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Shanghai Electric Group
26 апреля, 19:01

Event to spur awareness of Chinese brands

SHANGHAI aims to enhance brand awareness of Chinese producers by showing off industrial brands at the China Industrial Brands Tour, officials said yesterday. The Top Brand Shanghai exhibition will feature

26 апреля, 09:49

Shanghai industrial brands are put on show

SHANGHAI launched an exhibition today to showcase local industrial brands, kicking off the China Industrial Brands Tour to help enhance the brand competitiveness of the domestic producers. The exhibition,

20 июня 2016, 19:10

Anchor investors support broker’s IPO

ORIENT Securities has secured the backing of 10 cornerstone investors for its HK$8.95 billion (US$1.15 billion) initial public offering in Hong Kong. The brokerage plans to offer 957 million shares at

19 мая 2016, 10:53

BRIEF-Manz: implementation of capital increase with subscriptions rights on schedule

* Shanghai Electric Germany holding GmbH, subsidiary of Shanghai Electric Group Co., Ltd. exercised subscription rights, transferred by Dieter Manz and Ulrike Manz, for purchase of 906,662 new shares

07 апреля 2016, 19:10

Investor worries over ban expiry hit shares

SHANGHAI stocks declined yesterday for a second consecutive day as investors became worried that a ban on selling of shares by major stakeholders expires today. The Shanghai Composite Index shrank 1.38

29 февраля 2016, 18:31

Компания Shanghai Electric приобрела долю акций в Manz

Китайский производитель энергетического оборудования Shanghai Electric Group договорился о приобретении доли акций в немецкой технологической фирме Manz. Сообщается, что Manz выпустит новые акции, при этом в результате сделки Shanghai Electric будет принадлежать примерно 29,9%-ная доля первой. Кроме того, не исключается, что впоследствии Shanghai Electric полностью поглотит Manz.

29 февраля 2016, 14:46

Компания Shanghai Electric приобрела долю акций в Manz

Китайский производитель энергетического оборудования Shanghai Electric Group договорился о приобретении доли акций в немецкой технологической фирме Manz. Сообщается, что Manz выпустит новые акции, при этом в результате сделки Shanghai Electric будет принадлежать примерно 29,9%-ная доля первой. Кроме того, не исключается, что впоследствии Shanghai Electric полностью поглотит Manz.

10 января 2016, 13:00

Государственный капитализм в современном мире

Финансовый кризис 2008–2009 гг. заставил многие развитые страны мира увеличить долю государства в частных корпорациях. Волна частичной национализации совпала с широкомасштабной экспроприацией частной собственности в развивающихся странах — Венесуэле, Боливии, Эквадоре и Аргентине. Является ли это сигналом к возвращению государственного капитализма? И означает ли такое возвращение поворот к практике крупных неэффективных предприятий, как это утверждают […]

18 января 2015, 12:58

Обзор фондовых рынков за неделю по 16.01

Влияние на рынок:1 По итогам торгов в пятницу фондовые показатели Азиатско-Тихоокеанского региона упали в значениях.Индекс MSCI Asia Pacific показал снижение на 0,6%.Индекс Nikkei из Японии снизился на 1,4% на пятничных торгах. Тогда как гонконгский индекс Hang Seng по результатам торгов снизился на 1%, австралийский индекс S&P/ASX 200 снизился на 0,6%, а южнокорейский KOSPI снизился на 1,4%.Стоит отметить, что китайский индекс Shanghai Composite вырос в цене на 1,2 процента. Показатель завершил на положительном уровне 10-ю неделю подряд, впервые с весны 2007 года.Кроме того, позитивным моментом для акций энергетических компаний Китая стало заявление Си Цзиньпина по факту необходимости повышения конкурентоспособности в сфере производства ядерной энергии. Акции компаний Shanghai Electric Group, а также Dongfang Electric выросли на 3,2% и 1,6%, соответственно.Показатели акций японской фармацевтической компании Chugai Pharma, приобретающей большую часть своей продукции в Швейцарии, снизились на 2,5%.Компания по производству синтетического каучука под названием JSR Corp. потеряла 6% в цене акции из-за слухов о том, что её прибыль за прошедший квартал оказалась гораздо хуже рыночных прогнозов.Акции компании Samsung отступили на 6,3% из-за опасности понижения объёмов иностранных заказов, ориентированных на строительство судов на территории корейских верфей.Квартальный прогноз прибыли, а также валовой маржи компании Intel Corp. разочаровал её инвесторов, тем самым снизив цены на акции компании на 2,9% в среду.За четвёртый квартал выручка от ПК-подразделения, наиболее значимого для компании снизилась на 3% до суммы в $8,9 миллиардов в сравнении с 3-им кварталом. Надо отметить, что в четверг акции подросли на 2,73%, но отступили в пятницу на 0,73%.Индексы S&P500 и Dow Jones закрыли торги в пятницу ростом. Индекс Standard & Poor's 500 прибавил 26,69 пункта (в пересчёте 1,34%), составив в общей сложности 2019,36 пункта. Тогда как индекс Dow Jones 30 подрос на 190,86 пункта (в пересчёте 1,10%) - в общей сложности до 17511,57 пункта. Кроме того, значение индекса Nasdaq Composite выросло на 63,56 пунктов (в пересчёте 1,39%) - в общей сложности до 4634,38 пункта.В пятницу европейские индексы, так же как и индексы США показали рост. Таким образом, индекс Euro Stoxx 50 вырос на 48,95 пункта (что составляет 1,55%), вплоть до 3206,31 п.Британский индекс FTSE 100 прибавил 51,49 пункта (что составляет 0,79%), вплоть до 6550,27 п.Французский индекс CAC 40 поднялся на 56,42 пункта (что составляет 1,31%), вплоть до 4379,62 п.Германский индекс DAX закрылся в пятницу ростом на 135,16 пункта (что составляет 1,35%), до 10167,77 п. .. Источник: FxTeam

19 сентября 2014, 05:41

Второй китайский корпус для AP-1000 установлен в проектное положение

Корпус реактора установлен в проектное положение на строящемся блоке №2 АЭС "Haiyang" в Китае, сообщает "World Nuclear News". Операция, в которой был задействован кран грузоподъёмности 3200 тонн, началась в 1109 12 сентября по местному времени и продолжалась около двух часов сорока минут. Корпус реактора AP-1000 для "Haiyang-2" весит 274 тонны. Его высота - 10,3 метра, диаметр - 6,5 метров. Корпус был изготовлен на предприятиях китайской компании "Shanghai Electric Group". Он стал вторым корпусом для AP-1000, изготовленным в Китае. Пуски первого и второго блоков АЭС "Haiyang" намечены на конец 2015 года и конец 2016 года, соответственно.

14 августа 2014, 06:24

Первый китайский корпус для AP-1000 поставлен на площадку

Корпус реактора доставлен на площадку строящегося в Китае блока №2 АЭС "Sanmen" с реактором AP-1000, пишет "World Nuclear News". Это первый корпус для AP-1000, изготовленный китайскими предприятиями. Корпуса реакторов для первых блоков АЭС "Sanmen" и "Haiyang" были изготовлены компанией "Doosan Heavy Industries & Construction" (Южная Корея). 5 августа 2014 года на площадке прошла торжественная церемония приёмки поставленного корпуса в присутствии китайских официальных лиц. Корпус реактора для блока №2 АЭС "Sanmen" был изготовлен китайской компанией CFHI. Корпус реактора для блока №2 АЭС "Haiyang" изготавливается китайской компанией "Shanghai Electric Group" и в настоящее время на нём завершились гидравлические испытания.

16 июня 2014, 05:11

Китай изготовил первый корпус реактора AP-1000

Китай изготовил свой первый корпус реактора AP-1000. Корпус предназначается для блока №2 АЭС "Sanmen". Изготовлен на предприятии китайской компании "China First Heavy Industries" (CFHI) под наблюдением компании "Westinghouse". Источник сообщает, что корпус успешно прошёл гидравлические испытания 8 июня. Практически одновременно, 21 мая, было завершено изготовление первого китайского парогенератора для AP-1000. Он также будет установлен на блоке "Sanmen-2". Корпуса реакторов для первых блоков АЭС "Sanmen" и "Haiyang" были изготовлены компанией "Doosan Heavy Industries & Construction" (Южная Корея). Часть заготовок для них поставила компания CFHI. Корпус для блока №2 АЭС "Haiyang" изготовит китайская компания "Shanghai Electric Group". В Китае сооружаются четыре блока с реакторами AP-1000. Китайская сторона исходно оговорила последовательный рост локализации при изготовлении оборудования для данных блоков. читать далее

