WSJ; Norwegian Central Banker Urges Oil Fund to Shift Investments, Less Bonds.

         The Wall Street Journal reports,''Norway's central bank governor said Thursday the nation's massive sovereign-wealth fund should be allowed to increase exposure to assets such as equities and infrastructure and trim back on bonds to find a better balance between improving returns and hedging against risk.

Øystein Olsen said that cutting the bond exposure of the fund, also known as the oil fund, to between 20% and 25% of its holdings from the current 35% could be appropriate''.

"We'll get markedly higher yields in the other asset classes—[such as] real assets, including equities," he said in an interview. "Yes, we'll see fluctuations in those assets, but as a long-term investor we can sit tight through those fluctuations.

"To get to such a share [of 20% to 25% bondholdings], we're talking many years. The advice will come significantly earlier, but to accomplish the target itself will take years," he said.

The $800 billion Norwegian sovereign-wealth fund, the world's largest, has been reducing its bondholdings for some time. The government recently mandated the fund, which is managed by the country's central bank, to invest as much as 5% of its capital in real estate, while reducing bondholdings from 40% to 35%. More than 60% of the fund is in equities.

In recent years, the fund's returns were above normal, in large part because of stimulative actions of major central banks, Mr. Olsen said, as unconventional monetary policies boosted equity prices. Government bond prices also rose and yields fell.

"Looking ahead, low long-term interest rates will feed through into lower returns. It is doubtful that equity prices will continue to advance at the same pace as seen in the past couple of years," he said later in his speech, according to a published draft.

Norway has made several strategic shifts to the oil fund recently, such as allowing it to go on a massive real-estate shopping spree in the U.S. and several European countries, and has also allowed it to reduce its European exposure by shifting more assets into the U.S. and emerging markets. Mr. Olsen didn't rule out further shifts in the distribution.

Asian shares track U.S. gains despite downbeat data

Asian shares rose on Friday while the U.S. dollar struggled to regain traction after downbeat U.S. economic data pushed it to a nearly three-week low against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> added about 0.8 percent. Japan's Nikkei stock average <.N225> erased an initial bounce and pulled back 0.7 percent, as snow blanketed Tokyo and the yen pushed higher.

Australia's main index added about 0.7 percent <.AXJO>, on course to end five consecutive weeks of losses and mark its biggest weekly rise since December 2011.

China's consumer inflation remained at a seven-month low in January while factory gate prices fell for a 23rd consecutive month, broadly in line with market expectations and consistent with other recent data showing economic weakness. This gave investors no reason to expect any change to the central bank's policy stance.

"Inflation is not going to be an issue in China this year," said Tim Condon, an economist at ING in Singapore.

"They don't have to worry about inflation, so they do have the flexibility on the monetary and the fiscal side to stimulate a bit to avert too much of a slowdown. It's good news I think."

On Wall Street on Thursday, investors managed to shrug off the dour U.S. economic data. The Dow Jones industrial average <.DJI>, the S&P 500 <.SPX> and the Nasdaq Composite <.IXIC> all marked gains, despite a storm that battered many eastern states.
U.S. retail sales fell unexpectedly in January, while separate data showed more claims for jobless benefits last week, against a backdrop of unusually bad weather. 

"While some of the softness is likely weather-related, the weakness was broad-based enough to suggest consumption is off to a weaker start in 2014," strategists at Barclays wrote in a note to clients.

"That said, the trend strengthening in real consumption remains, and we maintain our outlook for modest above-trend economic growth in 2014-15," they added, noting that Treasuries nonetheless got a lift from the downbeat data.

The yield on benchmark 10-year Treasury notes stood at 2.737 percent in Asian trade, compared with Thursday's U.S. close of 2.736 percent.

Yields have rallied this week after the U.S. Congress approved an increase in the debt limit and incoming Federal Reserve Chair Janet Yellen maintained the central bank's commitment to gradually withdraw its stimulus.

Against the yen, the greenback's early gains unravelled, and it slumped about 0.1 percent on the day to 102.08 yen , moving away from Thursday's session high of 102.58 yen.

The dollar index <.DXY> slumped about 0.1 percent to 80.274, though it remained above Thursday's low of 80.194, a level last seen on Jan. 24.

The euro was holding steady at $1.3677 , not far from the previous session's high of $1.3692, which was its highest since Jan. 27.

The common currency had a muted reaction to news that Italian prime minister will resign on Friday, opening the way for the country's third administration in a year.

Investors awaited fourth quarter growth data out of the euro zone later on Friday. Analysts polled by Reuters expect slightly faster growth in the 17-nation economy.

In commodities trading, U.S. crude inched up slightly to $100.38 a barrel after skidding on the previous session's dismal U.S. data. Brent crude add about 0.1 percent to $108.60.

Spot gold added about 0.2 percent in Asian trading to $1,306 an ounce, after hitting a three-month high of $1,307.20 earlier in the session.

