Asustek turns sights to online smartphone sales in Southeast Asia

Taipei, June 29 (CNA) Taiwan's Asustek Computer Inc. is scheduled to open its official online store in Singapore on July 7 as the company's first step in expanding its online sales network of the low-cost ZenFone smartphone into Southeast Asian markets.

Further, the PC vendor will open its e-commerce website in Hong Kong in late August or early September, said Michael Huang, general manager of the Taiwan branch of Singapore-based e-commerce group Uitox Corp., which teamed up with Asustek in April this year to sell ZenFone models online in Taiwan.

By the end of this year, Asustek plans to launch its official online smartphone sales service with Uitox in more Southeast Asian markets, including Malaysia, Indonesia, Thailand, the Philippines and Vietnam, Huang told reporters last week when he attended an e-commerce forum in Taipei organized by Facebook Inc.

Asustek officials admit to being surprised by the better-than-expected results of its online smartphone sales, which accounted for more than 30 percent of Asustek's total smartphone sales volume in Taiwan in April, Huang said.

The Taiwanese computer maker is targeting a higher ratio of online smartphone sales in July for its home market, and has determined to make inroads into the fast-growing e-commerce market in Southeast Asia, in partnership with Uitox, he added.

The ZenFone models, priced as low as US$99, were unveiled in January this year as Asustek's answer to Chinese handset maker Xiaomi Corp.'s affordable Hongmi series

The ZenFone series has hit retailers' store shelves in Taiwan, China, Malaysia, Singapore, Indonesia, Vietnam and Thailand, and is scheduled to go on sale in India, Russia and Brazil in late second quarter, according to Asustek.

Asustek CEO Jerry Shen told a media briefing on June 2 at the Computex Taipei computer trade show that the company was working with its suppliers to double ZenFone shipments from 500,000 in May to one million units in June, and it will maintain that level until at least the fourth quarter of 2014.

Asustek forecast at an investor conference on May 7 that it would sell 5 million to 10 million smartphones this year to boost its 2014 revenues.

Source

(By Jeffrey Wu)

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Actor Shia LaBeouf charged with disorderly conduct, harassment

Shia LaBeouf is arraigned in Midtown Community Court in New York June 27, 2014.

Actor Shia LaBeouf, who starred in the "Transformer" movies and with Harrison Ford in "Indiana Jones and the Kingdom of the Crystal Skull" was arraigned on Friday on charges of disorderly conduct and harassment at a Broadway theater. LaBeouf, 28, did not enter a plea on five charges in the tiny, packed courtroom at Manhattan's Midtown Community Court. He was arrested on Thursday evening inside New York's Studio 54, where police said he disturbed a performance of the musical "Cabaret," used obscene language and became belligerent when security guards asked him to leave. He was charged with two counts of disorderly conduct, one count of trespass, one count of criminal trespass and harassment in the second degree. The hearing was adjourned until July 24 and LaBeouf was released on his own recognizance. All of the charges are misdemeanors or violations so the actor would face minimal or no jail time if convicted. As a disheveled-looking LaBeouf left the court alone wearing a bright blue T-shirt, ripped on one shoulder, and baggy pants, he made no comment to the mob of waiting photographers and reporters and walked briskly down the street. The actor's arrest is the latest bizarre behavior from the former Disney star. Earlier this year he walked out of a press conference and attended a red carpet premiere at the 64th Berlin International Film Festival to promote the movie "Nymphomaniac Volume 1" wearing a brown paper bad saying "I Am Not Famous Anymore." In February he also set up an unusual art installation in a Los Angeles called #IAMSORRY in which visitors were asked to select a small item from a group of objects on a table and then escorted into a room where a silent LaBeouf sat wearing the a similar brown bag on his head. He also apologized via Twitter to a graphic novelist whose work he was accused of plagiarizing in his short film "Howard Cantour.com." LaBeouf, who was born and raised in California, starred in the popular Disney Channel series Even Stevens in the late 1990s and won an a Daytime Emmy for his role. The actor also starred opposite Michael Douglas in 2010's "Wall Street: Money Never Sleeps" and as a Depression-era bootlegger in the 2012 film "Lawless."
-Reuters

TV executive Garth Ancier countersues sex abuse accuser

Garth Ancier is seen in this file photo taken in Pasadena, California July 29, 2009.

Hollywood television executive Garth Ancier filed a malicious-prosecution lawsuit on Friday against a former teenage actor who just two days earlier had dropped a lawsuit accusing him of sexual abuse in the late 1990s. Ancier, who has worked for Fox and NBC, sued Michael Egan and his attorneys Jeff Herman and Michael Gallagher, alleging abuse of process, documents filed in a Hawaii court show. Egan, 31, in April sued Ancier and three other Hollywood executives - "X-Men" director Bryan Singer, TV executive David Neuman and entertainment firm executive Gary Goddard - accusing them of sexually abusing him in Hawaii when he was an aspiring teenage actor. All four denied the claims and filed motions to dismiss. Egan filed voluntary dismissals of his lawsuits against Neuman and Ancier this month, but Singer and Goddard's cases are still pending. Ancier's lawsuit requests a jury trial to determine the charges and damages caused to his reputation and business from Egan's claims. It asserts that neither he nor Egan was in Hawaii at the time of the alleged abuses. In a statement on Friday, Herman said "Mike Egan maintains that he was sexually abused by Garth Ancier," but did not say why his client had dropped the suit against Ancier. He added that Egan had been examined by a psychologist and passed a polygraph test supporting his allegations. "This is nothing more than an attempt to silence victims. I will not be bullied and I will continue to fight for victims of sexual abuse even when it happens in Hollywood," said Herman, who hosted highly publicized news conferences in Los Angeles after filing the initial lawsuits in April.

U.S. soul singer Bobby Womack dies at age 70: publicist

Bobby Womack performs at the Rock and Roll Hall of Fame 2009 induction ceremonies in Cleveland, Ohio April 4, 2009.

U.S. soul singer and songwriter Bobby Womack has died, his publicist said on Friday. He was 70.
The cause of his death was not yet known, according to his publicist, Sonya Kolowrat at XL Recordings.
Womack, who was inducted into the Rock and Roll Hall of Fame in 2009, started performing gospel music with his brothers in the 1950s. He became a major figure in the rhythm and blues genre in a career that lasted seven decades.
As the lead singer of The Valentinos, the band he formed with his brothers in the 1960s, Womack scored a hit with "Lookin' For A Love." After the band broke up, Womack played guitar and worked with popular artists such as Aretha Franklin, Dusty Springfield and Ray Charles.
Womack, a prolific songwriter, composed songs across the rock and soul genres. His hits included "It's All Over Now," recorded by the Rolling Stones in 1964, and "Trust Me" for Janis Joplin, which was released after she died.
His solo singing career produced a string of hits, including 1972's "That's The Way I Feel About 'Cha" and "Woman's Gotta Have It."
Womack had struggled with health issues in recent years, including diabetes, prostate cancer, heart trouble, colon cancer and pneumonia. Last year, he said he was beginning to show early symptoms of Alzheimer's disease.

Pharrell, Minaj lead BET award winners, Richie honored

Pharrell Williams accepts the award for best male R&B/pop artist during the 2014 BET Awards in Los Angeles, California June 29, 2014.