19 ноября 2013, 15:09

Подходит срок банкротства Русала и Дерипаски

  “Dances with Bears”, Ссылка на оригинал Подходит срок банкротства Русала и Дерипаски   Джон Хелмер, Москва   По данным Объединённой компании «Русал», российской государственной алюминиевой монополии, она является одной из самых прозрачных транснациональных корпораций в мире – и это на развивающемся рынке, включающем шестнадцать стран! Доклад зарегистрированной в Берлине организации Transparency International (TI), опубликованный 16 октября, на основании ряда критериев поставил «Русал» на шестое место, присвоив ему идеальный уровень в 100% того, что TI называет «прозрачностью организации». Среди столь же идеальных компаний указаны Emirates Airlines (ОАЭ), Johnson Electric (Гонконг), Petronas (Бразилия) и Shanghai Electric Group (КНР).   По словам представителей TI, суть прозрачности организации «Русала» и остальных компаний вытекает из результатов обработки ответов на нижеуказанные восемь вопросов в составе более длинной анкеты: ---   ПРОЗРАЧНОСТЬ ОРГАНИЗАЦИИ 14. Указывает ли компания полный список своих полностью консолидированных основных дочерних компаний? 15. Указывает ли компания процент своего участия в своих полностью консолидированных основных дочерних компаниях? 16. Указывает ли компания страны регистрации своих полностью консолидированных основных дочерних компаний? 17. Указывает ли компания страны присутствия своих полностью консолидированных основных дочерних компаний? 18. Указывает ли компания полный список своих частично консолидированных основных дочерних компаний? 19. Указывает ли компания процент своего участия в своих частично консолидированных основных дочерних компаниях? 20. Указывает ли компания страны регистрации своих частично консолидированных основных дочерних компаний? 21. Указывает ли компания страны присутствия своих частично консолидированных основных дочерних компаний? ---   Похоже, что TI готовила ответы на основании наспех просмотренных отчётов компаний, уставов и учредительных договоров, а также уведомлений, поданных местным регуляторам фондового рынка. Специалисты TI не могли правильно поставить галочки в полях «да» или «нет», поскольку были не в состоянии оценить, что именно означали те или иные документы по раскрытию информации, содержалась ли в них полная информация, и была ли она правдой. В этой анкете отсутствуют вопросы о долгах и обеспечении. В случае с «Русалом», самым крупным должником среди российских компаний, интересно узнать, о какой части своих долгов компания сообщила российским государственным банкам, о том, что заложено в качестве обеспечения: акции группы «Русал» и её дочерних компаний, производственные и торговые активы; а также кто выступает в качестве кредиторов?   К тому же в докладе TI не всё так однозначно. Прозрачность «Русала» значительно различается в разных странах его присутствия. В таблице прозрачности по странам TI даёт «Русалу» 27-е место, что ставит компанию далеко позади её российских коллег, «Норильского никеля» и «Евраза».   Источник: Transparency International   Это означает, что в одной стране такая компания как «Русал» может получить высший балл по раскрытию информации, по крайней мере, по анкете TI. Но в другой стране – например, там, где «Русал» регистрирует право собственности своих акций или указывает операционные доходы и платит налоги – прозрачность гораздо ниже и совершенно не подлежит анализу и оценке TI. Как всем известно, это именно то, для чего придумана лазейка оффшорной регистрации. Однако в последнем отчёте TI оффшорная регистрация как схема для сокрытия корпоративной информации не упоминается ни разу. Очевидно, что «Русал» пользуется оффшорами, потому что он получает бóльшую часть доходов от основной деятельности в России, но официально компания зарегистрирована на острове Джерси. Именно там «Русал» подаёт отчёты об изменениях в структуре собственности объединённой компании, дочерних компаний, и о правах и обязанностях бенефициаров. TI не знает, насколько прозрачны документы по раскрытию информации «Русала», подаваемые на Джерси. Также TI не может сообщить, содержатся ли в этих документах по раскрытию данные о структуре собственности группы «Русал», и кто является бенефициаром торговых операций. О том, как «Русал» скрывает свои оффшорные торговые операции, можно прочитать здесь. Документальную информацию о роли латвийских банков в обеспечении непрозрачности этих денежных потоков можно получить здесь.   Эта чёрная дыра имеет особое значение в свете того срока, который истекает 6 декабря. С этого дня особый класс акционеров получит право погасить свои акции «Русала» и потребовать оплаты в размере до 1 млрд. долларов накопленных «Русалом» обязательств. Вот официальное определение «имеющих право на погашение» акционеров RTI, прямой дочерней компании «Русала», в одном из документов, поданных на Джерси.   Здесь, в проспекте «Русала» на Гонконгской фондовой бирже, опубликованном в декабре 2009 года, указана потенциальная ответственность «Русала» за задолженность перед акционерами, имеющими право на погашение. Текст приводится полностью для лучшего понимания – рекомендуется читать медленно и вдумчиво.   «К 12 февраля 2010 года прямой дочерней структуре Компании, RTI Limited (RTI), потребуется рекапитализация. Этим подразумевается, что Компания предоставит и обязуется оплатить на дату после 6 декабря 2013 года сумму в размере, превышающем или равном текущим накопленным убыткам RTI в обмен на распределение подлежащих погашению акций RTI. По факту распределения (при условии, что RTI готова распределить Акции на основании обязательства, что она должна сделать, если убедится в своей текущей и будущей платёжеспособности), добавочный оплаченный капитал от распределения Акций будет добавлен к уставному капиталу RTI, и, таким образом, будет зачтён в счёт накопленных убытков RTI. По состоянию на 30 ноября 2009 года RTI имеет отрицательный собственный капитал в размере около 1 млрд. долларов США. В ходе процедуры рекапитализации Компании не придётся осуществлять каких-либо платежей в пользу RTI в отношении своего обязательства по платежу (как указано выше) не ранее декабря 2013 года. В том случае, если RTI будет вести торговую деятельность и окажется платёжеспособной вплоть до декабря 2013 года, то получение денег от Компании в пользу RTI и погашение средств со стороны RTI в пользу Компании, скорее всего, компенсируют друг друга. В свете вышеизложенного, для этих целей никакие суммы не выделялись. В соответствии с законодательством Джерси, требований по рекапитализации не существует, и наличие отрицательных чистых активов не мешает компании продолжать торговую деятельность или выплачивать дивиденды» (см. Проспект, стр. 236).   Что касается событий, которые могут произойти, если акционеры, имеющие право на погашение, подадут против «Русала» иск на возмещение денежных средств после 6 декабря, в Проспекте говорится следующее: «Подлежащие погашению ограниченные акции Компании могут быть выкуплены для погашения у любого источника, но только в случае их полной оплаты. (iii) Подлежащие погашению ограниченные акции могут быть погашены только в случае, если все директора Компании, санкционирующие погашение, сделают заявление о платёжеспособности Компании на момент погашения и на период в двенадцать месяцев после погашения» (стр. VII-19).   Текущая рыночная капитализация «Русала» составляет всего 4,4 млрд. долларов, так что на 6 декабря совокупная стоимость подлежащих погашению акций RTI может составить почти четверть стоимости всей группы «Русал». Однако, согласно текущему отчёту «Русала» о производственной деятельности за третий квартал, выручка составила 2,4 млрд. долларов, а себестоимость реализованной продукции – 2,1 млрд. долларов, прибыль составила 130 млн. долларов, чистый убыток за период – 172 млн. долларов; оборотных средств имеется в размере 1,8 млрд. долларов; накопленные кредитные обязательства доставляют 11,5 млрд. долларов, а денежные средства в кассе – всего 463 млн. долларов.   В последнем отчёте «Русала» по запасам, которые компания должна выделить для погашения обязательств будущих периодов, общая сумма, указанная на 30 сентября, составляет 687 млн. долларов, большая часть – для восстановления месторождений до экологических норм, затем – для пенсионных обязательств, налогов и судебных исков (стр. 30). Там нет упоминания, а, следовательно, не выделялось и запасов, для покрытия исков акционеров, имеющих право на погашение.   Быстрая проверка платёжеспособности по этим счетам показывает, что погашение на сумму в 1 млрд. долларов для совета директоров «Русала», вероятно, составит непреодолимую трудность при условии, что им потребуется «сделать заявление о платёжеспособности Компании на момент погашения и на период в двенадцать месяцев после погашения». Короче говоря, если «Русалу» будут предъявлены к погашению акции RTI на сумму в 1 млрд. долларов, это приведёт «Русал» к банкротству.   