Billionaire Warren Buffett is retiring from the board of Washington Post Co., the publishing company in which his Berkshire Hathaway Inc. is the largest shareholder.
Buffett, who joined the board in 1974, will remain a director until the end of his term in May and won’t seek re- election, Washington Post said today in a statement distributed by Business Wire. He’ll continue to consult with the company.
Buffett, 80, is preparing Omaha, Nebraska-based Berkshire for his eventual departure. Last year, the company announced the addition of money manager Todd Combs to help oversee investments. Buffett stepped down from the board of Coca-Cola Co. in 2006, and the soft-drink maker said in December that his son Howard Buffett was becoming a director.
Washington Post gained $2.61 to $426 at 1:44 p.m. in New York Stock Exchange composite trading. Berkshire was little changed.
Buffett, Berkshire’s chairman, chief executive officer and biggest shareholder, built the company over four decades. He launched a succession plan in 2006. Buffett oversees more than 70 operating units and an investment portfolio that contains the biggest stakes in Wells Fargo & Co. and Atlanta-based Coca-Cola.
Melinda French Gates, who runs the Bill & Melinda Gates Foundation with her husband, Microsoft Corp.’s co-founder, stepped down from Washington Post’s board in November.
The Washington Post newspaper’s average weekday readership was 545,345 in the six months through September, down 6.4 percent from a year earlier, according to Audit Bureau of Circulations data. That compares with a 5 percent drop industrywide.
(source : Bloomberg)
Friday, January 21, 2011
Major Correction In KLSE is Looming Soon ?
Stop Press on KLSE .....
Recent rise in majority stocks raise concern that the good time might be ending soon. As KLSE continue to break new historical high as well as ultra high volumn speak for itself that the danger is in the making that there is a concern of major correction is on its way. Time to retrieve and keep your "bullet"....
Recent rise in majority stocks raise concern that the good time might be ending soon. As KLSE continue to break new historical high as well as ultra high volumn speak for itself that the danger is in the making that there is a concern of major correction is on its way. Time to retrieve and keep your "bullet"....
Saturday, January 15, 2011
Malaysia Major Stock Broking Houses And The Way Forward ....
KUALA LUMPUR: Friday, 14 January 2011 12:09
Olympia Industries Bhd and Kretam Holdings Bhd — announced that their standalone stockbroking units had received the Securities Commission’s (SC) nod to undertake activities accorded to a 1+1 stockbroking company.
They were given the 1+1 status, which allows them to open branches, provide electronic access facilities and undertake structured products offerings, without having to conduct a merger with another player.
According to both companies’ announcements, the approvals given to Jupiter Securities Sdn Bhd and Innosabah Securities Bhd, owned by Olympia and Kretam respectively, were provided under the Alternative Mechanism to Fulfilling the Consolidation Requirement Under the Policy Framework for Stockbroking Industry Consolidation.
In a reply to queries by The Edge Financial Daily recently, a SC spokesperson said the “alternative mechanism” represented the conclusion to the Consolidation Policy that was initiated in April 2000.
Standalone brokers can now get 1+1 status with access to more revenue-generating ops.
While the alternative mechanism is not a new policy, this is the first time that the SC has actually utilised the mechanism to give a lift-up to standalone stockbroking firms, which had failed to undertake a 1+1 merger as per the SC’s initiatives 10 years ago and thus had been left out of the opportunities to expand their business via opening more branches.
“This will effectively enhance the value of these stockbroking companies, as they now have access to more revenue-generating operations without having to pay premium in acquiring another standalone stockbroking company,” an industry observer said, adding that some of these standalone stockbrokers now stand a better chance of attracting suitors from abroad.
The alternative mechanism was seen as a second chance for standalone broking firms. Currently, only six standalone stockbroking companies remain in the country. They are BIMB Securities Sdn Bhd, FA Securities Sdn Bhd, Innosabah, Jupiter Securities, Malacca Securities Sdn Bhd and SJ Securities Sdn Bhd.
Some of these firms had attempted mergers previously. In 2001, Jupiter Securities was in talks to acquire Innosabah to tap into the Sabah equities market. However, the agreement lapsed in 2002.
There are 26 non-bank backed “capital market intermediaries” currently. These comprise one universal broker (PM Securities), six 1+1 brokers (including TA Securities, Interpacific Securities and Apex Securities), six standalone investment banks (including OSK Investment Bank and Kenanga Investment Bank), seven foreign stockbroking outfits (such as CLSA, UBS and JP Morgan), and six standalone brokers.
