Posts Tagged ‘business

08
Mar

The Female Factor: Awareness Rises, but Women Still Lag in Pay

PARIS — Companies in the United States, Spain, Canada and Finland lead the world in employing the largest numbers of women from entry level to senior management, according to a report set to be published Monday by the World Economic Forum. Yet the report also found that, despite increasing awareness of gender disparities in the workplace, women at many of the world’s top companies continued to lag behind their male peers in many areas, including pay and opportunities for professional advancement.

Moreover, many of these companies have yet to implement policies to address these gaps, despite pressure from many of their governments to do so.

The forum, based in Switzerland, surveyed 600 heads of human resources offices at the largest employers in 20 countries representing 16 different industries.

The poll assessed companies according to a range of criteria, including rates of female representation, whether the companies measured or set targets for gender balance in pay or promotion, and whether they offered benefits, like paid family leave, to promote work-life balance for their employees.

The findings, which were timed to coincide with the 100th anniversary of International Women’s Day, follow the announcement Friday by the European Union of an initiative aimed at significantly narrowing the union’s average 18 percent gender wage gap, which has changed little in the past 15 years.

A study by the 27-member union last year estimated that closing the wage gap could lead to a potential increase of 15 percent to 45 percent in gross domestic product.

A 2009 report by the International Labor Organization found an average 20 percent difference in pay for men and women employed full time in the Group of 20 largest developed and developing economies. Yet the World Economic Forum’s report found that 72 percent of the companies in its survey had no systems to track salary differences by gender.

In addition, 60 percent of the companies said they had no affirmative action policies to promote women within their hierarchies and did not measure women’s participation in their work forces.

Companies in India had the lowest percentage of female employees, 23 percent, just below Japan, with 24 percent, the forum’s report found.

Turkey, Austria and Italy rounded out the bottom five, with women representing just 26 percent, 29 percent and 30 percent of their staffs, respectively instant payday loans.

As its focus was on companies, the forum’s survey did not assess the status of women working in the public sector or in education, areas where female representation is traditionally high and where policies to promote gender balance are often institutionalized by law.

Women remained in the minority of senior corporate managers, representing just 5 percent of the chief executives of the 600 companies surveyed. Finnish companies in the sample had the largest proportion of female chief executives, with 13 percent, followed closely by Norway and Turkey with 12 percent and Italy and Brazil with 11 percent.

The high percentage of female chief executives at Turkish companies, despite having relatively low levels of female employment, was due to the fact that many of the biggest companies were controlled by families where women were at the helm, said Saadia Zahidi, co-author of the report and head of the forum’s Women Leaders and Gender Parity Program. In Italy, which reported similarly large numbers of women at the top, the companies surveyed were mainly large, multinational corporations.

In both countries, Ms. Zahidi said, “there is a real dearth of women elsewhere in the corporate hierarchy.”

The forum’s findings also follow a global study of 4,500 business school graduates published last month by Catalyst, a U.S.-based organization that advocates for women in the workplace.

The Catalyst study found that, even in this high-potential group, women consistently lagged behind men in advancement and compensation from their very first professional job. The differences held even in comparing men and women of equal levels of work experience and professional aspiration and in discounting for whether or not they had children.

Herminia Ibarra, a professor of leadership and organizational behavior at Insead, an international business school, and a co-author of the forum’s report, said of the findings, “Study after study shows that, in most countries and industries, women enter the workplace pipeline in representative numbers. Then, something fails to happen.”

The Female Factor: Awareness Rises, but Women Still Lag in Pay

04
Mar

Greece prepares tax rises, debt continues to mount

ATHENS (AFP) – Greece, fighting to avert bankruptcy, was to reveal a third wave of tax rises and welfare cuts on Wednesday to win support from the European Union and a reprieve from debt markets.

Prime Minister George Papandreou, who warned lawmakers on Tuesday that the country faced a "wartime situation", was expected to announce the new draconian measures after briefing President Carolos Papoulias.

The latest round of crisis action is believed to include a two-percent increase in sales tax, a pension freeze, heavier benefit cuts for civil servants and steeper tobacco and fuel duties.