The U.S. data gave gold futures a lift and helped them post their eighth straight gaining session - the longest winning streak since July 2011.

Source: Reuters

Japan's love hotels see business booming

From rooms kitted out like medical clinics where couples can play "doctors and nurses" to grottos where it is permanently Christmas, Japan's "Love Hotels" cater to almost every taste, offering a few hours of reasonably-priced privacy in a crowded country.

And with the kind of occupancy rates that most hotels can only dream of, even during economic hard times, they are an almost recession-proof business, and a sector that is sure to see a bump over Valentine's Day.One weekday lunchtime at Two-Way, one of many Love Hotels in the lively Tokyo district of Shibuya, only two of the 34 rooms are vacant.
Even the most basic room comes with an ensuite bath, and with a starting price of around 7,000 yen ($70) for the night, it represents good value for money in a country where accommodation can be expensive. A little bit of couple time during the day can be bought for as low as 2,000 yen.
At the higher end, a room will have luxury sheets, the latest flat screen television - complete with a limitless supply of adult entertainment - a game console, perhaps a mirrored ceiling and a deep bubble bath with room enough for two.
In between are rooms to suit every imaginable taste, some more typically kinky, with an array of gags, whips and leather, and some designed to indulge an altogether more innocent fantasy, such as those with a Star Wars theme or done up to resemble medieval European castles.

Source: NewsonJapan

Japan gets in the mood for love this Valentine's Day

Love is all around at this time of year, but on Valentine's Day in Japan it isn't so evenly distributed. The festival of romance has long suffered from a gender imbalance here: Feb. 14 is traditionally a day for women to give presents to men - not just their partners, but also often fellow students, coworkers, family members or other hangers-on (such gifts are aptly termed giri-choko, or "obligation chocolates").

A month later, the fellows are expected to repay in kind, on what's known as White Day - a festival that might feel more meaningful if it hadn't been instituted by the National Confectionary Industry Association in 1978.Maybe that's why Japanese men tend to look forward to Valentine's Day more than their female counterparts. In a recent survey of more than 3,000 people in their 20s and 30s, two-thirds of men reported that they were expecting love to bloom on Feb. 14; in contrast, nearly half of the women answered that they weren't.

Source: Japan Times

Kerry urges Japan, S. Korea to overcome history issues

Visiting U.S. Secretary of State John Kerry said Thursday that Japan and South Korea should improve their relations by overcoming history issues.

He made the remark at a press conference after holding talks with South Korean President Park Geun Hye and Foreign Minister Yun Byung Se.Kerry thus urged Tokyo and Seoul to make headway by the time U.S. President Barack Obama visits the two countries in April.

Source: Jiji Press

China: Dear rose for dear lover

Prices aren’t coming up roses on this Valentines’ Day in China. That’s because the cost of the throned lovers’ blossoms has nearly doubled from 2013 prices due to a freak December snowstorm in Kunming, China’s flower-producing capital. The snowstorm in southwest China killed nearly half of the roses that would have landed in vases across the country. 

Kunming usually supplies 90 percent of China’s and the shortage has sent prices soaring. The cost of a single Kunming-grown rose bloomed to 16 yuan in Shanghai this week, twice as pricey as last year. An imported rose is even pricier. A single imported rose can cost as much as 80 yuan, or 13 US dollars. Flower dealers in Shanghai say 60 percent of the flowers they will sell this Valentines’Day come from abroad. That’s up from just 20 percent last year.

Source: CCTV

Hong Kong: explores the use of underground space

Hong Kong is a city known for its soaring skyscrapers and crowded sidewalks,but now the city is getting creative and exploring the use of underground space to increase land supply for new homes. Cathy Yang walks the campus grounds of the University of Hong Kong, where innovative planning has helped find it new space for its growing number of its students.

This is the University of Hong Kong – one of the world’s top universities, located in the western end of the Southern district. It is Hong Kong’s oldest institute for higher learning. It is also a venue where the city government can learn a few things from – when it comes to increasing land for homes in a city’s that literally running out of space.

Hong Kong University literally went underground – moving reservoirs into caverns – to free up space and accommodate more undergraduates in the campus.

Because the existing campus was located in a built-up area and was already crowded, the University could not construct any new buildings. So they went for the one, innovative option, and you see it right behind me. The University sought approval to relocate these service reservoirs right here into the underground caverns behind me.

Where these three service reservoirs used to be -- is here. And the space that it freed up is where the University of Hong Kong’s new Centennial Campus now stands. It’s made up of three buildings – housing the arts, social sciences and law faculties.

And as Professor Lee Chack-fan of Hong Kong University noted, much to the surprise of many, ‘the campus actually looks nice and green, complete with an array of environmentally friendly facilities.’