However, there are certain criteria that standalone brokers would have to meet for the 1+1 status to be accorded.
The SC spokesperson said the alternative mechanism required standalone stockbroking companies to commit investments to strengthen their operational framework and to contribute to an industry development fund. The regulator, however, was mum on the amount of funds that these brokerage outfits are required to commit.
The brokers are required to allocate a budget to enhance the current front office system by investing in a new order management system within three years of the development plan. This is to strengthen these firms’ operation framework and promote investment in the stock market.
The SC would only formally recognise their 1+1 status when all the conditions are met.
Standalone brokers were required to have a minimum paid-up capital of RM20 million and shareholders’ funds of RM20 million. Nonetheless, their expansion was capped as they were not allowed to open branches or offer other products and services apart from broking activities.
Since 2000, some of the stockbroking companies such as OSK and Kenanga had moved on to become full-fledged investment banks, which require an even higher minimum paid-up capital of RM500 million. Fast track into 2011, firms like OSK not only have operations in Malaysia but is known as a regional financial services firm with branches in Singapore, Hong Kong and Indonesia.
“No doubt standalone brokers had avoided paying a steep premium for the 1+1 status. But as they were unable to expand over the last 10 years, they have lost a lot of business opportunities to their old rivals, which have grown much bigger. They will have a lot of catching up to do,” says an industry observer.
Source : The Edge
Olympia Industries Bhd and Kretam Holdings Bhd — announced that their standalone stockbroking units had received the Securities Commission’s (SC) nod to undertake activities accorded to a 1+1 stockbroking company.
They were given the 1+1 status, which allows them to open branches, provide electronic access facilities and undertake structured products offerings, without having to conduct a merger with another player.
According to both companies’ announcements, the approvals given to Jupiter Securities Sdn Bhd and Innosabah Securities Bhd, owned by Olympia and Kretam respectively, were provided under the Alternative Mechanism to Fulfilling the Consolidation Requirement Under the Policy Framework for Stockbroking Industry Consolidation.
In a reply to queries by The Edge Financial Daily recently, a SC spokesperson said the “alternative mechanism” represented the conclusion to the Consolidation Policy that was initiated in April 2000.
Standalone brokers can now get 1+1 status with access to more revenue-generating ops.
While the alternative mechanism is not a new policy, this is the first time that the SC has actually utilised the mechanism to give a lift-up to standalone stockbroking firms, which had failed to undertake a 1+1 merger as per the SC’s initiatives 10 years ago and thus had been left out of the opportunities to expand their business via opening more branches.
“This will effectively enhance the value of these stockbroking companies, as they now have access to more revenue-generating operations without having to pay premium in acquiring another standalone stockbroking company,” an industry observer said, adding that some of these standalone stockbrokers now stand a better chance of attracting suitors from abroad.
The alternative mechanism was seen as a second chance for standalone broking firms. Currently, only six standalone stockbroking companies remain in the country. They are BIMB Securities Sdn Bhd, FA Securities Sdn Bhd, Innosabah, Jupiter Securities, Malacca Securities Sdn Bhd and SJ Securities Sdn Bhd.
Some of these firms had attempted mergers previously. In 2001, Jupiter Securities was in talks to acquire Innosabah to tap into the Sabah equities market. However, the agreement lapsed in 2002.
There are 26 non-bank backed “capital market intermediaries” currently. These comprise one universal broker (PM Securities), six 1+1 brokers (including TA Securities, Interpacific Securities and Apex Securities), six standalone investment banks (including OSK Investment Bank and Kenanga Investment Bank), seven foreign stockbroking outfits (such as CLSA, UBS and JP Morgan), and six standalone brokers.
However, there are certain criteria that standalone brokers would have to meet for the 1+1 status to be accorded.
The SC spokesperson said the alternative mechanism required standalone stockbroking companies to commit investments to strengthen their operational framework and to contribute to an industry development fund. The regulator, however, was mum on the amount of funds that these brokerage outfits are required to commit.
The brokers are required to allocate a budget to enhance the current front office system by investing in a new order management system within three years of the development plan. This is to strengthen these firms’ operation framework and promote investment in the stock market.
The SC would only formally recognise their 1+1 status when all the conditions are met.