The European Commission, the EU's executive arm, insists that Greeks must sort out their fiscal mess — which includes a public debt of nearly 300 billion euros (407 billion dollars) — before expecting any outside help.

Greece must avoid "a nightmare of bankruptcy in which the state would not be able to pay salaries or pensions," Papandreou told lawmakers in Athens. He said: "We find ourselves today in a wartime situation."

That would create a huge headache for its European partners which are alarmed that Greece's problems could cause lasting damage to the credibility and discipline which underpin the eurozone. Related article:EU unveils 2020 vision

Greece needs more than 20 billion euros (27 billion dollars) by May to redeem old debt falling due. It also needs to borrow heavily to finance a public deficit which is close to 13 percent of gross domestic product (GDP).

Overall, the government is desperate to improve its downgraded credit rating and thereby reduce the crippling interest rate, currently slightly above 6.0 percent, which it has to pay to borrow from international investment funds.

And time is short. Papandreou has said that financing needs are assured until the middle of March.

A total of 54 billion euros will have to be raised this year to cover the public deficit which has swollen way beyond the three-percent EU limit make quick cash. Moody's rating agency has estimated that about 15 percent of tax revenues will be absorbed by debt charges this year.

A team of analysts from the Standard and Poor's rating agency is currently in Athens for talks with Greek ministers.

Meanwhile, the sentiment on financial markets about the course of events in Greece is highly uncertain, although there is a suspicion that if the latest round of measures satisfies EU authorities, some sort of support for Greece may emerge in the next week or so.

A Greek official told Dow Jones Newswires that Athens would issue a 10-year bond to raise between three and five billion euros "within days of the announcement of the austerity package."

And economist Neil MacKinnon at VTB Capital told AFP that a rescue "has to be agreed, whether it is some sort of loan package contingent on evidence of Greek budget cuts or debt purchases by EU governments and/or state owned entities or some sort of debt guarantees."

The Greek prime minister flies to Berlin on Friday for talks with German Chancellor Angela Merkel, widely regarded as holding the key to any eurozone bailout.

Papandreou has undertaken to use the crisis to restructure the economy, and cure Greece of decades of fiscal mismanagement and deeply entrenched corruption, but statistics released on Tuesday show that he faces a titanic reform task as bribery is on the rise.

The local branch of Transparency International said that bribes last year rose by 50 million euros from 2008 to 790 million euros (1.1 billion dollars), paid to all parts of the economy, from hospitals to tax officials.

Greece prepares tax rises, debt continues to mount

21
Feb

NAACP elects Brock, 44, as youngest board chairman

NEW YORK – The NAACP elected a health care executive as its youngest board chairman Saturday, continuing a youth movement for the nation’s oldest civil rights organization.

Roslyn M. Brock, 44, was chosen to succeed Julian Bond. She had been vice chairman since 2001 and a member of the NAACP for 25 years.

Brock works for Bon Secours Health Systems in Maryland as vice president for advocacy and government relations, and spent 10 years working on health issues for the W.K. Kellogg Foundation. She joins Benjamin Todd Jealous, the 37-year-old CEO of the NAACP, as leader of the 500,000-member organization.

Brock said she plans to focus on pushing for policy changes to eliminate inequality, strengthening the relationship between the national and local NAACP branches and holding people accountable.

“It’s not always what someone is doing to us, but what we are doing for ourselves,” Brock said in an interview.

The departure of Bond, 70, after 10 years as board chairman marks a turning point for the National Association for the Advancement of Colored Pepole.

Bond came of age in the segregated South, helped found the Student Non-Violent Coordinating Committee and was on the front lines of the protests that led to the nation’s landmark civil rights laws. He is a symbol and icon of “the movement,” which was a defining experience for older generations.

In recent years the NAACP has endured criticism that it is old and out of touch. Then Bond brought in Jealous, then 34, as the NAACP’s youngest CEO, and endorsed Brock’s bid for board chairman.

The selection of young leaders “is deliberate, but it’s also fortuitous,” Bond said. “We are lucky to have had this confluence of a young CEO and a young chair. I don’t think we plotted and planned that in 2010 the stars would align this way.”