R&B star Pharrell, rapper Nicki Minaj and newcomer August Alsina led the winners at the Black Entertainment Television (BET) awards on Sunday, which also honored veteran soul singer Lionel Richie. Pharrell kicked off the show with "Come Get It Bae" and won two awards, including best male R&B/pop artist. Beyonce was named best female R&B/pop singer, and closed the show with a sultry performance of "Partition" with husband Jay Z. The couple also won best collaboration for "Drunk In Love." Richie, 65, received the lifetime achievement award for his prolific career as part of Motown group The Commodores and as a solo artist. "Soul is a feeling, not a color. Talent is a god given gift and not a category, and out of the box is the magical place where true talent goes to thrive and breathe," Richie said as he accepted the award. John Legend, Ledisi and Yolanda performed Richie's classic love songs "Hello", "Still" and The Commodores' "Brick House" and "Jesus is Love". Richie sang "Easy" and "All Night Long". The BET awards, held in Los Angeles, celebrates black musicians, actors and athletes. It is hosted by cable TV network Black Entertainment Television, part of Viacom Inc., and the show was preceded by violence at unofficial parties ahead of the show in which one person was killed. New Orleans singer Alsina was named best new artist and Lil Wayne's rap collective Young Money scored best group. Drake won best male hip hop artist, but was not available to collect his award. Minaj was named best female hip hop artist and threw a little dig at other rappers by saying: "When you hear Nicki Minaj spit, Nicki Minaj wrote it." Comedian Chris Rock hosted the show, throwing jokes and jibes and handing out chicken and waffles to the audience. The almost four-hour ceremony toplined high-profile performances from some of the music world's biggest names. Usher referenced his 20-year career with a medley of his hits, Minaj performed "Pills N' Potions" on a stage with giant psychedelic mushrooms and R&B star Chris Brown joined Lil Wayne to perform "Loyal". Australian newcomer Iggy Azalea joined rapper T.I. to perform "No Mediocre" and her hit single "Fancy". The show also served up 1990s nostalgia with R&B groups Troop, Color Me Badd and Silk singing a medley of classic hits. Oscar-winning historical drama "12 Years A Slave" swept the film categories with Oscar-winning newcomer Lupita Nyong'o named best actress and Chiwetel Ejiofor named best actor. Neither were on hand to accept their awards. Civil rights activist Myrlie Evers-Williams accepted the humanitarian award commemorating the 50th anniversary of the Civil Rights Act signed into law in 1964. Sportswoman and sportsman of the year went to tennis star Serena Williams and basketball player Kevin Durant respectively.

'Designing Women' actor Meshach Taylor dead at 67: reports

U.S. actor Meshach Taylor, best known for his role as the affable assistant on the hit television show "Designing Women," has died at age 67, his agent said on Sunday. Taylor died on Saturday at his home near Los Angeles after an 18-month battle with colorectal cancer that had spread to his liver, agent Dede Binder told Reuters. "He fought valiantly and died surrounded by his loving family," she said. On Friday, Taylor's family posted on his Facebook page that he had begun to slip away. "It is with love and gratitude that we sorrowfully announce that our darling, amazingly brilliant and dynamic Meshach, the incredible father, husband, son and friend has begun his grand transition," the statement said. Taylor's portrayal of Anthony Bouvier on the sitcom "Designing Women," which ran from 1986 to 1993 and starred Annie Potts and Delta Burke, earned him rave reviews for his demeanor and comic timing as he sparred with four Southern interior decorators. Taylor also starred in the 1987 movie "Mannequin" and appeared in other television shows, including "Dave's World," "The Incredible Hulk" and "ALF." His survivors include his wife of 30 years, four children and his 100-year-old mother, Binder said.
-Reuters

'Legal highs' off the bill at this year's Glastonbury Festival

Festival goers watch Metallica perform on the Pyramid stage at Worthy Farm in Somerset, during the Glastonbury Festival June 28, 2014. Picture taken June 28.

Revellers enjoyed plenty of mood enhancement along with the music at the Glastonbury Festival, but this year any euphoria was less likely to be fueled by so-called "legal highs" after organizers took a stand against them. Glastonbury, which attracts more than 135,000 people, joined with other festivals earlier this year to ban the drugs, which mimic the effect of illegal drugs like Ecstasy, LSD and cannabis but are legal and have in the past been sold openly at stalls. Britain's Association of Independent Festivals coordinated the campaign under the banner: "Don't be in the Dark About Legal Highs". England-based consultant psychiatrist Ian Rodin, who is part of the medical team at Glastonbury, applauded the effort to highlight the risks of the drugs. "The problem with legal highs is people had assumed that if they were harmful they would be illegal, so people haven't exercised the same caution as they would with an illegal drug," he said. Also known as designer drugs, legal highs are flooding global markets, the United Nations Office on Drugs and Crime said last month. New psychoactive substances (NPS), aimed at the same market as drugs like ecstasy, are proliferating, it said, with 348 types reported globally in over 90 countries at the end of 2013. Deaths from the drugs, which can be sold freely as long as they are labeled "not suitable for human consumption", jumped from 10 in 2009 to at least 68 in 2012, according to Britain's National Programme on Substance Abuse Deaths. The drugs are being created faster than authorities can keep up with them. "The only reason they aren't illegal is because it's impossible for the law to keep up with it," Rodin said. The government said the designer drug AMT, which acts in a similar way to LSD, should be banned along with other deadly substances in a group of chemicals known as tryptamines, including a drug called 5-MeO-DALT, know as "rock star" or "green beans". AMT led to the death of a teenager in Southampton, southern England, last year. Festival goer Jamie, aged 21, from North Wales, said he had seen the effects that legal highs could have. "People think because it's legal, it's as safe as buying your tea-bags," he said. "But there's always a risk with everything you take."
-Reuters

'Transformers' turns into box office behemoth with $100 million opening

Actor Mark Wahlberg and wife Rhea Durham arrive for the premiere of the movie 'Transformers: Age of Extinction' in New York June 25, 2014.

"Transformers: Age of Extinction," the fourth in the series of films about form-changing Autobot robots that save the planet, powered up with $100 million in box office sales, jump-starting a sleepy summer with the year's biggest opening weekend. "22 Jump Street," starring Channing Tatum and Jonah Hill, was second with $15.4 million in its third week in theaters, according to studio estimates. Animated film "How to Train Your Dragon 2" took the No. 3 spot with sales of $13.1 million for the Friday through Sunday period at U.S. and Canadian theaters. "Transformers: Age of Extinction" stars Mark Wahlberg in his first outing taking on the evil Dinobots. The series' three previous installments, starring Shia LeBeouf, generated nearly $2.7 billion in worldwide sales, according to Box Office Mojo. "It's just a spectacular result," said Don Harris, president of domestic theatrical distribution for Paramount. The film took in more than $200 million overseas, an indication of "what a beloved franchise this is worldwide," Harris added, crediting director Michael Bay who helmed all four installments. "Transformers" added another $10.7 million on domestic IMAX screens and $16.6 million internationally. Made for more than $200 million, the film pits Optimus Prime, Bumblebee and other Autobots against new villains. It met industry projections for its opening weekend. The nearly three-hour movie garnered mostly poor reviews, with only 17 percent of 121 critics giving it a "fresh" rating, according to the site Rotten Tomatoes, but ticket buyers gave the film an A- rating according to polling service CinemaScore. Prior to the opening of "Transformers," summer ticket sales had lagged last year by 15 percent, according to the box office tracking site Rentrak, when blockbusters such as "Iron Man 3," "Monsters University," and "Fast & Furious 6" drove ticket sales. Last weekend's box office leader "Think Like a Man Too," a comedy starring Kevin Hart based on TV personality Steve Harvey's book "Act Like a Lady, Think Like a Man," was fourth with $10.4 million. "Maleficent," Walt Disney Co's revision of its 1959 movie "Sleeping Beauty" starring Angelina Jolie as a spell-casting evil fairy, rounded out the top five with $8.2 million and has totaled more than $200 million since opening on May 30. "Transformers: Age of Extinction" was distributed by Paramount, a unit of Viacom Inc. Sony Corp released "22 Jump Street" and "Think Like a Man Too."

Britain's Ed Sheeran charts at No.1, breaks 2014 album sales record

Musician Ed Sheeran arrives on the red carpet at the MuchMusic Video Awards (MMVA) in Toronto, June 15, 2014.