Так кто же эти владельцы 1600 подлежащих погашению акций, и сколько они могут потребовать или потребуют от «Русала» в будущем месяце? Последней на текущий момент попыткой проанализировать значение размещённых на Джерси «подлежащих погашению» акций была публикация о том, что «вероятно, у RTI есть многомиллиардные претензии на выручку от продаж «Русала», но непосредственно собственным бизнесом компания не занимается. Так для чего же нужна эта компания? Ответ, вероятно, в том, что это хранилище акций, которые «Русал» держит в форме траста для (и в пользу) людей, которые думают, что владеют долей доходов «Русала», и которые рассчитывают на то, что Дерипаска сохранит стоимость этих долей в трасте, и что эти доли останутся в тайне».   По словам Александра Волошина, бывшего руководителя администрации президента Бориса Ельцина и назначенца от «Русала» на пост председателя совета директоров «Норильского никеля», значительная доля акций «Русала» принадлежала семье Ельцина. Волошин утверждает, что некоторое время назад эта доля была продана. Другой источник утверждает, что первоначально акциями владел сам Ельцин, и что после его смерти они перешли к его жене и дочерям. Ельцин скончался 23 апреля 2007 года. Затем, по словам источника, близкого к «Русалу», произошли «изменения». Либо сразу, либо приблизительно в 2010 году (по версии Волошина), все ельцинские акции были проданы. Кто их купил? Эту тайну хранит «Русал».   По словам одного бухгалтерского аналитика, «основная проблема в том, что подлежащие погашению акции были выпущены RTI (структурой «Русала», занимающейся толлингом и маркетингом), а не ОК «Русал». Так что 100%-ная дочерняя структура должна 1 млрд. долларов самому «Русалу»! Это решение было навязано международными банками «Русала», некоторые из которых выдали займы под гарантии RTI и не хотели допустить её ликвидации».   Соглашение международных банков о реструктуризации долгов «Русала» было подписано 7 декабря 2009 года. Неизвестно, были ли подлежащие погашению акции выпущены до или после этой даты. Исходя из имеющихся документов, зарегистрированных на Джерси, можно предположить, что эти акции были выкуплены и записаны в регистре компании к июлю 2007 года.   По словам вышеуказанного бухгалтерского аналитика, толковать опубликованные на Джерси документы и проспект «Русала» следует именно в том свете, что этот класс акций является для кредиторов «Русала» способом учёта для защиты своего обеспечения в «Русале» и в доходах от торговли.   Источники, более близкие к «Русалу», сходятся в другом мнении. Они утверждают, что подлежащие погашению акции выпустил Олег Дерипаска, генеральный директор и, посредством холдинга En+, контролирующий акционер как «Русала», так и RTI. Однако существуют две точки зрения на то, какую пользу этот класс акций призван принести Дерипаске.   По одной из версий, это «ядовитая пилюля», создающая для «Русала» обязательство в размере 1 млрд. долларов в случае, если Дерипаска спровоцирует требование акционеров RTI погасить акции компании. Теоретически, единственной причиной, по которой Дерипаска пошёл бы на это, может стать угроза его контролирующей позиции в «Русале» со стороны других акционеров «Русала», или со стороны государственных акционеров, действующих через государственные банки.   Вторую версию предложил инсайдер из «Русала». Он, как и другие источники, близкие к государственным банкам, считает, что доля в 48,13% акций «Русала», которыми Дерипаска, по его собственным словам, владеет через En+, о чём сообщается на сайте «Русала», – с ноября 2008 года существенно сократилась в результате залогов, выданных Дерипаской в обмен на государственные средства для поддержания платёжеспособности «Русала». Следовательно, согласно этой версии, Дерипаска действует, скорее, как доверительный управляющий от лица Кремля, нежели как полновластный контролирующий акционер. «Окончательные решения по вопросам структуры, контроля и рекапитализации «Русала» принимает не Дерипаска», – говорит источник. – «Так что если будет решение по поглощению, он может возражать против него, но предотвратить не сможет. Однако если он контролирует торговый денежный поток «Русала» через RTI и 1600 подлежащих погашению акций RTI, он сможет обеспечить себе сумму в размере до миллиарда долларов. Это его билет на выход».   Будущая структура «Русала» и контрольный пакет Дерипаски являются предметом спора с середины года после того, как группа «Онэксим» Михаила Прохорова, которой принадлежит 17,02% акций «Русала», публично выступила с предложением выкупить бóльшую часть долгов «Русала» у зарубежных банков, преобразовать их в собственный капитал и тем самым сформировать альянс, владеющий новым большинством акций взамен Дерипаски и En+. В июне Дмитрий Разумов, генеральный директор группы «Онэксим», заявил: «Мы не хотим быть в компании [«Русал»], чья единственная задача – платить кредиторам, а не акционерам... [Единственное, что может помочь «Русалу»] восстановиться скорее раньше, чем позже, – превратить часть своего долга в капитал».   Ещё одна проблема – это разбирательство в Лондонском суде международного арбитража (LCIA) между Виктором Вексельбергом и Леонардом Блаватником, направленное на то, чтобы положить конец манипуляциям Дерипаски с уставом акционеров «Русала» и торговых соглашений. Вексельбергу и Блаватнику принадлежит 15,8% акций «Русала». Они начали разбирательство в Лондоне в апреле 2012 года. В примечании аудиторов в разделе о непредвиденных обстоятельствах к своему финансовому отчёту за 2012 год «Русал» отметил, что «спор относится к определённой договорённости акционеров между сторонами в отношении Компании. Sual Partners утверждает, в частности, что некоторые договоры между компанией и Glencore International AG и договор между Компанией и компанией, косвенно контролируемой En+, были или будут нарушать эти договорённости акционеров. Sual Partners добивается судебного запрета на выполнение договоров Группы, аннулирования договоров, подсчёта прибылей и возмещения ущерба со стороны ответчиков. Руководство считает, что арбитражный процесс не окажет существенного негативного влияния на финансовое положение Группы или её деятельность в целом».   Продолжающиеся убытки, о которых на этой неделе отчитался «Русал», обязали Дерипаску разными способами лоббировать поддержку Кремля. Один из его планов – выделение государственных средств на оплату складирования готового алюминия до тех пор, пока рыночная цена не восстановится до уровня, при котором деятельность «Русала» станет прибыльной. Аналогичная схема была реализована в 2009 году для поддержания полной загрузки мощностей по добыче алмазов на рудниках «Алросы» в Республике Саха. Алмазы продавались в пользу Гохрана, принадлежащего Министерству финансов. Продукция удерживалась на складах от внутренних и внешних продаж до того момента, как мировые цены на алмазы не восстановились на прежнем уровне. Сумма, заплаченная тогда из государственного бюджета, составила более 1 млрд. долларов. Для алюминия такой план пока что одобрен не был.   Дерипаска также стремится получить разрешение на реорганизацию деятельности своих предприятий в России, закрытие дорогостоящих предприятий в западных регионах страны и приостановку запуска новых предприятий на востоке. Станет ли «Русал» чисто сибирским производителем металла, или вернётся к модели до 2000 года в качестве производителя первичного алюминия, листового полуфабриката и готовой продукции для строительства, аэрокосмической и автомобильной промышленности, руководство «Русала» пока что открыто не сообщает. В настоящее время в отчёте, опубликованном в ноябре 2012 года, компания заявляет, что закрытие предприятий на западе страны является временной мерой, а не окончательной реструктуризацией компании.   «Для обеспечения эффективности бизнеса РУСАЛ временно прекратил производство алюминия на Волгоградском, Волховском и Уральском алюминиевых заводах, на первой очереди Новокузнецкого алюминиевого завода, а также в некоторых электролизных корпусах Богословского и Надвоицкого алюминиевых заводов. Также объёмы производства были снижены на ряде других производственных объектов». Специалисты в области алюминиевой промышленности в Лондоне предупреждают, что как только производство на алюминиевом заводе полностью останавливается, вновь запустить его может оказаться дороже, чем нарастить ту же мощность на другом заводе.   Если 1600 подлежащих погашению акций находятся под контролем не Дерипаски, а государства, то срок погашения может быть началом гораздо большей реорганизации «Русала», чем до сих пор сообщалось в открытых публикациях. Как утверждает «Русал», его организационная структура на 100% прозрачна, и высокая оценка, полученная от Transparency International, «подчёркивает ту важную роль, которую РУСАЛ отводит корпоративной отчётности и прозрачности структуры собственности. РУСАЛ также набрал 69% по качеству антикоррупционных программ».   Для миноритарных акционеров «Русала» эти оценки – далеко не главное. То, что важнее, прояснится поздним вечером 6 декабря. В это время акционеры «Русала» и RTI, имеющие право на погашение, возможно, заявят о своих взаимных требованиях о возмещении денежных средств.