Jealous said he belongs to a generation “whose greatest accomplishments are in front of them … who are even more hungry for change.”

Bond said the board asked him to run for another one-year term, but he declined.

“Frankly, this is the most difficult nonpaying job I’ve ever had,” said Bond, who has served in the Georgia state legislature, is a member of several corporate boards and a professor at American University and the University of Virginia easy fast payday loans.

Brock was selected in a vote by the 64-person NAACP board. Her opponent was Rev. Wendell Anthony, leader of the NAACP’s Detroit chapter, who withdrew Friday after he was not re-elected to his seat on the board.

Brock graduated from Virginia Union University and has an MBA from Northwestern, as well as master’s degrees in health care administration and divinity.

She described health care as her passion and said the current reform debate hinges on one fundamental question.

“Am I my brother’s and my sister’s keeper?” Brock asked. “That’s the question that we’ve got to ask our legislators. Are we really, really concerned about our neighbors, and about their health, and their children’s health?”

While acknowledging the need to “retool our front line” and develop young civil rights activists, Brock said the wisdom of the older generation is still needed.

“If it were not for that ‘aging’ membership, the NAACP would not be who it is and what it is today,” she said.

Many conservatives question the need for an NAACP and say that an association for the advancement of white people would be considered racist.

Brock said the NAACP has erroneously been classified as a black group: “We are not. We are a multiracial, multiethnic organization. So as we move into our second century, our desire is to cast our net broader.”

“‘People of color’ or ‘colored people’ really speaks to those who are falling through the cracks … who feel locked out,” she said.

She said the nation was at a pivotal moment after electing the first black president.

“I’d be the first to say that at the NAACP we have to acknowledge how far we’ve come as a nation in terms of race relations, but also in that acknowledgment, understanding that we’re not where we ought to be, but we thank God we’re not what we used to be.

“We need to draw a line in the sand and say thank you, America … but also challenge America that we still have much more work to do.”

___

Jesse Washington covers race and ethnicity for The Associated Press. He is reachable at jwashington(at)ap.org or http://www.twitter.com/jessewashington.

NAACP elects Brock, 44, as youngest board chairman

Hot News: Is it time to give up your adjustable-rate loan?

14
Feb

Insider Trading Charge in China

HONG KONG — The former chairman of one of China’s largest electronics companies has been charged with insider trading, offering bribes and running illegal operations, the state-run China News Service said.

Huang Guangyu’s case was sent to the Beijing Municipal Second Intermediate People’s Court for trial, and the people accused of being his accomplices have also been indicted, China News Service said Saturday without identifying those people.

The charges against Mr. Huang had long been expected. He has been in detention since November 2008, and Chinese officials subsequently took the uncommon step of publicly confirming that he was under investigation by the Ministry of Public Security.

He resigned as chairman of the electronics company, Gome, two months after his detention.

He has been held incommunicado, as is common in China during investigations, and could not be reached Sunday for comment.

Sunday marks the first day of the Lunar New Year holiday, with government and corporate offices closed across China and tens of millions of people going to their hometowns to celebrate.

The long-running scandal over Mr no fax payday loans. Huang’s alleged activities has already tarnished the careers of a series of Chinese officials. Zhu Ying, the former deputy director of the Shanghai Municipal Public Security Bureau, was expelled from the municipal discipline inspection committee of the Communist Party last December. The committee issued a statement at the time saying, without providing details, that he had been stripped of his membership in connection with the investigation of Mr. Huang.

The investigation of Mr. Huang has also resulted in further reviews at the Ministry of Public Security of how the ministry’s economic crimes section had handled the affair, according to the state-run news agency Xinhua, which is larger than China News Service.

Before his arrest, Mr. Huang had been one of the wealthiest people in China, with Forbes magazine estimating his wealth then at $2.7 billion and the Hurun Report, which also keeps track of the wealth of Chinese business leaders, estimating that he was worth $6.3 billion.

Insider Trading Charge in China

01
Feb

News Analysis: Is the Day of Tiny Ads Finally Here?