And this innovative solution reinforces what Hong Kong Chief Executive C-Y Leung highlighted in his recent policy address, when he referred to the use of underground space in relation to land supply for housing. What Hong Kong University did – may just as well give urban planners and developers a fresh take on how else to address the need to build new homes -- in a city that’s literally running out of space.

Source: CCTV

Myanmar uses int'l gold standard for first time

Myanmar is inviting world investors to join its gold rush. The southeast Asian country announced Wednesday that for the first time it will use international measurement standards to issue gold bars. Myanmar officials say the change will further open their country's gold market to the outside world.

Myanmar will start selling gold with 99.99 percent purity in the international unit, gram, instead of the Myanmar kyat.

Myanmar is awash in a variety of minerals but has kept itself relatively closed to the global gold market. That's because it was using different gold extracting and purifying standards as well as local measurement units. The country also restricted how much gold foreigners could buy.

"Only after people in Myanmar become familiar with and understand such a standard, can the gold produced in Myanmar be sold in the international market. After a period of promotion, more than 60 million Myanmar people will be able to use the standard, and then we can adapt and enter the international market," said U Khin Maung Han of Myanmar Federation of Mining Association.

The end to Myanmar's export ban on selected minerals such as gold won't happen in just one day, though. A 1994 law requires a 30 vs 70 percent profit sharing ratio between a foreign company mining in Myanmar and the government. However, Myanmar plans to loosen restrictions on gold exports in two years.

"Many international investors have entered the country, and they want to buy gold. Whether we can sell or whether they can bring the gold outside of the country will be a big problem. When Myanmar joins the ASEAN Free Trade Area, the government should solve the problem," said Y Kyaw Win, secretary of Myanmar Gold Entrepreneurs' Association.

A Reuters database shows that Myanmar allowed only companies from China, Thailand and South Korea to explore for minerals within its borders as of 2012. Mining companies from Australia and Russia are also involved, but often through third-parties.

Source: CCTV

BOK keeps rate unchanged for ninth month

South Korea's central bank stood pat on rates Thursday. That makes it nine months in a row of unchanged rates.

The Bank of Korea held its base rate steady at 2.50 percent in a widely expected move. But the central bank is expected to start raising interest rates as soon as the third quarter of this year. That's because inflation will likely heat up on the back of sustained economic growth.

The BOK will also keep an eye on China's economic growth and how global markets react to the Fed's stimulus reduction.

A deeper slowdown in China could deal a sharp blow to South Korea because it sends about a quarter of its exports to China.

Source: CCTV

Italian PM to resign, sparking market jitters over economic policies

Italian Prime Minister Enrico Letta said Thursday he would resign the following day, sparking market jitters over the economic policies of a government headed by a new prime minister.

Speculations are high on local media that 39-year-old Democratic Party secretary Matteo Renzi could succeed Letta to head the country's third government in ten months and become the youngest prime minister since the creation of the Italian Republic following World War II.

But the question on the lips of many Italians is whether the new prime minister will be able to pull Italy out of its long-lasting economic malaise.

Angelino Alfano, a junior member of the Letta government, said Renzi's vigor and leadership skills, combined with positive gross domestic product growth numbers for January soon to be released, set the stage for Renzi to hit the ground running.

But the truth is probably less certain: while Italy's economy grew very slightly in the fourth quarter of 2013 and most economists predict positive growth for 2014 as a whole, the economy as a whole has shrunk in per capita terms over the past five years and that is unlikely to change this year.

Unemployment levels remain high in Italy despite the early indications of a gradual economic turnaround, and consumer confidence levels remain near all-time lows.

Recent polls showed Renzi's higher popularity than other political figures in Italy. Polling firm Opinioni reported earlier this month that nearly 60 percent of Italians have a "very positive" or "somewhat positive" opinion of the fiery Tuscan while nobody else is above 40 percent.

Renzi may be banking on his wide support to give him a mandate to push through difficult reforms -- but it remains unclear what those reforms may be.

"The challenges a Renzi government will face are enormous," said Javier Noriega, chief economist with investment bankers Hildebrandt and Ferrar in Milan. "He has said he wants to create jobs and economic growth, but so far we have little indication how he will do that."

It is clear that investors are at least a little nervous about the possibility that the problems may be more difficult than Renzi and his supporters believe.

The news of Letta's imminent departure was widely anticipated, but when it was made official late in the trading day Thursday investors reacted immediately, sending the blue-chip index on the Milan Stock Exchange down by more than 1 percent, while the yield on Italy's benchmark ten-year bond inched higher on secondary markets, closing at 3.80 percent.

The spread -- the difference of the yield from bonds in two markets -- between German and Italian debt widened by an even larger margin, reaching 210 basis points in after-hours trading compared to 201 the day before.

Source: Xinhua

Xinhua: Aston Martin plays "Made in China" blame game

Aston Martin's latest recall again passed the buck for poor quality of products, but this time "Made in China" is just the scapegoat of the glorious carmaker.