Singer/songwriter Ed Sheeran entered the British charts at number one on Sunday after his new release "X" became the fastest-selling album of 2014, the Official Charts Company said. Sheeran's second full-length album features the number one single "Sing" which topped the charts earlier this month. The album sold 182,000 copies since its release last Sunday, beating the previous record set by Coldplay's "Ghost Stories" by 14,000 copies. Sam Smith's "In The Lonely Hour" rose one place to second in the album chart, while last week's number one "Ultraviolence" by Lana Del Ray dropped to third. "Ghost Stories" and "Caustic Love" by Paolo Nutini completed the top five. In the singles chart, new entry "Gecko (Overdrive)" by Oliver Heldens and Becky Hill took the top spot from Ella Henderson who dropped to second with "Ghost". Ed Sheeran held on to third place with "Sing" while another new entry, "One More Day (Stay With Me)" by Example, charted in fourth.

America Movil's offer for Telekom Austria goes unconditional

A Telekom Austria phone booth is seen in Vienna Vienna May 8, 2014.

A pact between Telekom Austria's two biggest shareholders has gained the necessary regulatory approvals, meaning that America Movil's offer for the outstanding shares is now unconditional. Telekom Austria said on Monday that America Movil's $2 billion offer for the remaining shares was now mandatory after its shareholder agreement with the state holding company OIAG had come into force, giving Carlos Slim's America Movil control of the company. The details of the 7.15 euros-per-share offer valid until July 10 did not change, it said in a statement. America Movil, which holds 27 percent of Telekom Austria, struck a deal in April with the Austrian government, which holds 28 percent, to combine their stakes in a syndicate agreement that gives America Movil operational control. The Latin American telecoms giant launched its offer for the remaining shares in Telekom Austria in May. The deal was subject to approval by communications and financial regulators in Austria as well as telecoms watchdogs in the seven other countries in which Telekom Austria operates. "The conditions precedent as set forth in ... the offer memorandum have been fulfilled," Telekom Austria said. "The offer is thus being converted into a mandatory offer as of 30 June 2014. This mandatory offer does not have any conditions precedent."

Hon Hai buys a stake in SK C&C; shares hit multi-year highs

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in Tucheng, New Taipei city, December 24, 2013.

Hon Hai Precision, the world's biggest electronics component maker, said on Monday it had bought a 4.9 percent stake in South Korean IT services firm SK C&C for 381 billion won ($376.59 million). The move marks Hon Hai's second merger in less than two months as part of a broader effort to diversify away from the contract manufacturing business. Hon Hai, the major supplier of iPhones and iPads, paid 155,500 won per share for the stake, which was for "long-term investment", according to a company statement. It did not elaborate. SK C&C said in a separate regulatory filing that Chey Tae-won, the chairman of SK Holdings and biggest shareholder of SK C&C, was the seller. This knocks down Chey's stake from 38 percent to 33.1 percent in SK C&C, through which he controls SK Holdings and other units including the world's second-biggest chipmaker, SK Hynix Inc. "Hon Hai is considering expanding its business portfolio into information communication technology-centered services, and the fact that they chose SK C&C as their partner is positive," an SK Group spokeswoman said. She declined to comment on Chey's plans for the proceeds as it was a personal matter. Hon Hai's parent company, Foxconn Technology Group, said late in May it would buy a stake in Taiwanese mobile telecoms operator Asia Pacific Telecom for T$11.6 billion ($390 million) in a deal that would expand its presence in Taiwan's fledgling 4G telecoms market. The news helped send Hon Hai stocks up 1.4 percent to T$100 about one hour into Taipei trading, a multi-year highest intraday level. The main index jumped 0.8 percent. Shares in SK C&C rose as much as 4.8 percent after the filing, beating a 0.4 percent rise in the wider market.
-Reuters

Sony confident TV business will swing to profit this year: executive

A shopper (L) looks at Sony Corp's Bravia television sets screening a soccer match at an electronics retail store in Tokyo June 10, 2014.

Sony Corp (6758.T) is confident its TV division will move into the black this financial year after a decade in the red, even if it falls short of its volume sales target, the head of the newly independent division said on Monday. Masashi Imamura told a media round table that the TV business, which will become a separate subsidiary of Sony Corp on July 1, had reduced fixed costs during the last financial year, and profitability was now in sight. He said Sony this year would be able to absorb the impact of any fluctuations in emerging market currencies, a factor he blamed for the unit's failure to make a profit last year. Sony has forecast an 18.5 percent rise in TV sales to 16 million units this year from 13.5 million units a year ago, an increase that analysts said was well above the industry's average growth forecasts. Imamura said the sales target was achievable, but added that the TV business would still turn a profit even if sales fell short of this goal. Sony's TV division will be split off from the parent company on Tuesday, a move aimed at boosting transparency and accountability in a bid to achieve and maintain profitability. Sony Chief Executive Kazuo Hirai said at a corporate strategy meeting last month that the company had not ruled out an equity tie-up for the TV business, which is to be known as Sony Visual Products Inc, although nothing had been decided on the matter. Sony's TV business has seen relatively rapid turnover at the top over the past decade with six different chiefs, although Imamura has had the longest tenure, serving since August 2011. Sony's shares are down 8 percent so far this year, in line with the benchmark Nikkei average's .N225 7 percent drop. On Monday, they ended 0.2 percent higher at 1,682 yen, compared with the Nikkei's 0.4 percent rise. Imamura's remarks came after the market closed.
-Reuters

Google, Detroit diverge on road map for self-driving cars

A German-imported Audi S3 with a custom 'Android Auto' license plate is seen at the Google I/O developers conference in San Francisco in this June 26, 2014 file photo.