Every year around this time, a few brave forecasters declare that advertising on mobile devices is poised to become the next big thing in marketing. And every year, the results disappoint.

But this year, with technology powerhouses like Apple and Google introducing whole new mobile devices and buying up ad firms specializing in the small screen, the forecasts may finally be right.

By now, the sales pitch is familiar: The mobile phone offers advertisers all the benefits of traditional Internet ads, including the ability to track their effectiveness. And it lets marketers reach consumers on the go, on a gadget they clutch intimately.

Why, then, according to Juniper Research, did worldwide spending on mobile advertising last year amount to only $1.4 billion — less than one third of one percent of total ad revenue?

For one thing, some marketers remain wary about trying it, for fear of annoying consumers by intruding on their personal space. A technical toolbox poorly equipped to work with small screens has also hurt; after all, banner ads the size of thumbnails don’t make a big impression.

Industry analysts say that now, with the introduction of Apple’s iPad tablet, an entirely new approach to mobile ads could be near.

That is because the iPad, a cross between a laptop and an iPhone, looks more like an iPhone from an ad perspective. It does not support Adobe Flash, the software used for much PC-based advertising. So, to make their ads available to iPad users, marketers may have to develop new kinds of ads, rather than simply adapting existing Web ads no faxing payday loan.

Apple, seeing big potential in mobile advertising, recently agreed to acquire a specialist in that business, Quattro Wireless. That followed a deal by Google to buy one of the largest players in the field, AdMob. The combined $1 billion-plus cost was of a scale not previously seen in the world of advertising on the tiny screen.

“It’s a pretty exciting time for the market,” said Oliver Roxburgh, managing director of the British operations of YOC, a mobile ad agency. “It’s starting to grow up a little.”

Mr. Roxburgh’s enthusiasm has been buoyed by the efforts of Apple and Google and is shared by a growing chorus of industry experts.

Indeed, Windsor Holden, a principal analyst at Juniper Research, predicts that mobile ad spending worldwide will more than quadruple, to $6 billion, by 2014. And he does not shrink from the prediction.

“Everybody has been hoping for about the last five years that the next year would be the one when mobile advertising takes off,” Mr. Holden said. “There are a number of pointers to the possibility that this will be the year when we get some significant traction.”

News Analysis: Is the Day of Tiny Ads Finally Here?

Hot News: Economic Preview: Too soon to say recovery will last

29
Jan

Obama defends economic policies at GOP conclave

BALTIMORE – President Barack Obama has staunchly defended his economic policies in a visit with House Republicans, although he acknowledged the administration initially underestimated how high national joblessness would go.

Obama was responding Friday at a GOP retreat to an assertion by Rep. Mike Pence that he should have embraced an across-the-board tax cut early in his term. The Republican conference chairman said that Obama had chosen to rely on targeted “boutique” tax cuts rather than across-the-board relief.

Obama defended his strategy but conceded officials mistakenly believed unemployment would go no higher than “the 8 percent range payday loan with savings account.” He also said that many of the jobs were lost in December, January and February of 2009, before he took office or before any of his programs took effect. Obama told the Indiana Republican, “I’m assuming you’re not faulting my policies for that.”

Obama defends economic policies at GOP conclave

18
Jan

China markets set for new phase in 2010

SHANGHAI (AFP) – Shanghai's stock market is set for major changes in 2010 that could help close the gap with London and New York as the Chinese city strives to become a global financial centre, analysts say.

China began the year with a strong signal that it is serious about its goal of turning Shanghai into a leading finance hub by 2020, approving a raft of measures that give investors more sophisticated investment options.

Previously, mainland investors were only able to bet on stocks going up, but the State Council, or Cabinet, has approved trials of short-selling and margin trading that would allow investors to profit from falling markets as well.

"The ultimate introduction of the new investment options is, without doubt, a revolutionary move for China's capital markets," said Zhang Jian, a Beijing-based analyst with BOC International, Bank of China's brokerage unit.

Margin trading allows investors to borrow money from financial institutions to buy shares they expect to rise.

If the share price goes up, they can easily pay back the borrowed money. If the price goes down, investors must still pay back the full amount borrowed.