British luxury carmaker Aston Martin announced on Feb. 5 the recall of 17,590 cars because of a problem with the accelerator pedal molding, a part from a Chinese supplier.

On Thursday, the People's Daily, flagship newspaper of the Communist Party of China, called the company "unprofessional", saying Aston Martin having no basis to impute the fault to Chinese manufacturers.

The newspaper disclosed on Wednesday that Aston Martin had not stuck by its own supposed "strict standards" in selection and monitoring of its supply chain.

The accused supplier, Shenzhen Kexiang Mould Tool Co., Ltd., denied any direct contract with Aston Martin, which was confirmed by Aston Martin's British headquarters.

The carmaker said its secondary supplier Fast Forward Tooling (FFT) started working with Shenzhen Kexiang in April 2013 and the business only involved some 700 vehicles.

Zhang Zhiang, manager of the small Chinese firm, questioned why the blame fell on his company as the recalled cars were traced as far back as 2007. His company was established in Aug. 2010 and is incapable of taking big orders from the likes of Aston Martin.

He added that his company, with outdated equipment and limited workshop space, only made a few models for FFT around July last year, and had had no further contact.

Further investigation in Hong Kong and the United Kingdom found that FFT was a small office among warehouses and plants in Leicestershire, 160 kilometers away from London, operated by one man with a defunct email address.

Synthetic Plastic Raw Material Co., Ltd. of Dongguan, also accused by Aston Martin of providing material for Shenzhen Kexiang, is not even a registered business.

Aston Martin's manager in Shanghai confirmed to the paper that the investigation was fair, and that the company was dealing with the issue.

A car marketing expert Zhang Zhiyong points out that Aston Martin is obliged to inform consumers of the real cause of any recall, and the company had failed in this duty.

Zhou Zheng, professor of business and economics at the University of Hong Kong, said that enterprises are fully responsible for their product quality, and quality supervision of subcontracted products.

He said that loopholes in choosing suppliers were dangerous for product quality and customers, and passing the buck to Chinese suppliers was unprofessional.

An engineer at China's First Automobile Works told the paper that it was no surprise that Aston Martin chose small suppliers. High-end manufacturers were likely to be interested, considering Aston Martin's low sales volume, but this could not excuse the company's malpractice.

Zhou believes it was a simple cost-saving measure. In modern industry chains, subcontracts are very common and improve production efficiency while lowering cost.

For example, a pair of steering knuckle arms trade for 140 U.S. dollars, but only cost about 200 yuan (32.73 U.S. dollars) to produce in China.

Expanded supply chains created subcontract management challenges, which impose higher quality risks on enterprises.

"Aston Martin's careless choice has damaged its reputation," Zhou said.

Higher levels of technology and quality are the ultimate solution for the unjust stereotype of "Made in China" as cheap and copycat.

Source: Xinhua

Lenovo’s newest earnings report is the envy of both smartphone and PC makers

Things are looking up for Lenovo.

Ahead of its pending acquisition of Motorola from Google, Lenovo (HKG:0992) announced record revenue and profits in Q3 2014. Its latest earnings report boasted US$10.8 billion in revenue, up 15 percent from last year, and $265 million in profit, up 30 percent.

Those numbers have been on a steady rise since Q4 2012. This is the first time Lenovo’s broken the US$10 billion threshold. The only region that didn’t show a significant rise in revenue was Lenovo’s home turf, China.

Lenovo now holds 18.5 percent of global PC market share, its highest recorded ever. Despite a global decrease in PC sales, laptop sales revenue grew 11 percent.

Tablet sales worldwide grew a hefty 326 percent year-on-year, while smartphones gained a solid 47 percent. IDC ranks Lenovo’s global market share fifth in tablets and fourth in smartphones. While its main market is still China, it managed to sell two million smartphone units outside of its home country for the first time. If Lenovo can manage to effectively leverage its upcoming acquisition of Motorola, that number could see a significant increase. Lenovo also wants to re-introduce Motorola as a viable competitor in its domestic market.

Its pending purchase of IBM’s x86 server unit will also push the company immediately to the number three spot in the global server manufacturing sector.

With these two most recent acquisitions, Lenovo has decided to split its business into four separate groups: PC, mobile, enterprise, and ecosystem and cloud.

Source: TECHINASIA

With 350 million registered users, Line looks at mobile commerce for future growth

Generating over $330 million in revenue last year, Line has shown the world how a messaging app can earn boatloads of money. During a visit to Line’s Tokyo office, COO Idezawa Takeshi, revealed that games accounted for 60 percent of its revenue. The rest is split equally between stickers and business services like official accounts and branded stickers on Line.