Standalone brokers were required to have a minimum paid-up capital of RM20 million and shareholders’ funds of RM20 million. Nonetheless, their expansion was capped as they were not allowed to open branches or offer other products and services apart from broking activities.
Since 2000, some of the stockbroking companies such as OSK and Kenanga had moved on to become full-fledged investment banks, which require an even higher minimum paid-up capital of RM500 million. Fast track into 2011, firms like OSK not only have operations in Malaysia but is known as a regional financial services firm with branches in Singapore, Hong Kong and Indonesia.
“No doubt standalone brokers had avoided paying a steep premium for the 1+1 status. But as they were unable to expand over the last 10 years, they have lost a lot of business opportunities to their old rivals, which have grown much bigger. They will have a lot of catching up to do,” says an industry observer.
Source : The Edge
Friday, December 31, 2010
Singapore Airlines : The World Most Profitable Airlines .. Moving Forward
Dec 31, 2010 12:00 AM GMT+0800
Singapore Airlines Ltd.’s Goh Choon Phong, who takes over as chief executive officer tomorrow, may shed the last major remains of the carrier’s global expansion strategy as he confronts rising competition in Asia.
Goh, 47, may get offers for the airline’s 49 percent stake in Virgin Atlantic after the U.K. carrier said this month it had received tie-up inquiries. Outgoing CEO Chew Choon Seng called the investment “underperforming” two years ago and has said the airline would consider a sale.
In Asia, Goh faces low-fare competition on long-haul routes from Jetstar and AirAsia X Sdn., as well as renewed efforts by Cathay Pacific Airways Ltd. and Korean Air Lines Co. to lure lucrative business-class travelers. Middle East carriers Emirates Airline, Qatar Airways Ltd. and Etihad Airways have also ordered close to 300 planes since 2007 as they build hubs linking Europe and the Asia-Pacific region.
Virgin, 51 percent owned by billionaire Richard Branson, hired Deutsche Bank AG to explore options as British Airways Plc boosts cooperation with American Airlines across the Atlantic and completes a merger with Madrid-based Iberia Lineas Aereas de Espana SA. Singapore Air bought its stake in a 600 million-pound ($930 million) investment concluded in 2000.
Singapore Air would consider “interesting opportunities” for the stake, Nicholas Ionides, a spokesman, said in an e-mail. Goh, who joined the carrier as a cadet administrative officer in 1990 after graduating from the Massachusetts Institute of Technology, declined interview requests, he said.
Virgin Offer
Whether Singapore Air will sell the Virgin stake will largely depend on what price is offered since the carrier isn’t short of funds, said Rohan Suppiah, an analyst at Kim Eng Securities Pte in Singapore.
“SIA isn’t in a hurry to sell, but if they get a fair price they will,” he said. “Virgin hasn’t provided any significant synergies over the years.”
Delta Air Lines Inc. and Middle East airlines are among carriers exploring a Virgin tie-up, Sky News reported this month, without saying where it got the information from. Singapore Air’s stake complicates a deal as local ownership rules limit non-European investors to minority stakes.
“Either Singapore Air sells or Branson loses effective control by selling part of his stake,” said Andrew Miller, chief executive officer of CAPA Consulting LLC, which advises airlines.
Very Supportive
Singapore Air is “very supportive of our business strategy including the review by Deutsche Bank,” Greg Dawson, a Virgin spokesman, said without elaborating. Virgin operates 38 twin- aisle planes, according to its website.
Chew’s predecessor, Cheong Choong Kong, bought stakes in Virgin and Air New Zealand Ltd. to expand overseas. The value of the Air NZ investment was written down in 2001, and the remaining holdings were sold off three years later. Virgin was expected to hold an initial public offering within three to five years of Singapore Air’s investment, Chew said in 2006.
Shares Trailing
Singapore Air, which operates 110 planes, has trailed the 15-stock Bloomberg Asia Pacific Airlines Index this year amid rising competition for premium and low-cost travelers. The shares have climbed 4 percent, compared with the index’s 27 percent gain.
Competition is intensifying in the premium market, which accounts for about 40 percent of Singapore Air’s sales. Hong Kong-based Cathay Pacific is working on a HK$1 billion ($128 million) business-class upgrade to lure executive travelers.