Short-selling allows investors to sell borrowed shares when they expect the price to decline. If the price falls, they can buy the shares at the lower price and return them to the lender.

"It opens a new chapter for China's domestic equity market. With these new rules, the A-share market will no longer be a 'one-way street,' as shorting and hedging become possible," Deutsche Bank economist Jun Ma wrote in a note.

"It is also a major step towards the internationalisation of the Chinese market," he added.

The central government has also approved a stock index futures market that will also give investors opportunities to profit when the market falls and help them hedge risks.

Preparations for the index futures market began years ago, with mock trading already running for three years. Margin and short trading systems tests began in late 2008.

Now that Beijing has given the green light, the new trading options could begin within three months, analysts said guaranteed online payday loans.

"These steps will speed up the pace for Shanghai to become an international financial centre," said Peng Yunliang of Shanghai Securities.

The changes come on top of expectations that the Shanghai Stock Exchange will see its first foreign listing in 2010 — HSBC has said it hopes to be the first, with a listing that could come as early as March, according to reports.

The developments — combined with the launch on October 30 of China's Nasdaq-style ChiNext board, which aims to boost start-ups as well as small and medium-sized companies — mark huge strides for Chinese capital markets and show growing confidence.

Both shorting and margin trading magnify risks, but experts say the practices could help reduce volatility over the long run by increasing liquidity.

Shanghai's market has seen huge swings in recent years. The benchmark Shanghai composite index soared 80 percent last year, but that came after a 65.5 percent plunge in 2008. So far this year the index is down 1.6 percent.

But China's asset prices are expected to continue to take off in 2010, with the economy expected to expand at roughly 10 percent, and investors will want to keep profiting from growing earnings, Macquarie Bank said in a note.

What impact will index futures trading have on the market?

Goldman Sachs studied the mock trading in China, which has seen eligible brokerages and the general public practising in simulations that involve no money since 2007.

The simulations suggest a maturing market with a bias towards long positions, or bets prices will rise, the US investment bank said in a research note, adding volatility declined as the mock trading progressed.

"The developments bring China a step closer to being ready to start foreign listings and attract world-renowned foreign companies to list in a market that is getting more mature and international," Shanghai Securities' Peng said.

China markets set for new phase in 2010

17
Jan

Sponsor Takes the Next Step in Tennis

LAS VEGAS — Fernando Verdasco was straining against a leg-press machine as he raised 710 pounds, yet his strength and conditioning coach, Gil Reyes, was making the most noise. Reyes bellowed in two languages as Verdasco, a Spanish tennis star, raised the massive load 14 times before Reyes finally shouted at him to stop.

“He’s a beast,” Reyes said last month. “I stopped him because I didn’t want him to break down. If he totally maxed out today, there’s a good chance it would throw him off stride tomorrow or the next day.”

Reyes, an American who speaks in the tones and rhythms of an evangelist, was Andre Agassi’s trainer and protector for nearly 20 years. He is now a company man: one of three pillars of the unusual player-development program created and financed by Adidas.

The other pillars are Sven Groeneveld, a veteran Dutch coach who started the program in 2006, and Darren Cahill, an Australian coach who with Reyes helped Agassi keep scaling the heights into his mid-30s.

Groeneveld is based in Amsterdam, and Reyes and Cahill in Las Vegas, the program’s training base. Reyes still works out of his private gym decorated with Agassi’s eight Grand Slam singles trophies and 1996 Olympic gold medal. Agassi remains a frequent visitor and is also an occasional hitting partner and counselor for the players.

But the program’s scope is broader, with Groeneveld and Cahill traveling to tournaments worldwide to offer on-site assistance with Groeneveld’s assistant Mats Merkel.

The executive who devised and supervises the operation is Jim Latham, an American expatriate and former Duke tennis player who saw the program as a way to protect his company’s investment in increasingly young athletes who sometimes lacked structure and expert advice.

“It’s a compact, mobile tennis academy,” said Latham, the head of global sports marketing for tennis at Adidas.

