Thursday, September 3, 2015

Samsung to make new smartwatch available to competition

Samsung to make new smartwatch available to competition


[BERLIN] Samsung Electronics said on Thursday it would make its next smartwatch technology available to its competitors who also use Google Inc's mobile platform Android, hoping to increase its share of the market, which is now dominated by Apple Inc.
The watch will be available as of October, it said at an event in Berlin tied to the IFA, Europe's largest consumer electronics trade show.
Making the new smartwatches compatible with smartphones made by competitors could help sales for Samsung, which saw its market share shrink sharply following the launch of arch rival Apple's Apple Watch.
REUTERS

US: Wall Street rises in volatile session ahead of jobs data

US: Wall Street rises in volatile session ahead of jobs data

[NEW YORK] US stocks ended slightly higher on Thursday as investors, on edge after recent turmoil in China's markets, looked toward a key US jobs report that may figure in the Federal Reserve's decision about when to lift interest rates.
Major US indices at one point rose strongly over 1 per cent but relinquished those gains to dip into negative territory as worries about China's economy weighed on traders' minds, though the Dow Jones industrial average and S&P 500 managed to hold on to end modestly higher.
It was the second consecutive day of increases after over two weeks of China-driven market turmoil that has left the S&P 500 down 9 per cent from its all-time high in May. "After a waterfall decline like we had over a week ago, you can have violent moves both up and down," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. "That's a little of what we're seeing now as well as positioning in advance of the jobs number tomorrow." European Central Bank chief Mario Draghi hinted at additional stimulus measures for the euro zone, helping drive Wall Street's early gains.
His remarks came a day ahead of the monthly US nonfarm payrolls data, which is expected to show that the economy added 220,000 nonfarm jobs in August, up from 215,000 in July.
The combination of a healing US labour market and worries about a stumbling Chinese economy are challenging the Fed as it heads into a policy meeting on Sept 16-17 at which it may raise interest rates for the first time since 2006.
Near-zero rates have allowed the US stock market to stage a spectacular bull-run since the financial crisis. But the market was rocked by volatility in the past two weeks, triggered by fears of slowing growth in China.
Some investors believe the market volatility, which left the S&P 500 with its biggest monthly drop in three years in August, may lead the Fed to delay a rate hike until the end of the year.
The CBOE Volatility index, known as Wall Street's "fear gauge", fell 2.11 per cent to 25.54, slightly above the long-term average of 20. The index spiked as high as 53.29 early last week.
The Dow Jones industrial average rose 0.14 per cent to 16,374.76 and the S&P 500 gained 0.12 per cent to 1,951.13 points. The Nasdaq Composite ended 0.35 per cent lower at 4,733.50.
Eight of the 10 major S&P sectors were higher, with the telecommunications index's 0.77 per cent rise leading the advancers.
Apple was the biggest drag on S&P 500 with a 1.75 per cent drop while Exxon Mobil's 0.76 per cent gain helped push the index higher.
Joy Global's shares were down 14.60 per cent after the mining equipment maker reported a fall in quarterly profit and cut its full-year forecast.
Caterpillar also fell 2.1 per cent and was the biggest drag on the Dow.
Advancing issues outnumbered decliners on the NYSE by 1,964 to 1,066. On the Nasdaq, 1,434 issues rose and 1,363 fell.
The S&P 500 index showed no new 52-week highs and one new low, while the Nasdaq recorded 30 new highs and 42 new lows.
Volume was lighter than in recent days. About 7.1 billion shares traded on US exchanges, compared to an average of 8.5 billion in the past five sessions, according to BATS Global Markets.
REUTERS