In 2012, a small team of Google Inc engineers and business staffers met with several of the world’s largest car makers, to discuss partnerships to build self-driving cars. In one meeting, both sides were enthusiastic about the futuristic technology, yet it soon became clear that they would not be working together. The Internet search company and the automaker disagreed on almost every point, from car capabilities and time needed to get it to market to extent of collaboration. It was as if the two were "talking a different language," recalls one person who was present. As Google expands beyond Web search and seeks a foothold in the automotive market, the company's eagerness has begun to reek of arrogance to some in Detroit, who see danger as well as promise in Silicon Valley. For now Google is moving forward on its own, building prototypes of fully autonomous vehicles that reject car makers' plans to gradually enhance existing cars with self-driving features. But Google's hopes of making autonomous cars a reality may eventually require working with Detroit, even the California company acknowledges. The alternative is to spend potentially billions of dollars to try to break into a century-old industry in which it has no experience. "The auto companies are watching Google closely and trying to understand what its intentions and ambitions are," said one person familiar with the auto industry, who asked to remain anonymous because of sensitive business relationships. "Automakers are not sure if Google is their friend or their enemy, but they have a sneaking suspicion that whatever Google’s going to do is going to cause upheaval in the industry." NO STEERING WHEEL Analysts estimate Google has invested tens of millions of dollars in an effort that's ultimately a side project. But car companies, all too familiar with the devastating financial and brand damage of recalls, would see any hiccups with the self-driving car as a threat to their main business. Nowhere is the disconnect more evident than in Google's latest prototype. Two people sit abreast in the tiny pod-shaped car, which has a flexible windshield for safety and is topped by a spinning cone that helps navigation. here The electric vehicles, unveiled in May, are limited to a maximum speed of 25 miles per hour and do away with several decades-long constants in motoring: the steering wheel, brake pedal and accelerator pedal. Google co-founder Sergey Brin has described self-driving cars as an on-demand service that consumers summon when needed. That would represent a seismic shift from a longstanding model based on individual ownership, an annual $375 billion U.S. market according to J.D. Power. Moreover, a study by consulting firm KPMG last year found that American consumers would trust brands like Google and Apple more for self-driving cars than they would automakers. General Motors’ global product development chief Mark Reuss recently said Google could become a “very serious competitive threat.” EVOLUTION VERSUS REVOLUTION Chris Urmson, director of Google's self-driving car group, would not discuss any negotiations with automakers but argues that self-driving cars will benefit car companies and consumers by expanding the number of car users. "I'm confident that when there is technology that makes sense, and when there is a business model that makes sense, that there will be interest and partnerships" with car makers, Urmson told Reuters in an interview. Self-driving cars can free people to do more of the things that earn Google money, such as Web search. But Urmson said Google is still figuring out how to make a profit from the technology. "I would imagine that this is probably different than just making more time for people to click on web sites," he said. Car makers such as GM, Mercedes and Volvo have been developing their own autonomous vehicle technology for years. But most favor an incremental approach to self-driving cars, in which features such as lane centering and parking assistance are gradually integrated into vehicles. Car makers are also hesitant to invest in new features until they are certain there is enough demand to pay for them. That approach and car makers' long development process are at odds with Google’s ambition to create a fully autonomous car in one swoop. The Internet company seemed to have little patience for Detroit, according to people involved in the 2012 talks with automakers. “There was a certain amount of arrogance on the Google side, in the sense of ‘We know what we’re doing, you just help us,’” said a second person, representing a major car maker, who was involved in discussions with Google. “We’d say, ‘Well you don’t really know that much. And we’re not going to put our name on a project like that because if something goes wrong, we have a lot more to lose.’” Another potential sticking point is maps developed by Google and essential for its robo-cars to operate, says Sven Strohband, a robotics expert who worked at Volkswagen until 2006 and was not involved in the discussions. That data, compiled by Google, can be extraordinarily detailed, down to the height of curbs or location of signs. “The question is who owns the data,” he said. "You need to have frequent map updates and your car can only go where you have really accurate map data." Without a driver to blame when accidents happen, the vehicles could bring greater liability for car makers. Google's assurances to one car maker that it would take responsibility for accidents due to its technology, and that the data collected by the cars makes it easy to pinpoint fault, was dismissed, according to the first person involved in the 2012 discussions. “I just couldn’t believe my ears and was like ‘Wow you live in a bubble,’” the person said. “Car makers never get to decide who is at fault. It’s the lawyers, the judge and the jury.” STARTING SMALL Whether Google opts to license its technology or seeks to build cars to its specifications, Google will need Detroit for the last mile, say industry experts and insiders. Google has made headway in less sensitive areas such as entertainment and navigation. In January, Google teamed up with GM, Audi, Honda and Hyundai to form the Open Automotive Alliance to incorporate its Android operating system, the software for mobile phones and tablets, into cars. And it has taken steps to understand regulations better, hiring Ron Medford, the National Highway Traffic Safety Administration’s former Deputy Director, in November 2012. “My view on this is both parties probably need each other,” said Strohband, now Chief Technology Officer at venture capital firm Khosla Ventures. A source at one automaker said the company talks to Google on a weekly basis about auto matters, though they have not partnered on self-driving cars. Some in the industry predict fully automated cars will be available as soon as 2020, though research firm IHS Automotive does not expect the cars to be widely available until 2035. For now, Google is starting small with 100 to 200 prototype cars. It wouldn't identify manufacturing partners, though industry reports pinpoint Michigan-based Roush Enterprises, which assembles small volumes of custom vehicles such as race cars. Roush declined comment. To build anything more than a couple thousand cars would likely require an automaker partner. Industry insiders point to critical systems such as steering and suspension, the intricacies of working with hundreds of suppliers and high-volume production at consistent levels of reliability as skills that cannot be learned overnight. While Tesla Motors offers an example of an outsider breaking into the business, the electric car maker has benefited from a hefty government loan and from having access to the shuttered GM-Toyota NUMMI car manufacturing plant in Fremont, California. The cost to launch a new car model, including costs of developing and tooling, is generally $1 billion to $1.5 billion. For a company starting from scratch, such as Google, that cost would likely be higher, say auto industry experts. Some industry observers have suggested that Google should pair up with Tesla, which is also developing self-driving technology and which shares Google's Silicon Valley mindset. With roughly $60 billion in cash, Google could also acquire a smaller auto company, some speculate, though they note that such a move would involve more ongoing costs, liabilities and cultural challenges then Google may be willing to accept. "Google is the 800-pound gorilla in the room and nobody wants to miss the boat," said Edwin Olson, assistant professor of computer science at the University of Michigan, who works with Ford on an automated vehicle project. "But at the same time I don’t think automakers want Google to be dictating terms if the time comes and Google is the only game in town."
-Reuters

Mass Hong Kong protest looms as democracy push gathers steam

Electoral assistants count ballots at a polling station after the last day of civil referendum held by the Occupy Central organisers in Hong Kong June 29, 2014.

Hong Kong is bracing for its largest protest in more than a decade after nearly 800,000 voted for full democracy in an unofficial referendum, a move likely to stoke anti-China sentiment in the former British colony. The annual July 1 rally, marking the day the territory returned to China in 1997, will focus on pressuring Beijing's Communist Party leaders for full electoral freedom, organizers said, and could draw the largest turnout since 2003, when half a million people demonstrated against proposed anti-subversion laws which were later scrapped. Several groups have indicated they will stage overnight vigils after the march in a possible prelude to a planned campaign to shut down the city's financial district. "We can see that Beijing is eroding the autonomy of Hong Kong, and we want to show we don't fear central government oppression," said Johnson Yeung, convenor of the Civil Human Rights Front, one of the organizers of the march. Some 792,000 people, or nearly ten percent of the city's seven million population, voted in the referendum urging Beijing to allow opposition democrats to run in a 2017 citywide election for a new leader. The vote was organized by Occupy Central, behind the financial district shut-down plan, and comes at a time when many Hong Kong residents fear civil liberties are being stripped away. Beijing has allowed Hong Kong to go ahead with a popular vote in 2017, the most far-reaching experiment in democracy in China since the Communist takeover in 1949, but senior Chinese officials have ruled out allowing the public to nominate candidates. Instead, Beijing says a small committee of largely pro-Beijing loyalists choose who gets on the ballot, effectively filtering out opposition candidates and consolidating the current standoff. Hong Kong returned to China with wide-ranging autonomy under the formula of "one country, two systems", allowing such protests to take place. But China bristles at open dissent. The stakes have grown markedly for Hong Kong and Chinese authorities over the past few weeks. What was once dismissed as a fringe pro-democracy campaign by radicals has now snowballed into a populist movement with real clout and legitimacy. SEEING RED OVER WHITE PAPER Organizers of the Tuesday march expect more than half a million people to spill on to the streets, partly as a retort to a controversial "white paper" from China's cabinet in early June - an official government paper stressing Beijing's complete control over Hong Kong. Two groups, Scholarism and the Hong Kong Federation of Students, say they will stage a sit-in after the July 1 march lasting until the following morning. Alex Chow, one of the leaders of the federation, said he expected thousands to take part, with some analysts warning there was a risk this could become a catalyst for blockading the city's central business district. In the referendum, 91 percent of voters said they wanted public nomination of candidates, while nine percent abstained. Some 88 percent said the city's Legislative Council should veto any proposal that wasn't in line with international standards. Benny Tai, a leader of Occupy Central, urged voters to come out and march, but ruled out taking action to blockade the central business district on that day, saying it "wouldn't be the right moment". A decision would be taken later, depending on the government response. While Chinese and Hong Kong officials have warned Occupy Central would damage the city's standing as a financial center, there appears to be a softening stance given the risks of provoking a greater backlash. "They've changed their tone," said Joseph Wong, a former senior government official and political commentator. "They're concerned about the high turnout and they don't want to be seen to be adding fuel to the fire," he added, noting recent comments from Hong Kong's number two official, Carrie Lam, who said the government would heed the poll's findings. Activists say it is a peaceful movement demanding a "genuine choice" for Hong Kong voters. Barrister Martin Lee, one of the founders of the main opposition Democratic Party, said a large turnout of marchers was key to putting pressure on Beijing. But some Hong Kong politicians do not see much room for compromise. "China has always been like that ... if you are tough, I'll try to be tougher," said Rita Fan, a senior Hong Kong delegate to China's parliament, the National People's Congress. "If you are reasonable, I'll try to be more reasonable. If you go ahead with all these things, then you can expect a rather strong response."
                                                                                                                                 -Reuters