As its current business model stabilizes, Line is constantly searching for new ways to engage users while continuing to drive revenues. One of its most recent efforts to do so has been in e-commerce. For example, cosmetic brand Maybelline conducted a flash sale on Line in Thailand which saw 500 lipsticks sell out in five minutes. Also in Thailand, Line saw its branded iPhone cases get snatched up under 25 minutes.

Takeshi said that flash sales have been successful for two major reasons. First, Line is primarily a messaging platform which has strong push feature. Second, since Line is primarily used on mobile, flash sales get users’ attention quickly and efficiently. Could the same reasoning be applied to mobile commerce in general? Line certainly thinks so.

With several rounds of successful e-commerce tests under its belt, Line had the confidence to launch Line Mall, a B2C and C2C e-commerce marketplace. Line declined to share data about its Mall application but did say that it will launch in full by March or April. Line Mall is currently available only on Android, but an iOS version is expected to arrive this Spring.

Anyone who uses Line actively is likely to find it fun. Its character sticker sets deliver cuteness in droves. But in addition to just being cute, a sticker can sometimes digitally express an emotion better than thousand words can.

''We admit that the characters might not be popular as time passes and we haven’t thought what to do after that. We can always add in new characters. If there comes a day that the world doesn’t like characters, we will do something else. But LINE isn’t just about stickers. There’s other stuff like music, e-commerce, and manga. We are a platform''

.With over 20 million registered users in Indonesia, Line is confident it can dominate the Indonesian market. Over the past couple of years, the mobile messaging app has blasted TV ads across the country in an effort to acquire more users. It has localized to meet market needs as well. For example, Line in Indonesia is available on feature phones. Sending stickers is as easy as sending an SMS. Takeshi said:

User numbers in Indonesia are growing very well. There are a lot of competition but we are doing really well. Line has a strong chance to be at the top in Indonesia.

Elsewhere, Takeshi also singled out Line’s performance in India, where the chat app reached 16 million registered users, as particularly promising. “There are 800 million mobile users in India. The potential is huge,” said Takeshi.

Outside of Asia, Line is experiencing huge growth in Spain and South America. Only about 14 percent of its 350 million registered users originate from Japan.

Wim Wenders: The Blues L'anima di un uomo

                                           Wim Wenders Documentary about The Blues

Wim Wenders Tokyo-Ga

Wim Wenders Question to Werner Fassbinder and Werner Herzog

                             
                                            Three german film directors in one documentary

Music: Spencer Davis Group "Gimme some Loving"

                         
                                            Steve Windwood keyboards and lead Vocals

Music: Blind Faith "Do What You Like" Live at Hyde Park

Music: How did all ended on British "Blind Faith" Band

Isle Wight Festival 1970 Jethro Tull "Nothing is Easy"

                                           Another unforgettable british band Jethro Tull

Music: Cuban Buenavista Social Club. Eliades Ochoa "El Carretero"

                                             Eliades Ochoa, "El Carretero"
                                       

Music: Buenavista Social Club Ibrahim Ferrer "Candela"

                                        Extraordinary cuban singer and musician Ibrahim Ferrer

Music: Buenavista Social Club Live. Old Glories of Cuban Music

Metaps Platform Apps Surpass 1 Billion Downloads

Tokyo-headquartered app monetization service Metaps announced that the total downloads of apps on the Android monetization platform “metaps” has surpassed 1 billion.

Metaps is an Android monetization platform that supports developers by providing them with the necessary tools and know-how to successfully attract and engage users. The metaps platform consists of the Freemium Ad Network DirectTAP, Exchanger and metaps offerwall products, providing a complete suite of monetization solutions to Android developers.

The rapid growth of metaps platform can be attributed to the company’s expansion to in Asian markets, according to Metaps CEO Katsuaki Sato. Metap has entered into partnerships with LINE and KAKAO. The recent opening of their Shanghai office has also improved implementation of Metaps developer solutions in Greater China.

Last year, Metaps closed $11 million series B round of funding led by Fidelity Growth Partners Japan and now has offices in Japan, US, Singapore, China, Korea, Taiwan and Hong Kong.

Source: TechNode

Italian Prime Minister Letta to Resign Friday; Renzi Seen Taking Over

          The Wall Street Journal reports, "Prime Minister Enrico Letta said he will tender his resignation to Italian President Giorgio Napolitano Friday, following a call from Matteo Renzi, the head of Italy's largest party, for a new government to take power.

Mr. Letta's resignation brings an end to a government that is barely 10 months old and has teetered on the brink of collapse virtually from its birth. It will clear the way for Mr. Napolitano to ask Mr. Renzi to try to form a new government.

Mr. Renzi, the 39-year-old mayor of Florence and a rising star of Italian politics, pulled his support for the government earlier Thursday after months of criticizing the premier for failing to act aggressively enough to combat Italy's protracted economic downturn. In December, Mr. Renzi became head of the center-left Democratic Party, Italy's largest political group, and provided the main support for the Letta government. Mr. Letta also belongs to the party.