It is also a delicate diplomatic mission in a cutthroat, territorial sport unaccustomed to coaches spreading the wealth of their knowledge democratically or to manufacturers striving to be more than suppliers of apparel and juicy contracts.

“It’s a given that we had to have elite-level coaches,” Latham said. “But the other given for me was that it had to be people who were great communicators, who could go into it with all these people and make them feel included, rather than ‘my way or the highway.’ ”

Manufacturers’ teams are the foundation of sports like Formula One auto racing. But the Adidas developmental team remains unique in tennis, and though it is not without detractors who question its part-time approach, it is playing an increasingly visible role in the sport and has been involved in some big hits as well as misses.

The hits include Ana Ivanovic’s victory at the 2008 French Open and rise to No. 1, and Verdasco’s surprise run to last year’s Australian Open semifinals and rise into the top 10. The team, Groeneveld in particular, also provided counsel and support to Caroline Wozniacki, a Danish teenager coached primarily by her father who broke into the top four last year after reaching the United States Open singles final.

The misses include players like Evgeny Korolev, Anna Chakvetadze, Marcos Baghdatis and Sania Mirza, whose rankings and singles careers have not prospered. Ivanovic also dropped out of the top 10 after a mediocre 2009 season but spent the off-season working primarily with Groeneveld.

National tennis federations have long been involved in developing talent and providing coaching at the professional level. Some private academies have done the same.

But no other company has yet plunged in, and what also makes Adidas’s program unusual is that it does not attempt to be full service, but rather a consultancy business card design.

Latham said Adidas had contracts with about 75 players, more than 40 of whom are in the singles draws at the Australian Open beginning Monday. Luminaries like Jo-Wilfried Tsonga and Justine Henin have not sought help, but Latham estimated that 30 to 35 players have had some contact like seeking a quick tip from Groeneveld or training in Las Vegas, which requires an invitation from Latham.

Working with multiple players reduces a coach’s vulnerability and dependency.

“These guys can give unsugarcoated advice,” Latham said of his team.

But the Adidas principals emphasized that their input should be supplemental and that they wanted top players to have full-time coaches.

“This is not about a threat, this is not about better than, or instead of, it’s a matter of one plus one maybe might equal three,” Latham said.

But Verdasco and Ivanovic thrived under the system when they were without full-time coaches. Patrick Mouratoglou, who owns a prominent academy in France, said that he tried to play a similar role to many players but that he felt it undermined their relationships with their personal coaches. He now focuses on one or two players.

“I don’t doubt the quality or competence of Sven or any member of the team,” he said. “I just think the system is flawed. I stopped doing it. At first, you feel good because everyone loves you, and you give a bit to everyone, and everybody wants you on their court giving input. It’s a drug. If you need affection, it’s amazing. If you want results, it doesn’t work.”

Cahill said that he was sensitive to personal coaches’ concerns but that the benefits of exchanging thoughts and challenging preconceptions outweighed the negatives.

He had other options. Early last year, he trained on a trial basis with Roger Federer in Dubai. But Cahill, who has two children and increasingly strong ties to Las Vegas, said he was not prepared to handle the travel commitment Federer required. Instead, Cahill joined Adidas last March while continuing to do television commentary for ESPN and to work with Agassi’s foundation in Las Vegas.

Latham said the team’s existence has helped Adidas recruit several players, including Daniela Hantuchova, a 26-year-old Slovak who trained with Cahill and Reyes in the off-season. But Latham and Baghdatis failed to reach an agreement, and Baghdatis is no longer under contract.

Verdasco, 26, who won a warm-up event Saturday in Australia, is definitely still with the program: exchanging embraces and fist bumps with Reyes during intense training sessions. He is seeking a second home in Las Vegas to be closer to Reyes and his weights.

Reyes prefers to work one on one, so visitors are limited to three at a time. From the outside, his gym looks like a suburban home. It is in a gated community on a road named after Agassi, who built a house next door for his parents as well as a practice court. The carpeted weight room is filled with machines Reyes designed and built himself for Agassi because nothing tennis specific enough existed.