Around 30 migrants found dead on boat near Sicily

As many as 30 migrants were found dead on a boat packed with people off the coast of Sicily, said Italy's navy which rescued thousands more trying to cross from North Africa over the weekend.
The dead are thought to have either drowned or suffocated on the overcrowded fishing vessel, the navy said.
The discovery on Sunday underlined the scale of the crisis in the waters of the southern Mediterranean, where hundreds have died making the perilous journey to Europe, and tens of thousands more have been plucked from rickety boats.
More than 5,000 people were rescued this weekend, adding to the 50,000 migrants who have reached Italy from North Africa so far this year, many fleeing war and forced conscription.
Italy has called on its European Union partners to do more to help manage the near daily arrivals which have boosted support for the country's anti-immigration opposition Northern League party.
At the current rate, the figures should soon pass the record of 62,000 people who arrived by sea in 2011, when numbers swelled amid the "Arab Spring" uprisings across North Africa and the Middle East.
An Italian ship, part of the navy's migrant rescue mission Mare Nostrum or "Our Sea", was due to arrive at the Sicilian port of Pozzallo later on Monday towing the fishing boat and carrying 566 survivors.
The navy said thousands of others rescued this weekend would arrive in other ports in southern Italy over Monday and Tuesday.
Italian Prime Minister Matteo Renzi said last week the EU should take responsibility for rescuing boat migrants by investing in regional border control agency Frontex.
Northern League leader Matteo Salvini attacked Renzi and Interior Minister Angelino Alfano in a Facebook post:
"Thirty more deaths on the consciences of those who defend 'Their Seas'. Stop the departures, help them at home, now! Renzi and Alfano have blood on their shirts, don't they?"     
                                                                                                                                     -Reuters

Police officer killed in blast near Egypt's presidential palace

An Egyptian police officer was killed and several others wounded in a small explosion near the presidential palace in Cairo's Heliopolis district on Monday, the Interior Ministry said. Security forces were defusing one makeshift bomb found at a street intersection near the presidential palace when a second device exploded, the ministry said in a statement. The blast came days after the militant group Ajnad Misr, or Soldiers of Egypt, said it had planted a series of bombs in the same area to target security forces. It aborted the mission due to concerns that civilians would be hurt but was unable to remove the bombs and released a statement urging caution. The group formally announced itself in January saying it would target the government after the army ousted elected President Mohamed Mursi of the Muslim Brotherhood last year. Eight people were hurt in a series of explosions last week on Cairo's metro, the first attacks in the capital since Abdel Fattah al-Sisi became president this month. Islamist militants have targeted police and soldiers with bomb attacks and shootings since Mursi's ousting. Thousands of Brotherhood supporters have been arrested, and hundreds more have been killed. The Brotherhood denies any link to the violence.
-Reuters

Boeing, Airbus enter bids for $1.38 billion South Korean refueling plane order: sources

Visitors walk past a miniature model of the Airbus A330 Multi Role Tanker Transport (MRTT) during the International Defence Exhibition and Conference (IDEX) at the Abu Dhabi National Exhibition Centre February 19, 2013.

Boeing and Airbus were among three bidders in South Korea's roughly 1.4 trillion won ($1.38 billion) program to buy four refueling tanker aircraft, two people briefed on the matter said on Monday. South Korea kicked off the acquisition process in March to increase the range of its airborne operations amid rising tensions in the region and with North Korea. The bids, due Monday, saw the Boeing 767-based KC-46 pitted against Airbus' A330 Multi Role Tanker Transport (MRTT) and Israel Aerospace Industries Ltd's [ISRAI.UL] entry of an overhauled B767-300ER, the people said. They declined to be identified as the matter remained confidential. South Korea expects to close the deal by end of this year. Boeing and Airbus are in a global competition to fill various requirements for refueling planes. Airbus' A330 MRTT has been selected by six countries including Australia, Saudi Arabia, United Arab Emirates and the United Kingdom, with the latest choice by Singapore for six planes in March, according to the company. In 2011, the U.S. Air Force chose Boeing's KC-46 to start replacing its fleet of ageing KC-135 tankers, and plans to spend $52 billion to develop and buy 179 of the refueling planes. Tanker aircrafts are used to refuel fighter jets and other warplanes during flight. South Korea expects the acquisition will boost its fighter jets' airborne operation time by more than an hour

Global bank profits hit $920 billion as Chinese lenders boom

A Bank of China branch is seen under construction in Guangzhou, Guangdong province, January 15, 2014.

China's top banks accounted for almost one-third of a record $920 billion of profits made by the world's top 1000 banks last year, showing their rise in power since the financial crisis, a survey showed on Monday. China's banks made $292 billion in aggregate pretax profit last year, or 32 percent of the industry's global earnings, according to The Banker magazine's annual rankings of the profits and capital strength of the world's biggest 1,000 banks. Last year's global profits were up 23 percent from the previous year to their highest ever level, led by profits of $55 billion at Industrial and Commercial Bank of China (ICBC) (601398.SS). China Construction Bank (601939.SS), Agriculture Bank of China (601288.SS) and Bank of China (601988.SS) filled the top four positions. Banks in the United States made aggregate profits of $183 billion, or 20 percent of the global tally, led by Wells Fargo's (WFC.N) earnings of $32 billion. Banks in the eurozone contributed just 3 percent to the global profit pool, down from 25 percent before the 2008 financial crisis, the study showed. Italian banks lost $35 billion in aggregate last year, the worst performance by any country. Banks in Japan made $64 billion of profit last year, or 7 percent of the global total, followed by banks in Canada, France and Australia ($39 billion in each country), Brazil ($26 billion) and Britain ($22 billion), The Banker said. The magazine said ICBC kept its position as the world's strongest bank, based on how much capital they hold - which reflects their ability to lend on a large scale and endure shocks. China Construction Bank jumped to second from fifth in the rankings of strength and was followed by JPMorgan (JPM.N), Bank of America (BAC.N) and HSBC (HSBA.L). ICBC, which took the top position last year for the first time, was one of four Chinese banks in the latest top 10. Wells Fargo has this year jumped to become the world's biggest bank by market value, after a surge in its share price on the back of sustained earnings growth. Its market value is $275 billion, about $75 billion more than ICBC. The Banker said African banks made the highest returns on capital last year of 24 percent - double the average in the rest of the world and six times the average return of 4 percent at European lenders.

(Reuters) - 

India's Modi eyes first labor overhaul in decades to create jobs

A labourer cuts an iron rod at the construction site of a flyover on the outskirts of the western Indian city of Ahmedabad June 24, 2014.