Выбор редакции
19 июня 2013, 21:13

Firm bets on power of wind for No. 1

SHANGHAI Electric Group is banking on the rising power of wind to blow it to No. 1 in China's offshore wind market.

Выбор редакции
19 июня 2013, 14:28

Shanghai Electric aims for 30% of offshore wind market

SHANGHAI Electric Group aims to grab a 30 percent market share in China's offshore wind market, a sector set to boom in coming years after a slow start.

05 марта 2013, 21:11

China's Wahaha Billionaire Says Capital Markets "Suck"

One of China's wealthiest men, Zong Qinghou - founder of the privately listed beverage empire Hangzhou Wahaha Group - is hunting fort deals overseas as the WSJ reports, he believes “The capital markets suck in China.” Since China's stock market bubble burst (after running up from 1000 in 2005 to 7000 in 2007), it has never recovered from its collapse, loitering around 2,000 points ever since. Plagued by too many offerings (run by the government) and a slowing economy, WSJ notes that a common complaint is that the only investors who make money from China’s stock markets are those with inside information. The retail investors that fueled the bubble in the first place remain scarred by the experience, and have mostly stayed away, as Zong concludes: "When the ordinary people invest in it, the market should reward them with some benefits. But it does not." This has driven the desire to 'invest' or speculate in real estate - a topic we discussed yesterday - leading to a looming bubble there also. China's Shanghai Composite...     Via WSJ, China’s richest man has a strong statement for those looking to invest: “The capital markets suck in China.”   Zong Qinghou climbed his way to the top of the list of China’s wealthiest by amassing a fortune of $12.6 billion through his privately listed beverage empire Hangzhou Wahaha Group Co. On Tuesday, he made clear he didn’t gain his wealth through the country’s stock market.   “When the ordinary people invest in it, the market should reward them with some benefits. But it does not,” Mr. Zong said on the sidelines of China’s annual parliamentary session, taking aim at speculators he says ruin the stock market for others. “The speculation has totally ordinary investors of any benefits.”   The sentiment of the billionaire, who is also an NPC representative, speaks volumes about the state of the country’s capital markets, highlighting the monumental obstacles investors face in China as they look for places to park their money in hopes of a return.   In recent years, China’s stock markets have lagged and generally been sluggish, plagued by too many offerings and a slowing Chinese economy. China’s stock bubble burst at the end of 2007 after the benchmark Shanghai Composite Index rose to almost 6,000 points from about 1,000 two years earlier. But the market has never recovered from its collapse, loitering around 2,000 points ever since.   The retail investors that fueled the bubble in the first place remain scarred by the experience, and have mostly stayed away. A common complaint is that the only investors who make money from China’s stock markets are those with inside information.   The Chinese government has made efforts to restore confidence, in part by trying to crack down on insider trading. And China Securities Regulatory Commission Chairman Guo Shuqing has floated the idea of bringing China’s model closer to that of the West, reducing the role the government plays in approving initial public offerings and shifting more power to auditors and investment banks, to foster a more transparent market where the various players take greater responsibility for their actions.   ...   So rather than investing in the stock market, Mr. Zong is now looking to park money in high-tech projects. “We are looking for opportunities and will invest in anywhere that needs us in fields including bioengineering and energy-saving electrical appliance etc.,” said Zong.   ...