Korean Air, which aims to get 50 percent of passenger sales from premium classes by 2019, will receive its first five Airbus SAS A380s next year. The superjumbos will each be fitted with 94 business-class seats, compared with the 60 found in Singapore Air’s A380s. Emirates is building a fleet of 90 A380s.
Budget Competition
Singapore Air has responded to budget competition through a 33 percent stake in Tiger Airways Holdings Ltd. The low-cost affiliate, which operates from Singapore and Australia, plans to form a budget airline in Bangkok next year with Thai Airways International Pcl.
Tiger, Qantas Airways Ltd.’s Jetstar and AirAsia Bhd. are leading discount carriers’ market share gains in Asia as they add new planes. Budget airlines accounted for about 22 percent of passengers in the first 10 months of the year at Singapore’s Changi airport. That compares with 12 percent in 2008, according to data from operator Changi Airport Group.
Low-fare carriers are also adding intercontinental routes. Jetstar started flights to Melbourne from Singapore this month, touting fares 30 percent cheaper than full-service airlines. It plans to add more long-haul services next year. AirAsia’s long- haul affiliate is offering flights to Australia, London and Japan from its base in Kuala Lumpur.
Singapore Air’s corporate travel base and reputation will be an asset as Goh faces the new competition, said Steven Lim, who manages about $200 million at Daiwa SB Investments Ltd. in Singapore. The carrier, among six airlines with Skytrax’s highest five-star rating, has also been profitable every year since going public in 1985.
“As a business hub, Singapore Air does enjoy the advantage of business travel,” Lim said. “Goh’s immediate challenge is to continue Chew’s good work, keep the company’s profit record intact and maintain the reputation Singapore Air has as a premium airline.”
Source : Bloomberg
Singapore Airlines Ltd.’s Goh Choon Phong, who takes over as chief executive officer tomorrow, may shed the last major remains of the carrier’s global expansion strategy as he confronts rising competition in Asia.
Goh, 47, may get offers for the airline’s 49 percent stake in Virgin Atlantic after the U.K. carrier said this month it had received tie-up inquiries. Outgoing CEO Chew Choon Seng called the investment “underperforming” two years ago and has said the airline would consider a sale.
In Asia, Goh faces low-fare competition on long-haul routes from Jetstar and AirAsia X Sdn., as well as renewed efforts by Cathay Pacific Airways Ltd. and Korean Air Lines Co. to lure lucrative business-class travelers. Middle East carriers Emirates Airline, Qatar Airways Ltd. and Etihad Airways have also ordered close to 300 planes since 2007 as they build hubs linking Europe and the Asia-Pacific region.
Virgin, 51 percent owned by billionaire Richard Branson, hired Deutsche Bank AG to explore options as British Airways Plc boosts cooperation with American Airlines across the Atlantic and completes a merger with Madrid-based Iberia Lineas Aereas de Espana SA. Singapore Air bought its stake in a 600 million-pound ($930 million) investment concluded in 2000.
Singapore Air would consider “interesting opportunities” for the stake, Nicholas Ionides, a spokesman, said in an e-mail. Goh, who joined the carrier as a cadet administrative officer in 1990 after graduating from the Massachusetts Institute of Technology, declined interview requests, he said.
Virgin Offer
Whether Singapore Air will sell the Virgin stake will largely depend on what price is offered since the carrier isn’t short of funds, said Rohan Suppiah, an analyst at Kim Eng Securities Pte in Singapore.
“SIA isn’t in a hurry to sell, but if they get a fair price they will,” he said. “Virgin hasn’t provided any significant synergies over the years.”
Delta Air Lines Inc. and Middle East airlines are among carriers exploring a Virgin tie-up, Sky News reported this month, without saying where it got the information from. Singapore Air’s stake complicates a deal as local ownership rules limit non-European investors to minority stakes.
“Either Singapore Air sells or Branson loses effective control by selling part of his stake,” said Andrew Miller, chief executive officer of CAPA Consulting LLC, which advises airlines.
Very Supportive
Singapore Air is “very supportive of our business strategy including the review by Deutsche Bank,” Greg Dawson, a Virgin spokesman, said without elaborating. Virgin operates 38 twin- aisle planes, according to its website.
Chew’s predecessor, Cheong Choong Kong, bought stakes in Virgin and Air New Zealand Ltd. to expand overseas. The value of the Air NZ investment was written down in 2001, and the remaining holdings were sold off three years later. Virgin was expected to hold an initial public offering within three to five years of Singapore Air’s investment, Chew said in 2006.