Prime Minister Narendra Modi has set in motion the first major revamp in decades of India's archaic labor laws, part of a plan to revive the flagging economy, boost manufacturing and create millions of jobs. Successive governments have agreed labor reform is critical to absorb 200 million Indians reaching working age over the next two decades, but fears of an ugly union-led backlash and partisan politics have prevented changes to free up labor markets. Now, with the benefit of a single party majority in the lower house of parliament for the first time in 30 years, laws that date back to just after the end of British rule are set for an overhaul. Officials at the labor ministry say this is a top priority in the government's first 100 days in office. India has a forest of labor laws, including anachronisms such as providing spittoons in the work place, and are so complex that most firms choose to stay small. In 2009, 84 percent of India's manufacturers employed fewer than 50 workers, compared to 25 percent in China, according to a study this year by consultancy firm McKinsey & Co. The World Bank said in a 2014 report that India has one of the most rigid labor markets in the world and "although the regulations are meant to enhance the welfare of workers, they often have the opposite effect by encouraging firms to stay small and thus circumvent labor laws". Business leaders hope Modi, who advocates smaller government and private enterprise, will be a liberalizer in the mould of Margaret Thatcher or Ronald Reagan. Perhaps the most important change, they say, is to rules making it hard to dismiss workers. First up, though, to win public support, his Bharatiya Janata Party (BJP) government is looking to make changes that benefit workers, three senior officials at the labor ministry said. Among the changes: making more workers eligible for minimum wages, increasing overtime hours and allowing women to do night shifts. "We are trying to provide a hassle free environment that helps both workers and industry," a senior labor ministry official involved in the deliberations said. "It is a priority for us." Next on the reform agenda will be the most sensitive issue of loosening strict hire and fire rules. Officials said they have begun preliminary talks with concerned groups about slowly implementing the changes. "There is a definite push ... you will see more measures," said another official at the ministry who is privy to the discussions within the government. REFORMS KEY TO MANUFACTURING JOBS India's 20-year streak of fast economic expansion is often derided as "jobless growth" since the service sector-led model has been capital rather than labor intensive. India does not produce reliable, regular jobless data, but long-term surveys by the statistics department show the country only created 5 million manufacturing jobs between 2004/5 and 2011/12. In the same period some 33 million people left farms looking for better paid work. The majority were absorbed into low productivity and irregular work on construction sites. Moreover, research suggests India needs 12 million new jobs every year to absorb the largest youth bulge the world has ever seen. It has fallen far behind that target. Companies complain that current laws requiring rarely granted government permission for layoffs make it impossible to respond to business downturns, and blame the laws for the country's relatively small manufacturing sector. Manufacturing contributes just 15 percent to India's nearly $2 trillion economy. New Delhi says it wants to lift that share to 25 percent within a decade to help create 100 million jobs. Comparatively, manufacturing accounted for 45 percent of China's GDP in 2012. "If business cycles are volatile, the ability to downsize and upsize should be freely available," said R. Shankar Raman, chief financial officer at Larsen & Toubro (LART.NS), one of India's biggest conglomerates. In what is seen as a test for Modi's labor reform agenda and is intended to inspire other states, Rajasthan this month proposed amendments to the federal law to allow firms in the northern state to lay off up to 300 workers without government permission. Currently, clearance is required to fire more than 100 workers and this is rarely granted. LABOR MILITANCY DECLINES Labor unions cutting across party affiliations have opposed the state government's move and have asked Modi to intervene. The BJP's own union has called a meeting of its officials early next month to chalk out a strategy to protest what it said was a lack of consultation over the shake up in Rajasthan. Since almost all the unions in India have political affiliations, their opposition to reforms has a risk of turning into a full-scale political agitation. But the risk that the reforms could also bring full-blown street protests similar to that seen in Thatcher's Britain are unlikely. Labor militancy has declined in India, although sporadic violent protests like one at a Maruti Suzuki <(MRTI.NS) factory in 2012 which resulted in a death of a company official are enough to make policymakers wary on the pace of reform. The labor ministry has asked for public comments by early July on the changes it plans to the Minimum Wages Act, which sets minimum wages for skilled and unskilled labours, and the Factory Act, which governs health and safety. The proposed changes would standardize minimum wages nationally while increasing the frequency of salary revisions based on consumer prices. Although potentially inflationary, the move could bring millions of workers into the formal economy. The ministry also wants to extend the amount of overtime workers can clock and scrap a 1948 rule that prohibits women working at night in factories, suggestions that have been welcomed by both labor groups and employers.
-Reuters

Japan industrial output rises, signals economic recovery

Workers control a crane to move a steel coil inside a factory in Tokyo May 29, 2014.

Japan's factory output rose in May after companies cut production in April to offset the impact of a national sales tax hike, underscoring views the economy will absorb the increase largely unscathed. The 0.5 percent month-on-month rise compared with the median estimate of a 0.9 percent increase in a Reuters poll of economists, and followed a 2.8 percent drop in April, data from the Ministry of Economy, Trade and Industry showed On Monday. The data is likely to support a view that the economy will rebound in the summer from the April 1 sales tax rise and spending slump in the current quarter. That rebound could further dampen expectations the Bank of Japan will ease policy again this year, as it is likely to support the bank's optimistic view of an economy is on track to resume moderate recovery and meet its 2 percent inflation target. Manufacturers surveyed by the ministry expect output to fall 0.7 percent in June but grow 1.5 percent in July, the data showed on Monday. Market reaction was muted. "Output is recovering. But it is still in the stage of adjustments given falling shipments and rising inventory," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo. The ministry maintained its assessment of factory output, saying it is in a flat trend. The government raised the national sales tax to 8 percent from 5 percent on April 1 to pay for rising welfare costs, which has chilled private spending. Manufacturers have reduced production after the tax hike to avoid piling up inventories. Analysts expect the economy to contract in the second quarter due to the tax hike, with a Reuters poll conducted in June projecting a 1.2 percent quarterly drop. However, a bigger-than-expected decline in household spending and a drop in exports in May mean that the contraction could be more pronounced and subsequent rebound may be delayed. The BOJ has signalled that it sees no immediate need to expand its massive stimulus programme deployed in April last year, stressing that the pullback in demand after the tax hike will be temporary.
- Reuters

Following long ban, U.S. could dominate global light oil supply

An oil refinery is seen in Louisiana in a file photo.

After decades of isolation, the United States is set to become a major player in the global trade of ultra light oil as recent government export approvals attract interest across the world. Following rulings disclosed this week, U.S. companies can now export the light, gaseous petroleum known as condensate after a forty-year ban, giving them access to needy markets in Latin America and Asia and potentially threatening the dominance of other established producers in the Middle East and Africa. Companies are ready to ship condensate from some of the United States' massive oil and gas fields within weeks. By the end of the year, as much as 300,000 barrels could be exported each day, according to analysts at Citi in New York, a timely event as Asian countries increase capacity to import and exporters elsewhere face headwinds. "It could have an enormous impact," said Al Troner a condensate expert and president of Asia Pacific Energy Consulting. "It could happen within the next two weeks." Up to one million barrels of condensate is produced each day in the United States, all of which can be exported after some basic refining to reduce volatility, known as stabilizing, according to the U.S. ruling. That is double the amount exported by Qatar, the world's leading condensate producer. The amount exported and where it goes depends on the kind of condensate that is produced and whether it is the right grade to feed petrochemical plants in China or Japan or to dilute heavy crude produced in Latin America. Enterprise Products Partners and Pioneer Natural Resources this week both said that they have received private go-ahead from the Commerce Department to export condensate. Enterprise said it is ready to start exporting anytime. Exports of condensate, a major feedstock for the petrochemical industry, will provide the first outlet for the vast amounts of oil and gas now produced in the United States. It will also give an inkling of the impact that a U.S. drilling boom could finally have abroad if other types of crude are approved for export. Buyers are already interested, not just in nearby Latin America - the closest destination for U.S. condensate - but further afield in India and east Asia, traders and sources said. In Latin America, companies could use condensate as a substitute for naphtha to lighten local heavy crude. Venezuela's state-run oil producer PDVSA and firms operating in Colombia including Ecopetrol and Pacific Rubiales, some of which already buy from West Africa, are "lined up waiting to buy light crudes and condensates if the price is right" said one trader working in crude purchases, speaking on the condition of anonymity. In India, Essar Oil's chief executive L K Gupta said "we will look at buying condensate from the United States if the pricing is right. We do buy condensate and if a new source is opening up that is good for us". It is unclear what the cost of U.S. condensates would be, given that the price depends on the density and where it is produced. Some condensate from the Eagle Ford play in Texas does appear to be cheaper than some grades currently exported from Australia's North West Shelf, according to traders and Reuters data. "According to an internal analysis at our company, the U.S. condensate based upon (U.S.) WTI pricing appears to have cost competitiveness compared with those from the Middle East based upon Dubai crude," said one Seoul-based refining source, adding that competitive U.S. exports could help bring down global prices. LENGTH TO TIGHTNESS The Middle East dominates supply of condensate. Qatar and Iran export 760,000 barrels per day combined, about half daily global supply, according to a presentation in November by analysts at Facts Global Energy. Australia and Africa make up most of the rest. The majority of supply heads to Asia, where importers like China, Japan and South Korea have build processing plants known as splitters that can turn condensate into naphtha and other oil-related products. In Asia Pacific, splitters can process up to 900,000 barrels per day of condensate, according to Facts. But as demand rises, production from existing exporters is faltering. In Australia, where condensate is a by-product of liquefied natural gas production, exports are already declining in part because new gas produced is "drier" than before. In Qatar, domestic demand is set to slow exports. Iranian output has been hampered by sanctions. "The condensate market East may move from length to tightness," the Facts report said. It remains to be seen if the United States can fill the gap, and it is expected to take time to determine whether U.S. condensate is compatible with Asian importers' needs. Some said that no moves have been made to export condensate to Asia from the United States. Sampling could take months, others said. But with demand on the rise, the United States could offer unexpected respite. "What we hope is this (U.S.) export will help pull down prices of shipments from the Middle East as overall supplies in the global market increase," the Seoul-based refinery source said.
REUTERS

Jobs, cars seen cementing U.S. spring rebound

People fill out paperwork before attending an orientation class at the Manhattan branch of the New York State Department of Labor March 4, 2009 file photo.