In a speech to party leaders earlier Thursday, Mr. Renzi said the country needs to move into "a new phase with a new government."

"We are in a position to turn a new page," he said. "The party thanks the premier for the important work he has done as the head of the government."

Mr. Letta issued a statement saying that "following the decision by the leadership of the Democratic Party, I have informed the President of my intention to tender my resignation as prime minister tomorrow." Mr. Napolitano's office had no immediate comment on Mr. Letta's statement.

Mr. Napolitano is expected to accept Mr. Letta's resignation, after which he would hold consultations with the major parties, possibly starting as soon as this weekend".

Jimi Hendrix Machine Gun Live at Fillmore East

Jimi Hendrix Isle of Wight Live

                                                Jimi Hendrix  Playing Blues

WSJ; China Leads Global Property Bond Sales

               The Wall Street Journal reports"Debt-thirsty Chinese property developers are flocking to the bond market, selling more debt than their North American counterparts combined.

Real-estate companies from the world’s No. 2 economy have issued $7.9 billion worth of bonds so far this year, according to Dealogic data, taking the top spot for a second straight year with 38% of global real-estate bond issuance.

Although the amount is a tad less than the record $8.0 billion sold a year earlier, it exceeds the $7.6 billion sold by U.S. and Canadian property firms so far this year. The U.S. is in the second spot with $5.7 billion, or 27% of total sales".

Companies ranging from major home builder Guangzhou R&F Properties Co. to midsize developer China South City Holdings Ltd.,are taking advantage of yield-hungry investors and a low interest-rate environment to raise cash to acquire land or fund construction costs. Some Chinese developers are borrowing to pay down more expensive debt.

“Chinese developers are trying to capture the window of opportunity to lock in low interest rates before rates begin to rise over the longer term,” said Jacphanie Cheung, credit analyst at Deutsche Bank AG.

Last year, U.S. real-estate companies remained the largest debtors worldwide, accounting for 30% new bonds in the sector, followed by China, which accounted for 26%, according to Dealogic data.

GLOBAL MARKETS-World stocks flat despite soft U.S. data; dollar down

World stock markets were little changed on Thursday after U.S. data suggested slower growth in the first quarter and as corporate earnings forecasts disappointed, while the dollar fell to a two-week low against the euro.

In Europe, shares dipped as investors focused on political uncertainty in Italy, where Prime Minister Enrico Letta defied pressure to make way for the centre-left leader Matteo Renzi. [ID:nL5N0LI1I6]

U.S. bond prices rose after data showed U.S. retail sales fell unexpectedly in January and the number of Americans filing new claims for unemployment benefits rose last week. [ID:nL5N0LI3L6]

Wall Street stocks turned slightly higher after trading down at the open, pressured by a disappointing outlook from Cisco Systems. Cisco shares fell 4.3 percent to $21.86.

"Essentially, it's a story of renewed concern that the recovery in the U.S. may be headed for a speed bump which may be more than weather-related," said Millan Mulraine, deputy head of research and strategy at TD Securities in New York.

In Italy, the stand-off threatens to pull apart a coalition government patched together after last year's deadlocked elections. That would further hamper efforts to turn around the country's sputtering economy.

Italian stocks <.FTMIB> were last down 0.2 percent after dropping as much as 1.2 percent earlier. European stocks snapped a week-long winning streak, with the pan-European FTSEurofirst 300 index down 0.2 percent. [.EU]

Shares of Swiss food group Nestle fell 1.6 percent after it said it may undershoot its long-term growth targets again this year.

The broad MSCI All-Country World Index  was flat, cutting earlier losses, while MSCI's index of emerging market stocks was down 0.9 percent  after rising on Wednesday.

Among still-jittery emerging markets, Ukraine's ongoing woes saw the hryvnia currency and its sovereign bonds tumble. In Nigeria, Africa's second-biggest economy, fresh government sackings left the naira near a two-year low.

The Dow Jones industrial average <.DJI> rose 6.49 points or 0.04 percent, to 15,970.43, the S&P 500 <.SPX> gained 2.15 points or 0.12 percent, to 1,821.41 and the Nasdaq Composite <.IXIC> added 16.688 points or 0.4 percent, to 4,217.976. [.N]


BOND PRICES UP, DOLLAR DOWN

Treasury debt prices rose after two days of losses. Benchmark 10-year Treasuries were up 6/32 in price to yield 2.74 percent. [US/]

The dollar index <.DXY> was down 0.4 percent at 80.494. It fell 0.53 percent against both the yen and euro, to 101.99 yen and $1.3660 respectively. 

Oil prices were lower as well, though Brent's losses were limited by a report from the International Energy Agency (IEA), which said developed world inventories fell by 137 million barrels at the end of last year, for the steepest quarterly decline since 1999. [O/R]

Brent crude was down 39 cents at $108.40 a barrel while U.S. crude oil was down 10 cents at $100.27.