“If this is the future, I don’t really know,” Verdasco said of the Adidas program. “But of course it really helped me a lot, because I really found Gil that I have this strong connection with. Maybe if Adidas took another guy, maybe I wouldn’t have that same connection, and maybe I wouldn’t like it as much.”

Sponsor Takes the Next Step in Tennis

15
Jan

Waning volatility favors Gap, Ford stocks: analyst

SAN FRANCISCO (MarketWatch) — A calmer environment for stock trading, illustrated by the VIX near mid-2008 lows, should benefit stocks distinguished by potential earnings strength and price momentum — a varied group including Gap Inc., Ford Motor Co. and Goldman Sachs, say analysts at Bank of America Merrill-Lynch.

Stock Market Volatility Suggests Higher Prices

Key measures of stock market volatility, such as the Vix and VStoxx, indicate that stocks are likely to climb. But a consensus view of a 10% rise could be wrong.

The Chicago Board Options Exchange Volatility Index , which uses options contracts based on the S&P 500 index to measure market expectations of near-term volatility, has fallen 18.6% since the start of the year to 17.65. Earlier this week it breached the 17 level, a first since May 2008.

The decline in the index, often dubbed Wall Street’s fear gauge, reflects a steep rise in investor confidence as stocks rebounded from multiyear lows hit in March 2008, battered by the credit crisis and U.S. recession.

U.S. stocks, as measured by the S&P 500, have gained 36% in the past year and have surged 72% off their March lows. The VIX, meanwhile, has fallen 64% in the past year.

Cyclical sectors — or industries seen as benefiting from the early stages of an economic recovery — have led the way. Of the S&P 500’s 10 industry groups, tech, materials and consumer discretionary sectors have gained the most in the past year.

The drop in the VIX “has been associated with the outperformance of pro-economy types of sectors and the lagging behavior of healthcare, staples and more defensive stocks,” said Myles Zyblock, chief institutional strategist at RBC Capital Markets.

He thinks that trend has more room to run.

But further declines in the VIX could lay the groundwork for a different type of stock-picking strategy.

Focus on fundamentals

B. of A. quantitative strategist Savita Subramanian wrote Wednesday that “the likeliest direction for the VIX is a continued decline over the next 12 months” and suggested this extended drop will favor investing strategies that select stocks attractive in terms of their price momentum and their prices compared to past earnings no teletrack payday loans.

A focus on more fundamental measures contrasts with last year, when the dramatic drop in the VIX favored stocks seen as riskier, such as those with small sizes, and those that carried high betas. A high beta indicates a stock tends to make wilder swings than the broader market.

To pick the best stocks for a period of low volatility, B. of A. analysts screened stocks using strategies that seemed to work best in the 2004 to 2006 period.

These included those that were in the top quartile of the S&P 500 based on price momentum, which essentially shows how much these stocks have started to rise; whether Wall Street stock analysts were increasing their earnings estimates for the companies; and valuation based on earnings and cash flow yield. They also had to be rated “buy” by B. of A. stock analysts.

The list includes a handful of consumer oriented stocks — including Gap , Priceline.com , and Ford Motor Co. — as well as miner Freeport McMoRan , brokerage Goldman Sachs Group Inc. , paper company MeadWestvaco and energy company Anadarko Petroleum Corp. .

Shares in Gap have gained 72% over the last 12 months. Priceline has surged 202%; Ford Motor shares have ballooned 420% and Goldman Sachs shares have gained 123%.

The S&P 500, in contrast, has gained 36%.

In Thursday’s trading, major stock indexes rose to new 15-month highs, though most sectors struggled for direction as investors awaited the after-hours release of Intel Corp. .

The Dow Jones Industrial Average closed up 30 points, or 0.3%, to 10,711. The Nasdaq Composite gained 9 points, or 0.4%, to 2,317. The S&P 500 added 3 points, or 0.2%, to 1,148.

Waning volatility favors Gap, Ford stocks: analyst

Hot News: Techs lead Wall St higher; Intel up after results

12
Jan

Japans current account surplus rises by 76.9% in Nov.

TOKYO, Jan. 12 (Xinhua) — Japan’s current account surplus rose by 76.9 percent year on year to 1.103 trillion yen (12 billion dollars) in November, according to statistics released on Tuesday by the Ministry of Finance.