 The United States can firmly consign its weather-beaten start to the year to history this week with June vehicle sales and jobs data expected to show a strong end to the second quarter. The U.S. economy contracted at a 2.9 percent annual rate, the sharpest decline in five years, in the Jan-March period, figures showed last Wednesday. An exceptionally bitter winter, the expiration of long-term unemployment benefits and a marked slowdown in restocking by businesses combined to drag down the world's largest economy, but these factors should have faded by April. Monthly jobs data, arguably the most important gauge for both the Federal Reserve and the American people, is expected to show U.S. firms are continuing to hire at a solid pace as a virtuous circle of economic activity and growth takes hold. U.S. employment already returned to its pre-recession peak in May, with non-farm job gains of 217,000. Economists polled by Reuters on average expect that to dip by a modest 4,000 to 213,000 in June. That would be a fifth straight month of job gains above 200,000, a run unmatched since the Sept 1999-Jan 2000 period, just before the dot-com bubble burst. "If we settle at a 215-220 (thousand) pace that would be consistent with a transition to a faster pace of growth of around 3 percent," said Lewis Alexander, U.S. chief economist at Nomura. Alexander said he recognized risks, including rising oil prices from the conflict in Iraq and Iraqi conflict and a possible messy end to China's housing boom. "An impact is possible, but I don't think all that likely. It would have to go very badly to materially impact the U.S. outlook," he said. The jobs figures on Thursday, also set to feature a steady 6.3 percent unemployment rate, will conclude a shortened week for the United States, which breaks for Independence Day on Friday. The week will also feature auto sales, seen pulling back slightly in June after surging in May by its strongest pace since February 2007. Meanwhile forecasts for the influential ISM (Institute for Supply Management) manufacturing and services reports point to a further acceleration of growth, with respectively a fifth and fourth consecutive rise in the monthly indices. James Knightley, senior economist at ING, believes the data will support his view that growth could top an annualized 5 percent in the April-June period due to a rise of inventories, a rebound of investment and a boost from trade. Less optimistic economists suggest the jobs, car and ISM reports should at least provide a counterbalance to muted consumer spending in May, reported last week. Such spending rose by just 0.2 percent in the month, half the level forecast, and following a flat reading in April, prompting some economists to cut their estimates for second-quarter growth to as low as a 2.2 percent pace from as high as 4.0 percent before. NO ECB FIREWORKS Across the Atlantic, the European Central Bank meets again, a month on from its unleashing of a far-reaching package of measures to keep the euro zone economy from slipping into a Japan-style deflation. The ECB cut interest rates to record lows - the deposit rate to below zero - and strengthened its pledge to keep them low well into the future by extending banks' unlimited access to central bank money to the end of 2016. It also plans to hand out more ultra-cheap long-term loans to encourage banks to lend more freely to euro zone companies, but the details for such operations still need to be worked out. Overall, 27 of 53 ECB watchers polled by Reuters said the central bank has probably done enough for now. Many among those who disagree say a quantitative easing program is required for any lasting impact on the strong euro currency and inflation. This Thursday's meeting is expected to be uneventful, followed by what could be one of the shortest news conferences in ECB history. Preceding its meeting, euro zone inflation is forecast to hold steady at 0.5 percent after its unexpected fall to that level in May all but sealed the case for the ECB to act. If confirmed, June would be the ninth consecutive month of inflation in the ECB's "danger zone" of below 1 percent. STABILITY, MODEST GROWTH Outside the United States, purchasing managers' indices(PMIs) steady for manufacturing on Tuesday and services on Thursday are expected to show a picture of growth or at least stability despite geopolitical tensions around Ukraine and Iraq. Figures for the euro zone are seen unchanged for June, while those for Britain are seen pulling back from very high levels of May, when hiring in its dominant service sector matched a 17-year high. In China, more comprehensive PMIs for manufacturing and services are expected to confirm the world's second largest economy is stabilizing thanks to Beijing's measures to shore up growth. Factory activity expanded in June for the first time in six months as new orders surged, according to the HSBC/Markit flash PMI released last Monday.
(Reuters) -

BlackRock ETFs near $1 trillion as it loses market share to Vanguard

The BlackRock logo is seen outside of its offices in New York January 18, 2012.

 - Even as BlackRock Inc (BLK.N) is set to amass $1 trillion in exchange-traded fund assets in its iShares business, U.S. retail investors increasingly prefer to send their money to low-cost leader Vanguard Group, highlighting a weak spot for the world's biggest money manager. With $998 billion in ETF money, BlackRock has more than the next contenders, Vanguard and State Street Corp (STT.N), combined. But the company has struggled to compete with Vanguard, known for its investor-friendly low-cost investing, for Mom and Pop's nest eggs. Retail investors now account for more than half of the $1.8 trillion in ETF assets under management in the U.S, according to consulting firm PwC. So far this year, Vanguard has pulled in about $30.3 billion in net new ETF money in the U.S., or about 43 percent of the market, while iShares is second with $24.7 billion, or about 35 percent. That reflects a trend that's been going on for years: at the end of 2009, BlackRock had 47.7 percent of total U.S. ETF assets under management, compared with 11.7 percent for Vanguard. By the end of May, BlackRock's share was down to 38.9 percent, compared with 20.6 percent for Vanguard, according to Lipper Inc, a unit of Thomson Reuters. "Our aspiration is to be number one in flows, and we can't get there without being higher in the retail market place," said Mark Wiedman, the BlackRock executive who heads the iShares business globally, speaking at the company's annual meeting in New York in June. "We are starting to change our voice for that audience and I would say historically we frankly haven't done that good a job." The market share loss comes in spite of BlackRock's two-year effort to win retail investors. BlackRock introduced a line of low-cost "buy and hold" investor-aimed ETFs in 2012, and since then has been cutting prices on its ETFs, revamping its sales team, and pushing a new branding campaign. The firm has cut prices on 12 funds since 2012, ranging from its S&P Total U.S. Stock Market ETF then to its high-dividend ETF in June 2014. BlackRock says its flows have improved since it started its new retail effort. One of the most significant price reductions was in its iShares High Dividend ETF. The cost to investors for that fund dropped to 0.12 percent a year from 0.4 percent, a move that would cost BlackRock $11.2 million annually, based on the $4 billion in the fund. Last quarter, iShares ETFs generated some $765 million in base fees revenue. "Every basis point that you cut a fee impacts revenues, but we don't really look at that – we look at the profitability of our ETF business over the long term," BlackRock executive Frank Porcelli, head of U.S. Wealth Advisory Business, said at Reuters' Global Wealth Management Summit in June. Asked about how fee cuts would affect BlackRock's profits, he said it was "not relevant." BIGGEST MANAGER With $4.4 trillion in total assets among its various product lines, BlackRock remains the world's largest asset manager and is unlikely to be eclipsed by Vanguard anytime soon. BlackRock has nearly tripled the size of the iShares business since it bought it from Barclay's five years ago, largely by selling to big institutions, such as the Arizona State Retirement System, which plunked down $300 million to seed three iShares funds last year. It has also won institutional and retail investors abroad; BlackRock has a strong presence in Europe, Asia, Canada and Latin America. Total BlackRock ETF assets outside of the U.S. are about $280.5 billion, about 36 percent of the $700 billion total market. Analysts say that iShares' size and scale makes the effect of fee cuts in the near-term fairly minimal on the overall business, but that a prolonged price war could hurt the firm. "It's a tough spot to be in," said Edward Jones analyst Jim Shanahan. "There is some growth potential there, but it is slow to materialize and it has to be powerful enough to offset the addition of a lot of these products with fees less than the current weighted average fee rate." Vanguard, which unlike BlackRock isn't publicly traded, offers significantly cheaper funds. The average expense ratio of a Vanguard ETF is 0.14 percent, or $14 for every $10,000 invested, compared with the industry average of 0.58 percent. BlackRock's average expense ratio is 0.32 percent. "When talking about large, commoditized ETFs, low cost makes a big difference, and Vanguard is a little bit more competitive," said Gabelli & Co analyst Macrae Sykes. "Investors recognize Vanguard as the low-cost leader – whether for index funds, for active funds, for bond funds, for money market funds, or for ETFs," said Vanguard spokesman David Hoffman. "We like to say that we've been lowering the cost and complexity of investing for 38 years. We are also increasingly being recognized for our commitment to providing high-quality products that can play an enduring role in a portfolio." MARKETING TO MOM AND POP The iShares team has been working on building its brand. An "iShares by BlackRock" advertisement now shares the same spot on the New York Times home page as a Vanguard ad that bears its trademark ship. The two alternate in the advertising space next to the markets section. "Brand is important, and we recognize that," BlackRock executive Raj Seshadri, head of U.S. Wealth Advisory iShares and former global chief marketing officer, said in an interview. To succeed better with retail investors, iShares will have to win over advisers such as Carl Amos Johnson, a fee-only adviser and owner of Grove Street Fiduciary in Peterborough, New Hampshire. He estimates that roughly 90 percent of the ETFs in his clients' portfolios are Vanguard funds. "They (Vanguard) have captured the low-cost retail index mind, and even the most naive investor knows that," Johnson said. "To me the brand is not the key, but in the mind of a client, it is a big difference."
(Reuters)