19 февраля 2013, 16:38

Frontrunning: February 19

Here comes the replay of 2011 as China starts the counter-reflation moves: China Central Bank Reverses Cash Pump (WSJ) Security group suspects Chinese military is behind hacking attacks (Reuters) Iceland Foreshadows Death of Currencies Lost in Crisis (BBG) China Allows More Firms to Sell Mutual Funds to Bolster Market (BBG) Uncertainty looms for Italians (FT) Forget the big comeback; Detroit focuses on what can be saved (Reuters) SAC’s Cohen May Face SEC Suit as Deposition Hurts Case (BBG) Hollande wrestles with austerity demands (FT) Obama Golf With Woods in Florida Risks Muddling Messsage (BBG) Simpson and Bowles to Offer Up Deficit (WSJ) Aso Says Japanese Government Not Planning Foreign Bond Buys (BBG) - ... until it changes its tune once more Abe to Decide on Bank of Japan Governor Nomination Next Week (BBG)   Overnight Media Digest WSJ * BP already has agreed to pay more than $30 billion in fines, settlements and cleanup costs for the 2010 Deepwater Horizon explosion and oil spill. Now it is placing a big bet that by going to trial next week, it can hold down the cost of one of its last major potential liabilities for the disaster. * OfficeMax Inc and Office Depot Inc are in advanced talks to merge, people familiar with the matter said, as the retailers of pens, paper and desks try to fight off tougher competition from rivals like Staples Inc and Amazon.com Inc * Reader's Digest Association and six affiliates filed for Chapter 11 protection late Sunday night, the publisher's second bankruptcy filing in three-and-a-half years and another example of the pressures on media companies still relying on their print publications. * Google Inc has been developing plans to launch retail stores in the U.S., said people familiar with the matter, in another sign the company is studying Apple Inc playbook for building a consumer-electronics brand. The stores would likely sell Google-branded hardware, these people said. But it isn't clear when or where any stores would open, and one of the people said the Internet giant might not move forward with the plan this year. * The heads of Macy's Inc and J.C. Penney Co Inc are set to clash this week in a New York state court in a rare public donnybrook between the department-store chains as they jockey over their partnerships with Martha Stewart Living Omnimedia Inc * Amazon.com Inc said it had cut ties with a German security firm amid claims that its guards intimidated and harassed temporary immigrant workers that the guards were assigned to oversee for the Internet retailer. * Arms sales by the world's largest weapons makers fell in 2011, representing the first decline since the mid-1990s as austerity measures and a reduced U.S. presence in Iraq and Afghanistan hit military spending. * Protesters clashed with police at Madrid's international airport as ground staff and cabin crews for Spain's Iberia Lineas Aereas de Espana SA began 15 days of strikes to protest plans to lay off 3,800 staff.   FT Rosan Roselani's move to sell his stake in Bumi Plc has thrown Nat Rothschild's careful calculations into disarray and sharply reduced his chances of winning the battle for control of Bumi. Private banking group Edmond de Rothschild is establishing a merchant banking business in London which is set to begin operations this spring. Security guards at a mine operated by Anglo American Platinum fired rubber bullets to end a confrontation between union members during which 12 people were wounded. Amazon.com Inc fired a security firm in Germany that a television documentary linked to the country's far-right, in a move to curtail a growing public relations disaster over alleged mistreatment of foreign temporary workers. Carlsberg gave out cautious guidance for this year and dropped its medium-term regional profit targets after sales growth in its key Russian market stalled. APN News and Media's chief executive and chairman have stepped down after the company's two largest shareholders balked at plans for a deeply discounted rights issue to pay down debt. Google could be sanctioned by European regulators before this summer unless it radically changes its controversial privacy policies. Ireland could end up facing a raft of lawsuits and a possible constitutional challenge as a result of its decision to liquidate one of its failed banks under a deal to restructure 28 billion euros in bank debts. Heathrow Airport's chief executive is open to shifting the airport westward to add runways without significantly increasing noise pollution. David Cameron urged India to dismantle trade barriers in banking and insurance in return for Britain making it easier for Indian business leaders and students to come to the UK. Investors calling for an independent inquiry into Vestas Wind Systems are accusing the company of using an accounting change to boost 2010 revenue and so avoiding the need for a profit warning.   NYT * Criticized for letting Wall Street off the hook after the financial crisis, the U.S. Justice Department is building a new model for prosecuting big banks. In a recent round of actions that shook the financial industry, the government pushed for guilty pleas, rather than just the usual fines and reforms. Prosecutors now aim to apply the approach broadly to financial fraud cases, according to officials involved in the investigations. * Office Depot Inc and OfficeMax Inc are in talks to combine in an all-stock deal that may be announced as soon as this week, a person briefed on the matter said. While talks are at an advanced stage, they may still fall apart, this person cautioned. * Citing a Europe-wide recession, France's Socialist government is moving away from its promise to bring its budget deficit down to 3 percent of gross domestic product this year, arguing that the recession creates an exceptional circumstance requiring less austerity. * Reader's Digest filed for bankruptcy in another effort to cut down the debt that has plagued the pocket-size publication for years. The company is hoping to convert about $465 million of its debt into equity held by its creditors. * Drug maker Novartis AG plans to pay departing chairman Daniel Vasella $78 million to prevent him from sharing knowledge with competitors, adding fuel to an already heated debate about executive pay. * Striking ground workers and flight attendants for Iberia, the money-losing Spanish airline, clashed with riot police officers at Madrid-Barajas Airport to protest a plan to eliminate more than 3,800 jobs. * Pharmaceutical companies Roche Holding AG and GlaxoSmithKline are helping to develop tests for illicit use in order to keep their offerings from being abused by athletes. * A growing body of digital evidence leaves little doubt that an overwhelming percentage of the attacks on American companies and government agencies start in a 12-story office building on the edge of Shanghai, China.   Canada THE GLOBE AND MAIL * The British Columbia Liberal government hired economist Tim O'Neill to spend a week reviewing the economic assumptions and revenue forecasts to help counter the eroded fiscal credibility. O'Neill's final report, which showed revenue assumptions were too optimistic, was released publicly on Monday. * New Brunswick Premier David Alward travelled to Montreal Monday to try to convince Quebec Premier Pauline Marois that moving Alberta oil to the East Coast through Quebec would benefit all provinces. But Quebec Premier did not say if she was swayed by his arguments. Reports in the business section: * PMI Gold Corp and Keegan Resources Inc issued a joint statement saying they had mutually decided to abandon the plans to form a larger gold development company in Africa because it was unlikely that PMI's shareholders would approve the proposed transaction. NATIONAL POST * After a winter of scandals, audits and unanswered questions, a new poll suggests that the vast majority of Canadians say they want to see the Senate either abolished completely or reformed - with momentum building up the most toward scrapping it. Only 22 percent of Canadians say they are content with the Senate's status quo, while 78 per cent would rather see it reformed or abolished, according to an exclusive poll of 1,009 Canadians conducted by Ipsos Reid for Postmedia News and Global Television. * Thousands of people on the East Coast lost power and school was cancelled in Nova Scotia and parts of New Brunswick after blasts of winter wind and wet snow swept through the region. Nova Scotia Power reported about 12,000 outages by 8 a.m. local time. FINANCIAL POST * Quebec's fledgling oil and gas sector will name an Alberta business executive to steer its lobby group - swapping the political connections of its former president for the plain-talking style of an outsider. Sources say Questerre Energy Corp chief executive Michael Binnion has put his name forward to lead the Quebec Oil and Gas Association. He is expected to be named interim president of the group Tuesday for a yet-undetermined period of time. * Bombardier's electric transit technology will be tested next winter on buses in Montreal, followed in early 2014 on an urban route used by passengers in the German city of Mannheim. Quebec Premier Pauline Marois said such a move would reduce greenhouse gases and allow for the replacement of $30-million of crude oil that is imported daily, mostly for transportation.   Fly on the Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades Atmel (ATML) upgraded to Buy from Hold at NeedhamBest Buy (BBY) upgraded to Overweight from Equal Weight at BarclaysCharles River Labs (CRL) upgraded to Buy from Hold at JefferiesComstock Resources (CRK) upgraded to Outperform from Market Perform at BMO CapitalCypress Semiconductor (CY) upgraded to Buy from Hold at NeedhamForum Energy (FET) upgraded to Outperform from Market Perform at FBR CapitalGNC Holdings (GNC) upgraded to Buy from Neutral at GoldmanLufkin (LUFK) upgraded to Outperform from Market Perform at Wells FargoMGM Resorts (MGM) upgraded to Outperform from Sector Perform at RBC CapitalRealty Income (O) upgraded to Buy from Neutral at BofA/MerrillPNM Resources (PNM) upgraded to Buy from Hold at JefferiesPower-One (PWER) upgraded to Strong Buy from Outperform at Raymond JamesThe Fresh Market (TFM) upgraded to Buy from Neutral at GoldmanXilinx (XLNX) upgraded to Buy from Neutral at BofA/Merrill Downgrades Cree (CREE) downgraded to Perform from Outperform at OppenheimerGold Fields (GFI) downgraded to Sell from Neutral at CitigroupKey Energy (KEG) downgraded to Market Perform from Outperform at Wells FargoLifePoint Hospitals (LPNT) downgraded to Hold from Buy at WallachBethNewpark Resources (NR) downgraded to Neutral from Buy at SunTrustPPL Corp. (PPL) downgraded to Sector Perform from Outperform at RBC CapitalTrulia (TRLA) downgraded to Hold from Buy at Deutsche BankUBS (UBS) downgraded to Neutral from Outperform at Credit Suisse Initiations Interpublic Group (IPG) coverage assumed with a Neutral at Piper JaffrayLipoScience (LPDX) initiated with an Overweight at BarclaysLipoScience (LPDX) initiated with an Overweight at Piper JaffrayMDC Partners (MDCA) coverage assumed with an Overweight at Piper JaffrayMillennial Media (MM) coverage assumed with a Neutral at Piper JaffrayTile Shop (TTS) initiated with a Buy at Citigroup HOT STOCKS Facebook (FB) said systems targeted in attack, no evidence of compromised user dataSiemens (SI) made EUR1.3B binding bid for Finmeccanica unit, Dow Jones reportsSEC sued unidentified traders over suspicious trading in Heinz (HNZ), Bloomberg reports. SEC froze assets in Swiss account related to trading ahead of Heinz dealGeneral Mills (GIS) reaffirmed guidance for FY13 FY14 plans call for returning more cash to shareholders VimpelCom (VIP), Microsoft (MSFT) and Nokia (NOK) in Windows phone dealOrbitz Worldwide (OWW) exploring strategic alternatives for some/all of assets in Away NetworkAllstate (ALL), United Airlines (UAL) announced agreement for MileagePlus awardsALPA reached tentative agreement with US Airways (LCC) subsidiaryCinemark (CNK) to sell Mexico subsidiaries to CinemexAtlas Pipeline Partners (APL) sees FY13 dividend distributions of $2.50-$2.60Vodafone (VOD), BAE Systems (BAESY) formed security and mobile partnershipNovartis (NVS) announced FDA approval of ZortressDanone (DANOY) confirmed plan to cut 900 jobs across 26 European countries EARNINGS Companies that beat consensus earnings expectations last night and today include:Bruker (BRKR), Cimarex Energy (XEC), Westlake Chemical (WLK), HealthSouth (HLS), Chemed (CHE), Express Scripts (ESRX) Companies that missed consensus earnings expectations include:Windstream (WIN), Fresh Del Monte (FDP), BioCryst (BCRX), CUI Global (CUI), Atlas Pipeline Partners (APL), America's Car-Mart (CRMT) NEWSPAPERS/WEBSITES Boeing (BA) engineers are expected to finish voting today amid contract talks that are adding uncertainty for the company as it struggles with the grounding of its flagship 787 jetliner. A strike authorization wouldn't result in an immediate work stoppage, the Wall Street Journal reportsBP (BP) agreed to pay over $30B in fines, settlements and cleanup costs for the 2010 Deepwater Horizon explosion and oil spill. Now it is betting that by going to trial next week, it can hold down the cost of one of its last major potential liabilities for the disaster with Gulf Coast states, businesses, individuals and the federal government for environmental-related claims, the Wall Street Journal reportsJapan's government delayed nominating a Bank of Japan governor by a week, raising talk of friction between Prime Minister Shinzo Abe and the finance minister over who should run a central bank charged with taking bold action to reignite the economy, Reuters reportsSwiss authorities said today they haven’t been asked to help a U.S. investigation into alleged insider trading in call options of H.J. Heinz (HNZ) the day before the company announced it would be sold, even though a Zurich account is at the center of the matter, Reuters reportsTreasury 10-year yields stayed above 2% amid speculation minutes of the Fed’s latest policy meeting that are due tomorrow will provide more detail on the timing of a withdrawal of stimulus, Bloomberg reportsEU auto sales declined to the lowest level for a January, with Ford (F) and Peugeot (PEUGY) reporting the biggest drops, as economic contractions in the southern part of the region spread to Germany and France, Bloomberg reports BARRON’S Buffett's (BRK.A) 9% preferred stock dividend leaves Heinz (HNZ) low on cashLINN Energy (LINE) could be overvalued and riskyAmerican Eagle (AEO) shares could rise 50% or moreEquinix (EQIX), Rackspace (RAX) look overpriced