Source:  Reuters

WSJ: BNP Paribas Hit by $1.1 Billion Legal Provision

            The Wall  Street Journal reports, ''BNP Paribas SA, on Thursday became the latest bank to disclose the extent of its litigation problems in the U.S., saying it has set aside $1.1 billion against potential penalties related to transactions in countries under sanctions''.

The French lender said that it had found during an internal probe conducted over the past few years "a significant volume of transactions" between 2002 and 2009 that could be "considered impermissible under U.S. laws and regulations including, in particular, those of the Office of Foreign Assets Control."

"The bank has presented the findings of this review to U.S. authorities and commenced subsequent discussions with them," it added.

BNP didn't give details about its internal probe, notably which countries were involved.

People familiar with the matter said the French bank reviewed transactions involving entities that were doing business in U.S.-sanctioned countries, such as Iran, Cuba, Sudan and Libya during the 2002 to 2009 period. In most cases, BNP provided dollar-denominated financing to companies, both French and non-French.

BNP is a major provider of export financing for the oil and mining industry.

The transactions didn't necessarily get routed through BNP units in the U.S. Yet, the U.S. is asserting jurisdiction simply by claiming that its currency was involved, the people familiar with the matter said.

The surprise provision pushed fourth-quarter net profit down 76% to €127 million ($172.8 million) from €519 million a year earlier, well short of analyst forecasts putting the figure at €959 million.

BNP Paribas is one of several banks that have disclosed talks with regulators about potential sanctions breaches.

It is unclear how much BNP Paribas may need to pay to settle the alleged charges against them.

"There have been no discussions with U.S. authorities about the amount of any fines or penalties," said the bank in a statement. It could therefore be "different, possibly very different, from the amount of the provision," and its timing is "uncertain" it added.

While BNP previously said it was conducting an internal probe into possible U.S. sanctions breaches, the size of the provision took investors by surprise, sending shares down sharply.

"We knew there was a risk, but we didn't expect it to be that big," said Keefe Bruyette & Woods analyst Jean-Pierre Lambert.

As with many other global lenders, muted economic growth and rising legal costs due to greater oversight by regulators have squeezed BNP Paribas's profit.

WSJ: Falling Property Values Hint at Trouble on the Farm

     The Wall Street Journal reports,"Plummeting Prices for Corn Are Threatening a Yearslong Boom for U.S. Growers''.

          " From 2009 to mid-2013, average prices for agricultural land in the U.S. rose by half, while in Iowa, Nebraska and some other Midwest farm states, prices more than doubled, according to U.S. Department of Agriculture data from last August. That helped fuel economic prosperity across the Farm Belt while stoking fears about a possible bubble.

Now there is mounting evidence the boom is fizzling out. Farmland prices in Iowa fell 3% over the second half of last year, and those in Nebraska fell 1%, according to estimates from the Farm Credit Services of America, an Omaha, Neb., lender that calculates weighted averages based on land quality. Reports from U.S. Federal Reserve Banks across the Midwest late last year showed prices flattening or slipping from the previous quarter. A monthly survey of Midwestern lenders by Omaha-based Creighton University in January found the outlook for farmland and ranchland prices was the weakest in more than four years".

Despite the falling property values, agricultural analysts say a repeat of past farm-belt collapses is unlikely. Farmer income is expected to remain strong and debt levels are low, according to USDA figures.

But prices have plunged for corn, a key U.S. crop. After rising to all-time highs in 2012—driven by growing demand and tight supply because of a historic drought—prices for the biggest U.S. crop dropped 40% last year, thanks to a record harvest of 14 billion bushels. The Federal Reserve warned in January that corn prices, then around $4.28 a bushel, won't cover farmers' anticipated cost of raising the crop this year. Prices have since climbed to about $4.40 a bushel, compared with about $8.31 in August 2012.

Soybeans, the nation's No. 2 crop, have also lost value. Meanwhile, with the Fed scaling back its stimulus efforts, buyers of U.S. farmland face the prospect of higher interest rates after years of cheap borrowing.

The shifts have forced farmers to recalculate the value of productive land. Greg Plunk, a third-generation Illinois farmer who added 80 acres to his farm over the past two years, said he would be more careful with further purchases.

The farmland boom began roughly a decade ago. Prices slumped briefly in 2009, amid the recession, then rebounded, thanks in part to historically low interest rates. Overall, values of some fertile Midwestern land nearly tripled over the past decade.

The recent turn has been abrupt. "There was lots of land around here selling for close to $10,000 an acre, but it's tapered off quickly," said Kevin Kremer, 56, an Indiana farmer who recently won a tract of land for roughly $8,800 an acre at an auction in Burnettsville, Ind.

