oriente Médio sai a mais de US$ 300 para a UE e para os EUA, na condição "all in" dos custos de manutenção militar do status quo daquela região para barrar, pelas armas, qualquer iniciativa que tenda a mudar o quadro atual.

Fonte: Fohla de Sao Paulo

U.S. September Industrial output rises 0.65%,largest rise since February

U.S. September Industrial output rises 0.65%,largest rise since February

Source: Reuters

Samsung and LG release curved phones in same month

Samsung unveiled its Galaxy Round smartphone earlier in October, with a 5.7-inch screen that curves from side to side. Now rival LG has announced its G Flex, although its six-inch screen curves from top to bottom instead.

The latter has been heavily leaked in recent weeks, but was confirmed this morning. It will go on sale in Korea in November with plans to launch it elsewhere in the world at a later date, although no UK release has been confirmed yet.

Why a curved smartphone screen? LG says it aims to reduce the distance between your mouth and the microphone when holding the handset up to your ear, comparing it to traditional telephones in that respect.

LG claims that the curvy form makes calls 3dB louder than flatter handsets, and is also rather ambitiously promising an "IMAX-like experience" when watching video on the device.

"The LG G Flex with its distinctive design, innovative hardware and consumer-centric UX represents the most significant development in the smartphone space since smartphone became part of our regular vocabulary," said LG's mobile president and CEO Dr. Jong-seok Park.

LG is also shouting about the fact that it's not just the G Flex's screen that's curved: its battery is curved too. It also promises a "Self Healing" coating on the rear cover of the device, to see off "daily wear-and-tear scratches and nicks".

Source: theguardian