The surplus in the current account is the broadest measure of Japan’s trade with the rest of the world, and was down from 1.3976trillion yen (15 billion dollars) in October.

The balance of trade in goods and services stood at 439.5 billion yen (4.8 billion dollars), down from 618.3 billion yen (6.7 billion dollars) in October.

Exports posted a year-on-year decrease of 7 percent, and stood at 4.704 trillion yen (51 billion dollars). The year-on-year decrease was much smaller than October’s, when exports posted a 24.6 percent fall.

Imports also fell by 18.2 percent year on year and stood at 4.214 trillion yen (46 billion dollars) in November payday loans. Imports were up compared to October, however, when they stood at 4.017 trillion yen (43.5 billion dollars) after falling year on year by 37.7 percent.

Income from overseas securities held by Japanese stood at 732.8 billion yen (8 billion dollars), down from 845.3 billion yen (9.2 billion dollars) for the same month last year.

Japan’s current account surplus fell into a deficit in January last year, causing alarm amid a dour economy. Since then, however, things have picked up for Japan as a tentative recovery led by the manufacturing sector has been kept in place by fiscal stimulus measure implemented by the government and the Bank of Japan (BOJ). Special Report: Global Financial Crisis

Japan’s current account surplus rises by 76.9% in Nov.

05
Jan

Giant Tuna Fetches $177, 000 at Japanese Auction

Filed at 6:29 a.m. ET

TOKYO (AP) — A giant bluefin tuna fetched 16.3 million yen ($177,000) in an auction Tuesday at the world’s largest wholesale fish market in Japan.

The 513-pound (233-kilogram) fish was the priciest since 2001 when a 440-pound (200 kilogram) tuna sold for a record 20.2 million yen ($220,000) at Tokyo’s Tsukiji market.

The gargantuan tuna was bought and shared by the owners of two Japanese sushi restaurants and one Hong Kong-based sushi establishment, said a market representative on condition of anonymity because he was not authorized to disclose the information.

Caught off the coast of northern Japan, the big tuna was among 570 put up for auction Tuesday. About 40 percent of the auctioned fish came from abroad, including from Indonesia and Mexico, the representative said.

Japan is the world’s biggest consumer of seafood with Japanese eating 80 percent of the Atlantic and Pacific bluefins caught no faxing 1 hour payday loans. The two tuna species are the most sought after by sushi lovers.

However, tuna consumption in Japan has declined because of a prolonged economic slump as the world’s second-largest economy struggles to shake off its worst recession since World War II.

”Consumers are shying away from eating tuna … We are very worried about the trend,” the market representative said.

Apart from falling demand for tuna, wholesalers are worried about growing calls for tighter fishing rules amid declining tuna stocks.

The International Commission for the Conservation of Atlantic Tunas in November slashed the quota for the 2010 catch by about one-third to 13,500 tons (12,250 metric tons) — a move criticized by environmentalists as not going far enough.

Giant Tuna Fetches $177, 000 at Japanese Auction

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Dec

Japan retail sales down 1.0% in Nov.

TOKYO, Dec. 28 (Xinhua) — Japanese retail sales fell 1.0 percent in November to 11.39 billion yen from a year earlier, less than a median market forecast for a 1.2 percent decline, according to preliminary data released by the Ministry of Economy, Trade and Industry (METI) on Monday.

The overall Preliminary Report on the Current Survey of Commerce, also revealed Monday that commercial sales in November had fallen 14.6 percent to 40.67 billion yen from a year earlier.

Additionally, wholesale figures for November plummeted 18.7 percent to 29.63 billion yen and sales from large retail stores were also down on year, by a seasonally adjusted 9 companies making payday loans.6 percent to 1.62 billion yen, the report showed.

The survey of commerce aims to clarify trends in business activities of establishments including department stores, chain stores, supermarkets, other large-scale stores and convenience stores. (1 U.S. dollar equals about 91 yen) Special Report: Global Financial Crisis

Japan retail sales down 1.0% in Nov.