Reuters blog archive
from Global Investing:
Asian equity markets tend to be casualties of weak yen. That has generally been the case this time too, especially for South Korea.
Data from our cousins at Lipper offers some evidence to ponder, with net outflows from Korean equity funds at close to $700 million in the first three months of the year. That's the equivalent of about 4 percent of the total assets held by those funds. The picture was more stark for Taiwan funds, for whom a similar net outflow equated to almost 10 percent of total AuM. Look more broadly though and the picture blurs; Asia ex-Japan equity funds have seen net inflows of more than $3 billion in the first three months of the year, according to Lipper data.
Analysts polled by Reuters see more drops ahead for the yen which they predict will trade around 102 per dollar by year-end (it was at 77.4 last September). Some banks such as Societe Generale expect a 110 exchange rate and therefore recommend being short on Chinese, Korean and Taiwanese equities.
But the weak yen may not be unilaterally bad news for Asian companies. Morgan Stanley analysts have compiled a list of Asian shares that could gain from falling yen costs. Take India's Maruti-Suzuki. It has zero exposure to yen in terms of revenue but its cost exposure (due to import or components) is 34 percent. A similar picture at China Motor Corp. in Taiwan. Another Taiwanese firm, semiconductor maker Siliconware Precision has a 2 percent revenue exposure to Japan but the yen accounts for 15 percent of its cost base, according to MS data.
from David Rohde:
Amid the politicking, there's an overlooked cause of the Benghazi tragedy
For conservatives, the Benghazi scandal is a Watergate-like presidential cover-up. For liberals, it a fabricated Republican witch-hunt. For me, Benghazi is a call to act on an enduring problem that both parties ignore.
One major overlooked cause of the death of Ambassador Chris Stevens and three other Americans is we have underfunded the State Department and other civilian agencies that play a vital role in our national security. Instead of building up cadres of skilled diplomatic security guards, we have bought them from the lowest bidder, trying to acquire capacity and expertise on the cheap. Benghazi showed how vulnerable that makes us.
from The Great Debate:
As Secretary of State Hillary Clinton wraps up her travels across the African continent to showcase President Obama’s Presidential Policy Directive to advance the “prosperity, security and dignity of its citizens,” she might have some explaining to do.
No doubt about it, the directive is a great strategy focused on strengthening democratic institutions, spurring economic growth, trade and investment, advancing peace and security, and promoting opportunity and development in Africa. It’s the right combination of the right ingredients. However, when the United States recently had the opportunity to demonstrate its commitment to these objectives in fragile regions around the world, including Africa, the Obama administration walked away. Instead of standing with other nations against the illicit and irresponsible arms trade that kills 1,500 people a day, it abruptly reversed course.
from The Great Debate UK:
On May 23, 2012, the chief negotiators of the five permanent members of the Security Council plus Germany will meet their Iranian counterparts in Baghdad to discuss Iran’s nuclear programme. This follows last April’s meeting in Istanbul, when negotiations were resumed after more than a year’s inaction. This summit will test whether Iran is serious and whether concrete results can be achieved.
from Photographers Blog:
By David Gray
When I was told about this assignment late last Friday in Beijing, the brief was simple – a group of young female Chinese college graduates training to be bodyguards; sounded interesting. Little did I know how interesting it would actually be.
Myself and a Reuters television crew were met in a shopping mall car park by two obviously former military-trained men wearing army fatigues and dark sunglasses. This for starters was an unusual scene in China; a foreigner being driven by what looked like army personnel as shoppers did ‘double-takes’ as we drove away. Thinking we would be driving to a distant, secret location I settled in for the long ride. Five minutes later, we pulled into a driveway. In front of us were soccer fields, complete with mini-goalposts. What were we doing here?
Eduard Goodman, Chief Privacy Officer for Identity Theft 911 has seen an increase in small businesses being targeted for cybercrime within the last five to seven years. Highly desirable data include customer information lists and personally identifiable information such as social security numbers, dates of birth and account numbers.
from Oddly Enough Blog:
Sometimes I just don't understand stuff, so maybe you can help me with this exercise in logic.
from Oddly Enough Blog:
Blog Guy, I'm worried sick! I heard there was some problem with protecting Paris Hilton. Is she okay?
They were hurt while protecting her?
No, they were fired FOR protecting her. Our story, Elite Polish cops sacked for protecting Paris Hilton, says three police commandos were told to resign or they would be fired for serving as Hilton's bodyguards during a recent appearance at a shopping mall opening.