04 февраля 2013, 16:30

Frontrunning: February 4

Euro Tremors Risk Market Respite on Spain-Italy, Banks (Bloomberg) Obama Says U.S. Needs Revenue Along With Spending Cuts (Bloomberg)  China Regulators Moved to Restrain Lending (WSJ) Low Rates Force Companies to Pour Cash Into Pensions (WSJ) JAL wants to discuss 787 grounding compensation with Boeing (Reuters) Abe Shortens List for BOJ Chief as Japan Faces Monetary Overhaul (Bloomberg) Monte Paschi probe to widen as Italian election nears (Reuters) Hedge funds up bets against Italy's Monte Paschi (Reuters) Spain's opposition Socialists tell Rajoy to resign (Reuters) Electric cars head toward another dead end (Reuters) BlackRock Sued by Funds Over Securities Lending Fees (Bloomberg) Amplats plunges to an annual loss (FT) Youngest American Woman Billionaire Found With In-N-Out (Bloomberg) Overnight Media Digest WSJ * The Baltimore Ravens survived a 35-minute blackout and a fierce comeback from San Francisco to win the Super Bowl. * The U.S. is fighting Anheuser-Busch InBev's acquisition proposal for Grupo Modelo with a game plan developed in earlier antitrust cases, casting the Budweiser brewer as a dominant player that wants to eliminate a scrappy rival. * U.K. Treasury chief George Osborne on Monday will announce new powers for regulators to split up banks that flout rules designed to ring-fence retail banking from riskier investment-banking activity. * Two top Barclays Plc executives announced their resignations Sunday, as the giant British bank swept out some of the last vestiges of its scandal-plagued prior management team. * U.S. regulators on Monday will mandate enhanced inspections and repairs where necessary to cables that control tail surfaces on about 30,000 Piper aircraft, some of the most popular general-aviation planes sold in the United States. * The European Union has asked national bank regulators in the 27-nation bloc to explain policies that may be preventing free flows of funds across national borders, the first public step in a campaign by EU authorities to combat fragmentation of the region's financial markets. * Boeing Co is expected to begin piecing together the next version of its Dreamliner jet in the coming weeks, even without a fix for what has bedeviled the plane's electrical system or a timetable for resuming flights.   FT EUROPEAN BANK BONUSES FACE 20 PCT CUT - European investment banks are set to cut their bonus pools in the coming weeks by 20 percent in a move that will exacerbate the pay gap with their US rivals. BLACKSTONE SECURES UNDERWRITING LICENCE - Blackstone, one of the world's largest alternative asset managers, has quietly secured a securities underwriting licence as its expanding capital markets operation strays into investment banking territory. BARCLAYS FINANCE CHIEF TO STEP DOWN - Chris Lucas, Barclays' finance director since 2007, and Mark Harding, general counsel, are to step down, in the latest sign of the pressure piling on the British bank's top management following a string of scandals and a probe into the lender's capital raising efforts during the financial crisis. AB INBEV TO FIGHT DOJ MOVE OVER MODELO - Anheuser-Busch InBev has signalled it intends to fight a Department of Justice lawsuit seeking to block its $20 billion deal to take full control of Modelo, the Mexican brewer. CITIGROUP STARTS SENIOR HIRING AMID CUTS - Citigroup has hired one of Europe's best-known dealmakers as the US group seeks to add a string of top investment bankers even as it is sharply reducing junior staff. Luigi de Vecchi, a former Credit Suisse and Goldman Sachs banker, has been appointed as chairman for corporate and investment banking in continental Europe, the US bank will announce on Monday. APPLE REVERSES STANCE ON VOTING REFORM - Apple has sought the help of one of the sharpest critics of its corporate governance policies to push through reforms on shareholder voting rights at its annual meeting this month. The technology giant has enlisted the aid of Calpers, the largest US pension fund, to lobby other big shareholders on the vote. TRAFIGURA BETS $800M ON AUSTRALIA ENERGY - Trafigura, one of the world's largest commodities trading houses, has bet roughly $800 million on the transformation of the Australian energy market with the acquisition of two petrol station and oil import terminal companies. BUYOUT GROUPS EXPLORE PROSIEBEN EXIT - KKR and Primera, the private equity owners of ProsiebenSat.1, are exploring a sale of their controlling stake in Germany's largest private broadcaster to a trade buyer, as they look to cash out from a multi-billion euro leveraged buyout done before the financial crisis. SIR STUART TO BECOME FAT FACE CHAIRMAN - Sir Stuart Rose, the high profile former Marks and Spencer boss who last month took on the chairmanship of online grocery company Ocado , is adding UK clothing retailer Fat Face to his jobs portfolio. CENTRICA SET FOR 'NEW NUCLEAR' EXIT - Centrica, owner of British Gas, is believed to be ready to pull out of plans to build nuclear power stations in Britain, clearing the way for Chinese investors to step in.   NYT * About 90 seconds into the second half of Sunday's Super Bowl, the lights on one half of the Superdome's roof suddenly went out, internet connections in the press box were cut, and the scoreboards went dark. The power failure was one of the oddest moments in Super Bowl history, and officials said they were still investigating its cause. * U.S. President Obama said on Sunday that he could foresee a budget deal in Congress that did not include further increases in tax rates but instead focused on eliminating loopholes and deductions. * Barclays Plc said its chief financial officer and its general counsel would resign, the latest departures after the British bank's involvement in a series of scandals, including an investigation into the manipulation of global interest rates. * Bank of America Corp continued dubious mortgage modification practices even after its acquisition of Countrywide, court documents show. * New details raise questions on whether the U.S. government will be able to build its insider trading case against Steven Cohen, the billionaire owner of hedge fund SAC Capital Advisors. * The Medicines Co is licensing the rights to a powerful type of cholesterol-lowering drug from Alnylam Pharmaceuticals Inc, entering one of the hottest races in the industry.   Canada THE GLOBE AND MAIL * Prime Minister Stephen Harper has categorically rejected Quebec's demands for changes to tough new employment insurance rules that Premier Pauline Marois says will have "dramatic consequences" on seasonal workers in her province. * As Canada prepares to take the helm of the eight-nation Arctic Council, a proposed treaty dealing with blowouts and oil spills is being criticized as so pro-development that it will delight drillers but leave the fragile Arctic environment exposed to catastrophic damage, according to Greenpeace Canada. Reports in the business section: * Canada's most ubiquitous coin will play a dwindling part in everyday business beginning Sunday, as Ottawa phases it out to cut costs. The passing of the penny will affect the full spectrum of the nation's economy, from big banks to the corner store - forcing businesses and consumers to change some of their habits. NATIONAL POST * A winter storm is dumping heavy snow on Eastern Canada, with more than 30 centimeters expected in parts of Nova Scotia by Monday afternoon. Environment Canada has issued snowfall warnings for the Halifax area and along the southwestern coast of the province. * Police say a mob-linked multi-million dollar illegal gambling ring was dismantled Sunday night when heavily armed tactical teams raided a massive Super Bowl party in Markham, Ontario. FINANCIAL POST * The Supreme Court of Canada on Friday struck a blow to workers and retirees who want pension plans to rank first in line for payouts to creditors in corporate bankruptcies or restructurings. In the landmark case, Sun Indalex Finance LLC vs United Steelworkers et al., the court found that pension funds do not rank ahead of "debtor-in-possession" (DIP) lenders in bankruptcy protection proceedings.   China PEOPLE'S DAILY -- A commentary urges government departments to stop using public money during the Chinese lunar new year, which falls on Feb. 10 this year, as part of a government campaign to fight official corruption. SHANGHAI SECURITIES NEWS -- The recent lingering pollution in Beijing and some other northern cities is expected to force Chinese refineries to upgrade the quality of fuel and gasoline. -- The government campaign to fight official corruption has caused share prices of alcohol producers to drop in recent weeks. Alcohol is widely used in public entertainment in China, and investors believe the campaign will reduce consumption of alcohol and thus weaken earnings of producers. CHINA SECURITIES JOURNAL -- As China's stock market has staged a strong rally since early December, the ratio of stock holdings by domestic mutual funds has now reached a high level of 89.53 percent among all their securities holdings. -- A commentary says China needs to expand overseas investment to make better use of its big foreign trade surplus. CHINA DAILY (www.chinadaily.com.cn) -- An increasing number of Chinese people are realising the value of Internet domain names. Those who manage to buy good names can make a lot of money. By the end of 2012, China had 13.4 million domain names registered in the country, a 73.1 percent increase from a year earlier.   Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades BlackBerry (BBRY) upgraded to Outperform from Market Perform at BernsteinFranklin Resources (BEN) upgraded to Outperform from Market Perform at Keefe BruyetteMaxwell (MXWL) upgraded to Overweight from Neutral at Piper JaffrayMead Johnson (MJN) upgraded to Conviction Buy from Neutral at GoldmanSt. Jude Medical (STJ)  upgraded to Outperform from Neutral at Credit SuisseTimken (TKR) upgraded to Buy from Neutral at BofA/MerrillUltra Clean (UCTT) upgraded to Buy from Hold at NeedhamWestern Union (WU) upgraded to Buy from Hold at Deutsche Bank Downgrades AkzoNobel (AKZOY) downgraded to Reduce from Neutral at NomuraCash America (CSH) downgraded to Neutral from Buy at Janney CapitalCharles Schwab (SCHW) downgraded to Neutral from Buy at UBSChevron (CVX) downgraded to Neutral from Buy at UBSColumbia Sportswear (COLM) downgraded to Sell from Neutral at CitigroupComfort Systems USA (FIX) downgraded to Hold from Buy at BB&TCopart (CPRT) downgraded to Neutral from Outperform at RW BairdGoogle (GOOG) downgraded to Market Perform from Outperform at BMO CapitalHershey (HSY) downgraded to Neutral from Conviction Buy at GoldmanLeapFrog (LF) downgraded to Buy from Strong Buy at Ascendiant CapitalMerck (MRK) downgraded to Underweight from Equal Weight at Morgan StanleyMichael Baker (BKR) downgraded to Hold from Buy at KeyBancPennyMac (PMT) downgraded to Market Perform from Outperform at Keefe BruyetteVodafone (VOD) downgraded to Neutral from Buy at CitigroupWESCO (WCC) downgraded to Neutral from Buy at UBSWSFS Financial (WSFS) downgraded to Neutral from Buy at Janney CapitalWal-Mart (WMT) downgraded to Neutral from Overweight at JPMorgan Initiations CEMEX (CX) coverage reinstated with a Neutral at CitigroupDover (DOV) initiated with a Buy at Ascendiant CapitalFusion-io (FIO) initiated with a Neutral at UBS HOT STOCKS Aegon (AEG) ended joint venture with Unnim Banc, sells stake for EUR 353MUS Airways' (LCC) Piedmont Airlines and ALPA reached tentative agreementAmerican Safety Insurance (ASI) rating revised to negative from stable at A.M. BestThird Point sold a portion of holdings in Yahoo (YHOO)Commerzbank (CRZBY) sees employee cuts of 4,000 to 6,000 through 2016Blackstone (BX) acquired stake in two Maldives-based seaplane operators Cowen Group (COWN) to acquire Dahlman Rose, terms not disclosed EARNINGS Companies that beat consensus earnings expectations last night and today include:HomeStreet (HMST), Humana (HUM), Sohu.com (SOHU), Changyou.com (CYOU), Brown & Brown (BRO) Companies that missed consensus earnings expectations include:Eloqua (ELOQ), Cape Bancorp (CBNJ), First Bancorp (FBNC) NEWSPAPERS/WEBSITES Ford (F) expects to spend $5B this year shoring up its pension funds. The automaker is one of a who's who of U.S. companies pouring cash into pension plans now being battered by record low interest rates, the Wall Street Journal reports Google (GOOG), Microsoft (MSFT) and Amazon.com (AMZN) have battled each other for dominance in mobile gadgets and Web searches. The latest front in their war is invisible: computing horsepower, the Wall Street Journal reports Japan Airlines Co. said it will talk to Boeing (BA) about compensation for the grounding of the 787 Dreamliner, adding that the idling of its jets would cost it about $8M from its earnings through to the end of March, Reuters reports Recent moves by Japan's two largest automakers, Toyota (TM) and Nissan (NSANY), suggest that the electric car, after more than 100 years of development and several brief revivals, still is not ready for prime time, and may never be, Reuters reports Investment returns earned by “mega” public pensions, with assets of more than $5B, topped those of the smaller plans by almost 1% last year. Big government-employee pensions reported median returns of 13.43% for the year. Funds with less than $1B in assets had median returns of 12.47%, according to Wilshire Associates, Bloomberg reports Stocks in the world’s developed nations posted the best start to a year in two decades, a sign the global economy is poised to accelerate after contractions in Japan, the U.S. and Europe, if history is a guide. The MSCI World Index of stocks in 24 markets gained 5% in January, the most since 1994, Bloomberg reports BARRON’S Tata Motors (TTM) could offer a 25% upside within the next 18 monthsSanDisk (SNDK) could rise 20% due to increased use of flash memoryGulfMark Offshore (GLF) stock could rise 30% or higher this yearBlackBerry's (RIMM, BBRY) 10 provides hope to Research in MotionAn increase in buyers and sellers will drive Amazon's (AMZN) stock SYNDICATE NXP Semiconductors (NXPI) files to sell 30M shares of common stock for holdersPURE Bioscience (PURE) files to sell $15M of common stockQualstar (QBAK) files to sell 530K shares of common stock for holdersU.S. Silica (SLCA) files to sell 41.17M shares of common stock for holders