New refugee proposals as photos of drowned Syrian boy shock world

New refugee proposals as photos of drowned Syrian boy shock world

[BRUSSELS] European leaders, shocked by the horrifying image of a drowned Syrian child, rushed out new proposals Thursday to address the escalating migrant crisis despite deep divisions in the 28-member bloc.
The heartbreaking images of three-year-old Aylan Kurdi lying dead in the surf after the boat taking his family to Greece sank brought home the horror of the refugee crisis - the worst of its kind since World War II.
With tensions growing in Europe over how to handle the situation, France and Germany said they had agreed that the EU should now impose binding quotas on the numbers that member states should take in, having failed to reach such a deal in June.
"We agree that... we need binding quotas within the European Union to share the burden. That is the principle of solidarity," German Chancellor Angela Merkel told reporters during a visit in the Swiss capital.
European Commission President Jean-Claude Juncker will next week unveil a plan for the relocation of at least 120,000 more refugees to ease the burden on frontline EU nations Greece, Italy and Hungary, a European source told AFP.
EU president Donald Tusk also called on member states to share the resettlement of at least 100,000 refugees - far above the current agreement for 32,000.
In Britain, the Guardian newspaper reported that Prime Minister David Cameron was preparing to respond to growing pressure to accept a bigger share of refugees, by accepting thousands directly from UN camps on the border with Syria.
"Final details of the numbers, funding and planned location are being urgently thrashed out in Whitehall," the Guardian cited government sources as saying.
Cameron earlier promised the country would fulfil its "moral responsibilities", after having only accepted 216 Syrian refugees over the past year. He said the numbers allowed would be kept "under review".
EU foreign ministers are set to meet in Luxembourg on Friday to discuss the escalating crisis, after pressure for action was heightened by the images of the drowned child.
Kurdi was seen in photos in a red T-shirt, blue shorts and shoes and lying motionless on the seashore before a rescue worker picks up his limp body.
"I was holding my wife's hand. But my children slipped through my hands. We tried to cling to the small boat, but it was deflating. It was dark and everyone was screaming," his grieving father Abdullah Kurdi told Turkey's Dogan news agency of the sinking.
Reports said the child - one of at least 12 Syrians who died when their boats sank trying to reach Greece - and his family were trying to get to Canada from the Syrian flashpoint of Kobane after fleeing to Turkey last year to escape Islamic State extremists.
Canada denied it had received an asylum request from the boy's family.
The bleak image spread like lightning through social media and dominated front pages.
"Tiny victim of a human catastrophe," said Britain's Daily Mail while Italy's La Repubblica tweeted the words: "One photo to silence the world." The picture also prompted a furious reaction from Turkish President Recep Tayyip Erdogan.
"European countries, which turned the Mediterranean Sea - the cradle of ancient civilisations - into a migrant cemetery are party to the crime that takes place when each refugee loses their life," he said in a speech.
Turkey is hosting 1.8 million refugees from the conflict in neighbouring Syria.
In Hungary meanwhile, ugly scenes also underscored the desperation of migrants.
Hundreds had rushed into Budapest's reopened international railway station to catch a train only to be left feeling tricked as police halted it on the way to the Austrian border.
A large number refused orders to get off after the train was halted at Biscke near one of Hungary's four main refugee camps, with some protesting, shouting "Germany! Germany!" and holding placards saying "Help" and "SOS".
"The problem is not a European problem, the problem is a German problem," right-wing Hungarian premier Orban, whose country has seen some 50,000 enter the country in August alone, said after talks in Brussels.
Mr Orban said Ms Merkel had insisted that no refugees could leave Hungary without being registered there first, in line with "clear-cut" EU rules that asylum seekers' claims must be dealt with by their initial country of entry.
Berlin said last month it would not deport people who broke that rule but Budapest says that this has encouraged migrants to come through its country.
On a visit to Greece, which has seen the largest number of migrant arrivals in the EU, European Commission Vice-President Frans Timmermans said Europe was facing an "unprecedented humanitarian and political crisis".
Europe is facing a huge influx on all sides, with more than 350,000 people crossing the Mediterranean in flimsy boats this year alone, the International Organisation for Migration says.
EU foreign policy chief Federica Mogherini said the bloc's new naval mission could step up action against people smugglers in the Mediterranean within weeks, seizing and destroying smugglers' boats.
In the Czech Republic, police were criticised for marking the hands of refugees with numbers after detaining them on a train, in a grim echo of Nazi Germany's practice of marking the arms of concentration camp prisoners.
AFP