Pistorius had no mental disorder at time of shooting: psychiatrists

South African Olympic and Paralympic athlete Oscar Pistorius talks to his defence lawyer Barry Roux (L) during his murder trial in the North Gauteng High Court in Pretoria June 30, 2014.

 - Oscar Pistorius, the South African track star on trial for murder for shooting his girlfriend, was not suffering from a mental condition that would have impaired his ability to distinguish between right and wrong at the time she was killed, a psychiatric report said on Monday. Pistorius, an Olympic and Paralympic sprinter, has admitted to shooting dead his model girlfriend, Reeva Steenkamp, but maintains he mistook her for an intruder hiding in his toilet in an upmarket Pretoria suburb. The trial, which began in March, took a month-long break to allow the 27-year-old to undergo a mental evaluation at Pretoria's Weskoppies hospital after a forensic psychologist brought by the defense testified that Pistorius had an anxiety disorder. Judge Thokozile Masipa said it was important to find out whether or not the condition affected his criminal responsibility. "At the time of the alleged offences, the accused did not suffer from a mental disorder or mental defect that affected his ability to distinguish between the rightful or wrongful nature of his deeds," Prosecutor Gerrie Nel read from a report submitted to the court. Both Nel and defense lawyer Barry Roux accepted the findings of a panel of psychiatrists and psychologists after 30 days of evaluation. During the trial, prosecutors have tried to paint a picture of a self-obsessed Pistorius who knowingly killed his law graduate girlfriend as she cowered behind a locked bathroom door. Pistorius could face a life sentence if found guilty of the shooting on Valentine's Day last year. Pistorius competed against able-bodied sprinters on carbon-fiber prosthetics, becoming one of the most recognized names in athletics. Besides a clutch of Paralympic medals, he reached the semi-finals of the 400m at the London 2012 Olympics.
(Reuters)

North Korea says to try two detained U.S. citizens

Jeffrey Fowle is shown in this City of Moraine handout photo released on June 9, 2014.

North Korea said on Monday it would put two U.S. tourists on trial for committing crimes against the state, dimming any hopes among their families that they would soon be released. "Their hostile acts were confirmed by evidence and their own testimonies," said the North's official KCNA news agency, referring to Jeffrey Fowle and Matthew Miller who are being held by the isolated country. It gave no details on when they would face court. It was the latest in a flurry of events in the volatile region as Chinese President Xi Jinping visits South Korea this week, and comes a day after Pyongyang fired two short-range ballistic missiles, defying a U.N. ban on such tests. The visit by the head of state of its closest ally to a country with which the North is still technically at war could raise tensions. But in part of the mixed signals sent by Pyongyang, the North offered on Monday to suspend military drills beginning July 4, if the South would call off annual joint exercises with its ally, the United States. "The South Korean government should make a bold decision in response to our special offer and take a big step toward the new future to end the shameful past," the National Defence Commission, the North's top military body, said in comments carried by KCNA. Japan has said it will respond to the missile test in cooperation with the United States and South Korea, but that it would not affect talks it is holding with the North this week on the fate of Japanese citizens kidnapped by the reclusive state decades ago. Jeffrey Fowle, a 56-year-old street repairs worker from Miamisburg, Ohio, was arrested after entering North Korea as a tourist in late April. North Korea is one of the most isolated countries in the world, but its economic backwardness and political system is a draw for some Western visitors keen for a glimpse of life behind the last sliver of the Cold War's iron curtain. A job application uncovered by the Dayton Daily News in Ohio said Fowle described himself as honest, friendly, and dependable. Earlier reports in the paper said Fowle had previously traveled to Sarajevo, Bosnia and had a fascination with the former Soviet Union which led him to look for a Russian bride, whom he later married. "Jeffrey loves to travel and loves the adventure of experiencing different cultures and seeing new places," said a statement from Fowle's family lawyer, released in early June. "Mrs Fowle and the children miss Jeffrey very much, and are anxious for his return home," the statement said. Little is known about fellow U.S. citizen Matthew Miller, who was taken into custody by North Korean officials after entering the country the same month whereupon he ripped up his tourist visa and demanded asylum, according to state media. Miller was traveling alone, said a statement from Uri Tours, the travel agency that took the 24 year-old to North Korea, published on their website. A spokesman for the New Jersey-based travel agency told Reuters Miller was in “good physical condition” and his parents were aware of the situation, but have chosen not to make any statement regarding their son's arrest. In May, the U.S. State Department issued an advisory urging Americans not to travel to North Korea because of the "risk of arbitrary arrest and detention" even while holding valid visas. HAPHAZARD LEGAL SYSTEM North Korea's haphazard and inconsistent legal system makes it difficult to predict the outcome for the detained tourists. It has detained and then released other Americans in the past year, including Korean War veteran Merrill Newman, whom it expelled last December after a month-long detention based on accusations of war crimes related to his service history. Australian missionary John Short was arrested in February this year for leaving copies of bible verses at various tourist sites during his stay. Short, 75, and Newman, 86, were released on account of their advanced age and health condition, state media said in the wake of published confessions from the two men. Another U.S. national, Kenneth Bae, a Christian missionary who had been arrested in November 2012, was convicted and sentenced by North Korea's supreme court to 15 years hard labor last year. Pyongyang has detained a number of U.S. citizens in the past, using them to extract visits by high-profile figures, including former U.S. President Bill Clinton who in 2009 helped secure the release of two U.S. journalists who had secretly entered the country by crossing into the country from China. The journalists, Laura Ling and Korean-American Euna Lee, were released after being tried by a city court in Pyongyang and given a ten-year hard labor sentence. But North Korea has twice canceled visits by Robert King, the U.S. special envoy for North Korean human rights issues, to discuss Bae's case.
Reuters