25 января 2013, 16:44

Frontrunning: January 25

Fed Pushes Into ‘Uncharted Territory’ With Record Assets (BBG) Next up in the currency wars: Korea - Samsung Drops on $2.8 Billion Won Profit-Cut Prediction (BBG) China Warns ‘Hot Money’ Inflows Possible on Easing From Abroad (Bloomberg) BOJ Shirakawa affirms easy policy pledge but warns of costs (Reuters) Merkel Takes a Swipe at Japan Over Yen (WSJ) Wages in way of Abe’s war on deflation (FT) Italian PM under fire over bank crisis (FT) Senior officials urge calm over islands dispute (China Daily) Spain tries to peel back business rules (FT) Rifts Over Cyprus Bailout Feed Broader Fears (WSJ) Soros Says the Euro Is Here to Stay as Currency War Looms (BBG) Deutsche Bank Debt Salesmen Said to Go Amid Pay Overhaul (BBG) Cameron pitches new deal as good for EU (FT)   Overnight Media Digest WSJ * U.S. President Barack Obama nominated a former prosecutor turned white-collar criminal defender, Mary Jo White, as his choice for top U.S. securities regulator. * Microsoft's quarterly earnings slipped 3.7 percent as the software giant reported weaker sales in its business and entertainment divisions, though revenue in its core Windows business strengthened. * Citigroup Inc's private bank has decided to pull its $187 million investment from SAC Capital Advisors LP, the latest in a string of client defections that have occurred amid scrutiny of the hedge-fund firm. * JP Morgan will not be trying 'staple financing' in the potential Dell deal, a possible ramification of a court decision criticizing what was once a common practice on Wall Street. * Samsung Electronics Co on Friday said its fourth-quarter profit rose 76 percent to a record high on strong smartphone sales and higher margins in its chip business. * Morgan Stanley Chairman and Chief Executive James Gorman is expected to take a second straight annual pay cut for 2012, as the securities firm continues to struggle to get back on track. * Casino operator Las Vegas Sands Corp has stopped executing international money transfers for its high-rolling customers and is overhauling its compliance procedures as it faces scrutiny from U.S. and international regulators, people familiar with the matter said. * Bristol-Myers Squibb Co agreed to pay $80 million to settle cases involving 15 patients killed or hurt during company-sponsored testing of an experimental drug for hepatitis C.   FT BARCLAYS EXECUTIVES FACE MOUNTING LIBOR PRESSURE Top executives at Barclays were aware the bank was manipulating its submissions to Libor rate-setting panel in November 2011, almost a year earlier than previously disclosed, emails suggested. (link.reuters.com/tud55t) OSBORNE STICKS TO AUSTERITY PLAN Finance minister George Osborne will not be diverted from his austerity plan even if data on the strength of British economy disappoints. (link.reuters.com/xud55t) GOVERNMENT TO DELIVER CHILDCARE BOOST Britain's coalition government is planning to spend 1.5 billion pounds on a package of measures to help families cope with nursery fees. (link.reuters.com/vud55t) FEARS RAISED OVER ECB FUNDING SCHEME Senior bankers are becoming increasingly concerned about the European Central Bank's special longer-term funding scheme, saying that it could encourage the creation of a two-tier banking market. (link.reuters.com/dyd55t) RETAILERS MAKE APPEAL ON TAX AVOIDANCE High street retailers said the government needed to take action to stop tax avoidance by multinational companies. (link.reuters.com/bed55t) RIM BOOSTED BY LENOVO INTEREST Lenovo has signalled it could be interested in buying Research In Motion, lifting the shares in the troubled Canadian maker of BlackBerry smartphones   NYT * U.S. President Barack Obama tapped Mary Jo White, a former United States attorney turned white-collar defense lawyer, to lead the Securities and Exchange Commission. He also renominated Richard Cordray as director of the Consumer Financial Protection Bureau. * Jill Sommers, a Republican regulator overseeing the investigation into MF Global's collapse, has abruptly decided to depart the Commodity Futures Trading Commission, the agency said. * After a year of mixed financial performance at Morgan Stanley, the firm's chief executive, James Gorman, is expected to take a second annual pay cut. * AT&T sold a record number of smartphones over the holiday season, but its quarterly earnings took a hit from pension costs and Hurricane Sandy. * Microsoft's biggest product in decades, Windows 8, helped lift sales of the company's flagship operating system business, but not enough to rejuvenate overall growth. * Greenhill reported a 4 percent drop in advisory revenue last year, a week after larger rivals JPMorgan Chase & Co and Morgan Stanley posted much larger declines. * HCA Holdings, the largest profit-making hospital chain in the United States, was ordered to pay $162 million after a judge ruled that it had failed to abide by an agreement to make improvements to dilapidated hospitals that it bought in the Kansas City area several years ago. * A federal appeals court in the United States tossed out $172 million in damages that Mattel had been ordered to pay MGA Entertainment, the maker of Bratz dolls. It was the latest move in a bitter nine-year legal dis   Canada THE GLOBE AND MAIL * An executive from a Quebec engineering firm has testified that many of the province's top engineering companies, including the troubled giant SNC Lavalin Group Inc, colluded to pay political kickbacks and to win fixed construction contracts. Michel Lalonde, the president of Genius Conseil, told Quebec's construction inquiry on Thursday that a list of top companies were complicit in the scheme to secure road and sewer design and construction surveillance contracts by sending bribes and kickbacks to the political party headed by the city's mayor. * Shawn Atleo, national chief of Assembly of First Nations, said any divisions in the aboriginal community are trumped by shared objectives, including ending "the status quo", and that many of the community's goals are similar to those of the rest of Canadians. Reports in the business section: * Talisman Energy Inc plans to slash its general and administrative (G&A) costs by "at least 20 per cent over all", Helen Wesley, the company's executive vice president of corporate services, told the CIBC Whistler Institutional Investor Conference on Thursday. * Agrium Inc raised its fourth-quarter earnings estimate based on robust grain and oilseed prices that are helping boost demand for its fertilizers and other products. The Calgary-based company said it expects fourth-quarter earnings to be slightly above C$2 per share, compared with its previous guidance of C$1.50 to C$1.90. NATIONAL POST * Facing drastically falling oil revenue, Alberta Premier Alison Redford set the stage for serious spending cuts and possible tax hikes during a televised fireside chat on Thursday. Redford blamed a "bitumen bubble" and warned Albertans about austere times to come. The government has forecast a deficit in the current fiscal year of C$3 billion. FINANCIAL POST * At least one Calgary oil executive is appealing to Canadian pocket books as the U.S. state department decides the fate of TransCanada Corp's Alberta-to-Texas Keystone XL pipeline. Export constraints on Alberta heavy oil production are costing each Canadian C$1,200 per year, Cenovus Energy Inc CEO Brian Ferguson said on Thursday. * Canadian wireless carriers must make changes to their networks and systems to support 911 emergency text messages from hearing and speech impaired persons, the federal telecom regulator said on Thursday. The service would only be provided to the hearing and speech impaired who have pre-registered for it with their wireless carrier, the Canadian Radio-television and Telecommunications Commission (CRTC) said.   China CHINA SECURITIES JOURNAL -- China will build six control standards, including PM2.5, in 113 cities and will release the monitoring data before the end of December this year, Environment Minister Zhou Shengxian said. -- The number of Chinese mobile phone users reached 1.11 billion as of the end of 2012, according to Ministry of Industry and Information Technology data released on Thursday. -- China Financial Futures Exchanges has approved the application of account opening from several QFII institutions. CHINA DAILY (www.chinadaily.com.cn) -- Alibaba Group Holdings, China's largest e-commerce company, plans to join hands with partners to build a logistics network across China that can support 100 billion yuan worth of transactions a year within the next decade. -- China is expected to lead emerging economies in spending on consumable products, with an estimated average annual increase in total consumer spending of 15 percent every year to 2016, according to a report released by the Economist Intelligence Unit and U.K. research firm Mintel. SHANGHAI DAILY -- Shanghai expects to set up China's first free trade zone in Waigaoqiao in Pudong New Area as the city bids to become a global trade hub by 2020, a senior official said. Unlike a bonded area, a free trade zone offers businesses lower taxes, a more liberal currency exchange and better efficiency due to less supervision. CHINA BUSINESS NEWS -- New bank loans in January are expected to reach between 1 trillion yuan and 1.2 trillion yuan as the economy rebounds, according to market participants. Total new loans for 2013 are expected to reach 8.5 trillion yuan to 9 trillion yuan.   Fly On The Wall 7:00 Market Snapshot ANALYST RESEARCH Upgrades AMC Networks (AMCX) upgraded to Equal Weight from Underweight at Morgan StanleyAutodesk (ADSK) upgraded to Conviction Buy from Sell at GoldmaneBay (EBAY) upgraded to Outperform from Market Perform at BernsteinEQT Midstream Partners (EQM) upgraded to Outperform from Neutral at Credit SuisseHorizon Bancorp (HBNC) upgraded to Outperform from Market Perform at Raymond JamesJPMorgan (JPM) upgraded to Buy from Hold at Deutsche BankKLA-Tencor (KLAC) upgraded to Hold from Sell at Deutsche BankNetEase.com (NTES) upgraded to Buy from Neutral at UBSQLogic (QLGC) upgraded to Equal Weight from Underweight at Morgan StanleySTMicroelectronics (STM) upgraded to Outperform from Neutral at Exane BNP ParibasSony (SNE) upgraded to Buy from Neutral at BofA/MerrillTiffany (TIF) upgraded to Overweight from Neutral at HSBCUnion First Market (UBSH) upgraded to Outperform from Neutral at RW Baird Downgrades Canadian Pacific (CP) downgraded to Sell from Hold at CanaccordCity National (CYN) downgraded to Neutral from Buy at SunTrustDime Community (DCOM) downgraded to Equal Weight from Overweight at BarclaysFlextronics (FLEX) downgraded to Neutral from Buy at UBSFlowserve (FLS) downgraded to Buy from Strong Buy at CL KingFord (F) downgraded to Equal Weight from Overweight at BarclaysGoldman Sachs (GS) downgraded to Hold from Buy at Deutsche BankGoldman Sachs (GS) downgraded to Neutral from Buy at CitigroupHanmi Financial (HAFC) downgraded to Market Perform from Outperform at FBR CapitalIAMGOLD (IAG) downgraded to Neutral from Buy at BofA/MerrillJanus Capital (JNS) downgraded to Sell from Neutral at CitigroupJanus Capital (JNS) downgraded to Underperform from Neutral at Credit SuisseMedtronic (MDT) downgraded to Hold from Buy at WunderlichNoble Corp. (NE) downgraded to Hold from Buy at JefferiesScripps Networks (SNI) downgraded to Underweight from Equal Weight at Morgan StanleySelect Comfort (SCSS) downgraded to Equal Weight from Overweight at BarclaysSkullcandy (SKUL) downgraded to Neutral from Overweight at Piper JaffrayUnited Continental (UAL) downgraded to Underperform from Neutral at BofA/MerrillVirginia Commerce (VCBI) downgraded to Market Perform from Outperform at FBR Capital Initiations Accenture (ACN) initiated with an Overweight at EvercoreActavis (ACT) initiated with an Overweight at Morgan StanleyAmazon.com (AMZN) initiated with a Buy at ISI GroupAon Corp. (AON) initiated with a Market Perform at Wells FargoBioMed Realty (BMR) initiated with a Neutral at GoldmanBioScrip (BIOS) initiated with a Buy at SunTrustBoston Properties (BXP) initiated with an Overweight at EvercoreBrown & Brown (BRO) initiated with a Market Perform at Wells FargoForestar Group (FOR) initiated with a Buy at DA DavidsonMarsh & McLennan (MMC) initiated with an Outperform at Wells FargoPark-Ohio (PKOH) initiated with an Outperform at Imperial CapitalRed Hat (RHT) initiated with an Outperform at Northland SecuritiesStarz (STRZA) initiated with a Sell at Stifel NicolausStarz (STRZA) initiated with an Underweight at Evercore HOT STOCKS AT&T (T) sees FY13 EPS growth to be upper-single digits or higherConsensus for FY13 revenue is $128.3BSees FY13 consolidated margins to be stableStarbucks (SBUX) targets opening of about 1,300 net new stores globally in FY13Expects to open 1,500 new stores in U.S. over next five yearsSaid China a ”significant market opportunity,” expects to have 1,500 stores there by 2015Court of Appeals agreed with Mattel (MAT), verdict, damages on MGA's claims reversedBelkin to buy Cisco's (CSCO) home networking unitJuniper (JNPR): Trends driving network investment in cloud/mobility intactSees improved momentum in routing in 2013 in Europe and U.S. Expects to expand FY13 operating margins City National (CYN) expects net income to grow 'very modestly' in 2013US Airways (LCC) reached tentative agreement with flight attendants EARNINGS Companies that beat consensus earnings expectations last night and today include:KLA-Tencor (KLAC), Synaptics (SYNA), QLogic (QLGC), ResMed (RMD), Rambus (RMBS), Tempur-Pedic (TPX), Juniper (JNPR), Microsoft (MSFT), Cirrus Logic (CRUS) Companies that missed consensus earnings expectations include:Key Technology (KTEC), E-Trade (ETFC), Sterling Financial (STSA), AT&T (T) Companies that matched consensus earnings expectations include:Western Alliance (WAL), IBERIABANK (IBKC), Starbucks (SBUX) NEWSPAPERS/WEBSITES U.S. electricity producers have increased their use of natural gas now that technological advances have unlocked vast amounts of the fuel in shale rock formations. But executives at some top utilities are wary of relying too heavily on natural gas to make electricity, concerned that its current low price may not last, the Wall Street Journal reportsAs Samsung Electronics (SSNLF) and Apple (AAPL) attempt to defend their dominance in the smartphone market, the latest data show China’s Huawei Technologies Co. ranked third in terms of market share for the first time, an indication that a rapid increase of smartphone users in China and other emerging markets may be starting to alter the global landscape, the Wall Street Journal reportsInnovation Network Corp. of Japan, a Japanese state-backed fund, wants a Nissan Motor Co. (NSANY) and NEC Corp. JV to buy Sony’s (SNE) lithium-ion battery unit to prevent rivals in China and Taiwan from getting its technology as the TV maker looks to offload non-core businesses, the Daily Yomiuri said, Reuters reportsLockheed Martin (LMT) is challenging the U.S. government in court over $13.6M in research tax credits in a case that tests the often unclear line between research and production, with future R&D claims by other companies possibly at stake, Reuters reportsFed Chairman Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3T as he shows no sign of softening his effort to bring down 7.8% unemployment, Bloomberg reportsOver half of the $18T in national daily trading of energy swaps has moved to futures exchanges from the over-the-counter market in response to the U.S. regulatory overhaul aimed at increasing transparency--Dodd-Frank--following the 2008 financial crisis, Bloomberg reports SYNDICATE Adecogro (AGRO) files to sell 8.7M shares of common stock for holdersAnthera Pharmaceuticals (ANTH) files to sell common stockArrowHead Research (ARWR) files to sell common stock and warrantsBG Medicine (BGMD) enters $12M common stock purchase agreement with Aspire CapitalBright Horizons (BFAM) 10.1M share IPO priced at $22.00Chuy's (CHUY) 4.5M share Secondary priced at $25.00