So far, the sputtering growth is prompting more caution than panic. But economists are watching closely. "The question is, if there's a fall, how fast the fall happens," said Nathan Kauffman, Omaha branch executive of the Federal Reserve Bank of Kansas City, who tracks farmland prices.

The economic picture in the Farm Belt is expected to worsen. The USDA forecast Tuesday that U.S. farm incomes will dive 27% this year from 2013, to $95.8 billion, which would be the lowest level since 2010. Last year's total was the highest since 1973 on an inflation-adjusted basis, but the continued slump in grain prices is expected to this year outweigh the benefits of having more corn and soybeans to sell. Still, even with the expected decline, the USDA reckons incomes will remain $8 billion above the previous 10-year average.

Adding comfort, today's agricultural sector looks markedly different than it did during the last farmland bust, in the early 1980s. Then, a roughly 50% drop in land values and rising interest rates led to high levels of debt when viewed as a percentage of farmers' assets. That forced many farmers out of business and spurred failures among dozens of agricultural lenders. Farmers' debt-to-asset ratio is currently estimated at 10.3%, less than half what it was in 1985, according to the USDA.

But a sharp fall in property prices could affect a farmer's balance sheet, said Mr. Kauffman, the economist. "If land values do drop, that could have some important implications for solvency."

Music: Oh Que Sera - Omara Portuondo & Chico Buarque

                                   Brazilian Singer and song writer Chico Buarque with cuban singer
                                   Omara Portuando

Music: Aguas de Março (Aguas de Marzo, Waters of March) Live Bossa Nova

                                     
                                            Tom Jobim And Miucha Live Aguas de Março

Music: TOM JOBIM & ELIS REGINA - AGUAS DE MARÇO

                                         
                                         

Music Pablo Milanes & Silvio Rodriguez "Yolanda"

                                      The popular love song of cuban musician Pablo Milanes

WSJ: U.S. Stock Futures Extend Losses

                       The Wall Street Journal reports, "U.S. stock futures fell, as disappointing economic data and losses in overseas markets weighed on shares".

About 40 minutes ahead of the open, Dow Jones Industrial Average futures declined 98 points, or 0.6%, to 15845. On Wednesday, the Dow fell 31 points, or 0.2%, to snap a four-session win streak.

S&P 500 index futures gave up 12 points, or 0.6%, to 1805 and Nasdaq-100 futures lost 22 points, or 0.6%, to 3603. Changes in stock futures don't always accurately predict stock moves after the opening bell.

The declines followed losses in overseas stock benchmarks, and European shares declined as rising political tensions in Italy gave investors reason for caution.

Stock futures in the U.S. extended losses after a pair of economic reports were weaker than expected. Retail sales fell by 0.4% on the month, more than the 0.1% decline expected, and December's figures were revised lower. Excluding auto sales, retail sales were flat in January, while they were expected to rise 0.1%. There were 339,000 claims for jobless benefits in the latest week, more than the 331,000 expected.

Cisco Systems  slumped 3.2% in premarket trading after the network-equipment maker reported a drop in fiscal second-quarter revenue, led by weakness in its core switching and routing businesses, and said emerging markets remain challenged. The company also raised its quarterly dividend by 12%.

Adam Sarhan, chief executive of New York-Based investment firm Sarhan Capital, said that Cisco's disappointment is a continuation of lackluster investor response to earnings.reports over the past few weeks.

The yield on the 10-year Treasury note edged higher to 2.737%.

Gold futures eased 0.1% to $1,294.10 a troy ounce, after rising for a sixth-straight session Wednesday, while crude oil futures lost 0.7% to $99.65 a barrel to pull back from Wednesday's fourth-month high. The dollar lost ground against the yen and the euro.

In Europe, the Stoxx Europe 600 shed 0.9%, headed for its first loss in seven sessions.

Italy's FTSE MIB led declines, falling 1.5%, amid a renewed bout of political wrangling between Prime Minister Enrico Letta and Matteo Renzi, the newly elected leader of Mr. Letta's Democratic Party, leaving the country's left-right coalition government at risk of collapse. Italian bond yields have risen from the multiyear lows they hit on Wednesday.

Germany's DAX 30 index gave up 0.5%, France's CAC 40 dropped 0.6% and the U.K.'s FTSE 100 lost 0.9%.

Asian markets were broadly lower. Japan's Nikkei Stock Average shed 1.8% as a strengthening in the yen weighed on exporter stocks. China's Shanghai Composite lost 0.6%, pulling back from a 2014 high on Wednesday.

U.S. initial jobless claims rise 8,000 to 339,000

 Initial jobless claims rose by 8,000 to 339,000, the Labor Department reported Thursday. Economists polled by MarketWatch expected claims to fall slightly to 330,000. The four-week moving average was 334,000, an increase of 250 from the previous week's revised average of 333,750.

Source: Marketwatch