Shares Trailing
Singapore Air, which operates 110 planes, has trailed the 15-stock Bloomberg Asia Pacific Airlines Index this year amid rising competition for premium and low-cost travelers. The shares have climbed 4 percent, compared with the index’s 27 percent gain.
Competition is intensifying in the premium market, which accounts for about 40 percent of Singapore Air’s sales. Hong Kong-based Cathay Pacific is working on a HK$1 billion ($128 million) business-class upgrade to lure executive travelers.
Korean Air, which aims to get 50 percent of passenger sales from premium classes by 2019, will receive its first five Airbus SAS A380s next year. The superjumbos will each be fitted with 94 business-class seats, compared with the 60 found in Singapore Air’s A380s. Emirates is building a fleet of 90 A380s.
Budget Competition
Singapore Air has responded to budget competition through a 33 percent stake in Tiger Airways Holdings Ltd. The low-cost affiliate, which operates from Singapore and Australia, plans to form a budget airline in Bangkok next year with Thai Airways International Pcl.
Tiger, Qantas Airways Ltd.’s Jetstar and AirAsia Bhd. are leading discount carriers’ market share gains in Asia as they add new planes. Budget airlines accounted for about 22 percent of passengers in the first 10 months of the year at Singapore’s Changi airport. That compares with 12 percent in 2008, according to data from operator Changi Airport Group.
Low-fare carriers are also adding intercontinental routes. Jetstar started flights to Melbourne from Singapore this month, touting fares 30 percent cheaper than full-service airlines. It plans to add more long-haul services next year. AirAsia’s long- haul affiliate is offering flights to Australia, London and Japan from its base in Kuala Lumpur.
Singapore Air’s corporate travel base and reputation will be an asset as Goh faces the new competition, said Steven Lim, who manages about $200 million at Daiwa SB Investments Ltd. in Singapore. The carrier, among six airlines with Skytrax’s highest five-star rating, has also been profitable every year since going public in 1985.
“As a business hub, Singapore Air does enjoy the advantage of business travel,” Lim said. “Goh’s immediate challenge is to continue Chew’s good work, keep the company’s profit record intact and maintain the reputation Singapore Air has as a premium airline.”
Source : Bloomberg
Tuesday, December 28, 2010
UK Retails Up by 30% during Christmas Week
LONDON:
Sales in the week to Christmas Day had risen by 30.6% compared to the same period last year, to reach 97.1 million pounds ($149.9 million). Britain's retailers are hoping that shoppers will have turned out in force for the traditional Christmas holiday sales period, despite weather and transport problems.
However, most UK retailers are expecting lower sales in 2011 on the back of weak consumer demand and inflationary pressures, a survey by the British Retail Consortium (BRC) said on Monday.
The BRC's survey said nearly two-thirds of retailers it had contacted expected sales to worsen from 2010, and many also expected next year's rise in the VAT (value added tax) levy to impact consumers' spending.
"Our snapshot shows retailers expect a difficult December to be followed by a tough 2011. They believe the VAT rise will contribute to higher prices and, with fears about government cuts and the wider economy, people will be put off spending," BRC director general Stephen Robertson said in a statement.
The BRC added that retailers were still expected to create new jobs in 2011, although 24% of those surveyed said they expected to employ fewer people.
- Reuters
Sales in the week to Christmas Day had risen by 30.6% compared to the same period last year, to reach 97.1 million pounds ($149.9 million). Britain's retailers are hoping that shoppers will have turned out in force for the traditional Christmas holiday sales period, despite weather and transport problems.
However, most UK retailers are expecting lower sales in 2011 on the back of weak consumer demand and inflationary pressures, a survey by the British Retail Consortium (BRC) said on Monday.
The BRC's survey said nearly two-thirds of retailers it had contacted expected sales to worsen from 2010, and many also expected next year's rise in the VAT (value added tax) levy to impact consumers' spending.
"Our snapshot shows retailers expect a difficult December to be followed by a tough 2011. They believe the VAT rise will contribute to higher prices and, with fears about government cuts and the wider economy, people will be put off spending," BRC director general Stephen Robertson said in a statement.
The BRC added that retailers were still expected to create new jobs in 2011, although 24% of those surveyed said they expected to employ fewer people.
- Reuters
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