25 января 2013, 07:45

Visualizing Platinum & Palladium's Place In The World

The platinum group of metals (PGMs) have received some perhaps unwarranted attention in recent weeks as the 'coin' idiocy came and went; but, it is noteworthy, as Eric Sprott points out that with demand rising and supply under pressure, the outlook for investment in physical platinum and palladium is increasingly compelling. The following infographic (and various supply and demand dynamics) provides a succinct picture of what these metals are used for, where they are produced, and the supply/demand imbalances.   Source: Sprott Physical Bullion Trusts Reasons To Own Platinum and Palladium SUPPLY 1. PGMs have a high supply risk. In the British Geological Survey's Risk List 2012, the platinum group of metals (PGMs), of which platinum and palladium are widely viewed as the most significant, received a high supply risk index based on the list's seven criteria: scarcity in the Earth's crust; production concentration-location of principal producers and contribution to global supply; reserve distribution-global distribution of reserves; recycling rate; substitutability; governance (top producing nation); and governance (top reserve-hosting nation). 2. Overall global supplies of platinum and palladium are expected to decrease substantially in 2012, resulting in supply deficits. A substantial reduction in primary and secondary supply is expected to move the platinum and palladium market from surplus to deficit in 2012, according to the Johnson Matthey Platinum 2012 Interim Review. Gross demand for platinum is predicted to remain firm, however, severe disruptions to platinum mining are expected to result in a 10% drop in global mine production of platinum. The report also estimates an 11% decline in supplies from recycling. Together, these factors are expected to result in an overall 10% decline in worldwide platinum supplies and a deficit of 400,000 oz. Gross demand for palladium is predicted to increase 15%. However, both mine production and recycling are expected to contract by 4% each, and stock sales by more than two thirds, resulting in a deficit of 915,000 oz. 3. Production is highly concentrated in only two countries Unlike many other metals that are found in numerous regions, the majority of platinum and palladium production is concentrated in South Africa and Russia, which combined to account for 88% of platinum production and 80% of palladium production in 2011. 4. Widespread labour disruption, mine closures and other issues are negatively impacting the supply of platinum and palladium from South Africa, which produced more than half of the supply of the metals in 2011. Platinum supplies from South Africa, which accounted for 75% of global production in 2011, are projected to fall to an 11-year low in 2012, declining 19% from the peak in 2006. The country is also the second largest producer of palladium but supplies of this metal are projected to drop more than 6% in 2012. A myriad of issues in the country are lowering cash profit margins and resulting in less supply of the metals, including labour disputes, closure of marginal operations, declining ore grades, , and progressively lower depths required for mining operations in some locations. Additionally, the availability and cost of electrical power continues to be precarious and the uncertain political environment, including increased rhetoric and political pressure regarding possible nationalization and/or ''super'' taxation, could reduce the ability and willingness of industry participants to make the necessary investments to sustain current supply. 5. Dwindling stockpiles of palladium in Russia are nearing depletion and may not be able to offset declines in mine production. Russia is the largest source of palladium, through both mining and state sales of stockpiles. However, the supply of the metal from existing stockpiles is projected to drop 68% in 2012 and is expected to account for just 3% of global supply. Additionally, mining supply is projected to drop by approximately 4% in 2012 and active mines in the Norilsk region of Russia are showing declining grades of ore extracted, which suggest that production levels at these mines may have peaked.. 6. Alternative sources of new supply for platinum and palladium are not readily available. North America accounted for just over 5% and 13% of global mine production of platinum and palladium, respectively, in 2011. However, production of both metals in the region is projected to decline slightly in 2012. The only region expected to increase platinum and palladium production in 2012 is Zimbabwe, though it remains a relatively small producer of the metals. However, increasing political tensions and threats over security of tenure in the country has deterred new investment. 7. The majority of platinum and palladium producers are operating at a loss. The cash costs and capital expenditures required to mine a 3E PGM oz (~60% platinum, ~30% palladium, and ~10% rhodium) have risen to a level such that most mine production is already cash flow negative.  Only five companies are slightly cash margin positive after accounting for capital expenditures. A 15-year trend of declining ore grades and anticipated labour settlements with increased wages are expected to further increase cost and stress balance sheets for these producers. DEMAND 8. There are diverse sources of demand for platinum and palladium. More than a quarter of the demand for platinum and palladium is from non-autocatalyst industrial uses. For platinum, sectors utilizing the metal include petroleum refining, electrical, glass manufacturing, medical, biomedical and dental, and other manufacturing such as turbines. For palladium, demand comes from the electronics (as resistors and capacitors in circuit boards), dental and chemical industries. The metals are also used in jewelry, particularly platinum which is sought after for its rarity, silvery-white lustre and resistance to wear and tarnish. 9. More stringent vehicle emission standards continue to drive demand growth for platinum/palladium in autocatalysts. Due to their powerful catalytic properties, platinum and palladium are essential components in catalytic converters in automobiles as they form the surface catalyst upon which the critical chemical reaction converting engine exhaust emissions into neutral compounds occurs, resulting in the reduction of the toxic components from combustion. There is no widely used substitute for the metals in autocatalysts and emission standards are becoming increasingly stringent across Asia increasing platinum/palladium loadings per vehicle. Demand for palladium in autocatalysts is expected to grow by 7% to an all-time high of 6.5 million oz in 2012, resulting in a combined 5% increase in autocatalyst demand for the two metals to 9.6 million ounces. For 2013, automotive demand for palladium is anticipated to grow by 24% and for platinum by 13%. 10. China is an increasingly important demand driver for both platinum and palladium. China recently surpassed the U.S. to become the largest auto maker globally and auto sales are projected to grow at 5% per annum over the next three years, according to IHS Global.   Palladium loadings per gasoline powered vehicle produced in China have approximately tripled over the past decade and in 2010, China adopted the Euro IV emission standard, which is expected to materially increase the PGM loadings in Chinese-produced vehicles. The country's demand for platinum in jewelry, particularly among the younger generation, comprised close to 70% of the global share in 2011 and is growing. From 2006 to 2011, platinum purchases doubled on the Shanghai Exchange. 11. Strong long-term annualized returns and uncertainty about the global financial system has the potential to take more supply of platinum and palladium off the market. The returns on both platinum and palladium outpaced the S&P 500 Total Return Index in the ten years leading up to November 21, 2012, according to Bloomberg. The Manager of the Trust believes investor demand, through ETFs and funds acquiring the physical bullion, may increase as investors seek to protect their portfolios from inflation, deflation, economic slowdown and currency devaluation.