Indonesia seeks new bids from Japan, China for Bandung rail link

Indonesia seeks new bids from Japan, China for Bandung rail link

[JAKARTA] Indonesia is asking Japan and China for new bids for a major rail link as a US$6 billion high-speed train is no longer seen as commercially viable, the minister coordinating transport policy said.
A 200-kilometer (120 mile) per hour locomotive between the capital Jakarta and the third-biggest city Bandung would be 30 per cent to 40 per cent cheaper than a bullet train, Rizal Ramli said in an interview Thursday with Bloomberg News, his first with international media since taking office last month. The need for new proposals will delay the decision by several weeks, he said.
China and Japan have been lobbying Indonesia's government for the contract for a high-speed train, which would be the biggest infrastructure project started by President Joko Widodo. The president, who took office last year vowing to overhaul railways and ports in the world's largest archipelago, has made little progress.
"We don't need a high-speed train but a medium-speed one," Mr Ramli said after meeting other ministers. "Japan and China are competing very hard, we should let them compete to the maximum." Indonesia wants to develop places on the route to Bandung and a medium-speed train with more or lengthier stops would achieve this better than a high-speed train, Ramli said.
China has been pushing aggressively to sell its rail technology overseas, using it to project diplomatic and economic clout as Premier Li Keqiang inks rail deals on trips around the developing world. That has put China in competition with Japan, which sees high-speed rail as a promising export as Prime Minister Shinzo Abe fights to revive the country's economy.
China's proposal the for Indonesian line involved funding through a Chinese loan and Indonesian state companies, whereas Japan's proposal was to be funded through the Indonesian budget and a low-interest loan from Japan. Ramli said the government doesn't want to use the state budget for the train so it can focus instead on projects outside the main island of Java.
A high speed rail link between the capital and second- biggest city Surabaya was a future possibility, Mr Ramli said. A high-speed train to Bandung could be offered to private companies under a business-to-business agreement without any government guarantees, Transport Minister Ignasius Jonan told reporters.
A high-speed train would cut travel times between the capital and Bandung to about half an hour from the current three hours on a line that winds its way through mountains and rice paddies on Java island.
After more than five years of feasibility studies and high- level lobbying, Japanese officials expected to bring bullet trains to Indonesia, until Indonesia announced in April that it also was talking to China about the project. Jokowi's government has been more open to Chinese investment than its predecessor as it seeks infrastructure funding.
Indonesia estimates it needs to spend US$450 billion on roads, railways, ports and power stations to revive an economy growing at its slowest pace since 2009. The state budget can only cover about 30 per cent of that amount, according to the country's investment board.
BLOOMBERG

UBS diverts US$5 billion of Asia deposits to curb Basel III costs

UBS diverts US$5 billion of Asia deposits to curb Basel III costs

[HONG KONG] UBS Group AG has shifted more than US$5 billion of riskier Asia-Pacific deposits into alternative cash investments as new rules raise the cost of holding them.
The world's largest manager of millionaires' money has helped some clients such as hedge funds move their cash into assets held in structures including special purpose vehicles, according to Alessandro Caironi, head of capital market and banking product sales for Asia Pacific at the Swiss bank's wealth management arm. In return, clients receive securities such as short-term structured notes.
"Clients investing cash in these alternative products done via SPVs get a higher coupon than they normally would," Hong Kong-based Mr Caironi said. "UBS benefits from being able to keep the accounts of these deposit holders, for relationship purposes and potential transactions in future." The global implementation of Basel III capital rules designed to make banks safer is making certain deposits more costly to hold, including those from hedge funds. JPMorgan Chase & Co, Citigroup Inc, HSBC Holdings Plc, Deutsche Bank AG and Bank of America Corp have reportedly told clients that new regulations are making some deposits less profitable, or warned some they'll be charged fees on them.
The Asia-Pacific deposits that UBS has moved into alternative structures are mainly in US dollars and Japanese yen, and the money manager plans to offer other Asian currencies later this month, he said.
"In times of distress, the perception is that hedge funds are likely to withdraw the cash for other uses than let it sit in the bank," said Graham Lim, a partner at law firm Jones Day, whose focus includes banking and finance. "Banks are going to find ways to try to keep this kind of cash." Other solutions for these deposits can include lenders offering better rates for longer lock-up periods, using derivatives such as basis swaps or putting the assets in regulated money market funds which are widely seen as almost as good as cash, Hong Kong-based Mr Lim said.
Besides UBS, Citi has also been selling deposit alternatives to cash-rich clients in Asia. The collaterised fund solutions can earn investors a spread above Libor rates, according to Cyrille Troublaiewitch, head of the US bank's multi-asset group for Asia Pacific.
"So far, we have used this solution for corporates and high net worth clients," Hong Kong-based Troublaiewitch said. "Such a structure isn't a deposit and is therefore not guaranteed by any protection scheme." The new rules may require more preparation for additional or unforeseen risks. Some banks have undertaken analysis to calculate a risk-adjusted deposit value within their portfolios, according to Toby Pittaway, head of corporate and industrial banking for Asia Pacific at management consultancy Oliver Wyman.
"These analyses are being used to inform strategic decisions on how and where to manage down, or up, deposit volumes to optimise costly liquidity regulation requirements," he said.
BLOOMBERG

Canada a petro-economy no more as car exports surpass energy

Canada a petro-economy no more as car exports surpass energy

Manufacturing_equipmentEDIT
Tags: AutosEconomyOilTrade
Energy’s eight-year run as Canada’s biggest export is over.
A Statistics Canada report Thursday showed shipments of motor vehicles surpassed those of energy in July for the first time since 2007, as oil prices plunged and a weaker currency enhanced the competitiveness.
The value of motor vehicles and parts shipped abroad was C$7.6 billion ($5.7 billion), the highest one-month total since 2006. Exports of energy products fell to C$7.3 billion, down 39 percent since the beginning of 2014.
The end of energy’s dominance, at least for one month, will be a relief for policy makers such as Bank of Canada Governor Stephen Poloz and Prime Minister Stephen Harper. They’ve been waiting eagerly for the rebound in non-energy exports that Poloz has said will soon be the “dominant trend” of the economy by the second half of this year.
Poloz had already begun to hedge against that prediction. In July, the Bank of Canada cut its key interest rate for a second time this year to fuel growth, blaming the “puzzling” weak non-energy exports.
Now the pieces appear to be falling into place. Non-energy exports have increased 10 percent in June and July, the biggest two-month gain since 2004.

Schroder Bank pays US$10.4m to avoid US prosecution

Schroder Bank pays US$10.4m to avoid US prosecution

[NEW YORK] Schroder & Co Bank AG will pay a US$10.4 million penalty to avoid prosecution under a US program that requires Swiss firms to say how they helped American clients avoid taxes.
Schroder's penalty is the fourth highest among 33 banks that have settled with the Justice Department this year after disclosing they had reason to believe they committed tax-related crimes related to US accounts. The banks have paid a combined US$308.9 million to receive non-prosecution agreements.
The bank, a unit of London-based Schroders Plc, had 243 US-related accounts totaling US$506 million in 2008, according to the Justice Department.
"Swiss banks continue to lift the veil of secrecy surrounding bank accounts opened and maintained for US individuals in the names of sham structures such as trusts, foundations and foreign corporations," Larry Wszalek, acting deputy attorney general in the Justice Department's tax division, said in a statement Thursday.
"We have invested and will continue to invest considerable resources in systems to support the increasing demands of enhanced international tax reporting," according to a bank spokeswoman.
BLOOMBERG

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