Archives for July 2016

Brits buying sex abroad should be prosecuted, say MPs

The Dutch agricultural workers and Rabobank pension funds, advised by institutional property manager Syntrus Achmea Real Estate Finance, have taken a 35 percent stake in a new project.

Run by the city council and the Stadgenoot housing corporation, the plan is to return the district to a residential neighborhood and an effective hub for businesses and retailers by reducing the number of brothels and shops selling marijuana.

The city has been attempting to clean up the area since 2007, after officials announced Amsterdam had attracted criminals from Eastern Europe.

The 1012 Inc redevelopment project got its name from the district’s postcode and holds a portfolio of 133 buildings. The portfolio could “expand considerably in the coming years,” according to Syntrus. The fund has an annual dividend income target of four percent.

The pension funds agreed to participate in the project in return of the right to acquire land to build four residential developments worth €150 million ($165 million) outside the A10 ring road. In these areas the funds plan to build about 750 mid-priced rental apartments.

“Dutch pension funds have a duty towards their members to maximize their risk-adjusted investment returns in a socially responsible way,” said the Syntrus CEO Henk Jagersma.

The city’s residential market has become more attractive for foreign and domestic investors due to a shortage of owner-occupier and rental housing supply, according to the developer.

“An expansion in the number of single households has led to a severe shortfall in the approximately 11,000 new homes that need to be built each year,” the company said.

Article source: https://www.rt.com/business/353153-pensioners-invest-red-light/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

British wheat exports get boost from Brexit

The biggest contributor is Japan’s SoftBank which acquired chip designer ARM Holdings for $32 billion. The deal has been regarded as reducing the uncertainty about doing business with the UK after it backed Brexit.

The new government has hailed the deal prompting Prime Minister Theresa May to declare the country “open for business”.

Analysts say a weak pound will only increase takeovers of British firms this summer.

“Clearly this is a buying opportunity. People with strong currencies – dollar, renminbi, yen – will no doubt be interested in acquiring sound sterling-denominated assets,” Ben Ward, head of UK corporate at law firm Herbert Smith Freehills told Reuters.

Besides the SoftBank-ARM deal, there were others. South African retailer Steinhoff agreed to pay nearly £600 million ($788 million) for British-based discount chain Poundland on July 13.

AMC Entertainment Holdings, an American company owned by the Chinese, wants to acquire London-based Odeon UCI Cinemas to create the world’s largest cinema operator. The deal is estimated at £921 million, or about $1.2 billion.

READ MORE: Some reasons why Brexit is good for Britain

On Monday, Sterling was trading at 1.314 against the greenback, slightly rebounding from a 31-year low of $1.2796 seen on July 6.

While the weak pound is bad for British households, many analysts, including the big four audit firms have noted a positive trend for British exports. EY expects UK exports will increase by 3.4 percent in 2017, while PwC has said a weak domestic currency will be a positive contributor to Britain’s GDP growth next year.

Article source: https://www.rt.com/business/353147-brexit-uk-economy-deals/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Stock plummeted the maximum Tokyo one-day limit of 18 percent on Monday amid concerns that the company’s involvement with the hit-game was misguided.

The company released a statement on Friday after close of trading saying the impact of the game’s success will be “limited” on Nintendo, who own just 32 percent of The Pokémon Company.

Pokémon Go Plus, an accompanying device for the game built by Nintendo, was already factored into the company’s current forecast, according to the statement.

Nintendo’s market value doubled in the two weeks following the release of the augmented reality mobile game which has surpassed Twitter in daily users.

Friday’s statement clarified the company’s actual stake in the game’s success which was a collaboration between The Pokémon Company and Niantic Labs.

READ MORE: Nintendo shares double since Pokémon Go release

Nintendo’s overall stake in the app was estimated to be 13 percent, reported Bloomberg.

Financial analysts have previously warned investors to be cautious of Nintendo stock as they are not the biggest benefactor of the game’s success.

“Nintendo receives royalties for Pokémon titles but surprisingly little direct profit, benefiting instead from the impact of Pokémon titles on hardware sales and penetration,” Jay Defibaugh from the CLSA investment group told Business Insider.

This leads me to ask who is more likely to be living in a fantasy bubble: the Pokemon player or the stock market?

— Electron Dance (@ElectronDance) July 25, 2016

The drop in stock price since the announcement wiped $6.7 billion off the company’s market value. Several companies associated with the game also fell, including its launch partner McDonald’s Holdings Co. (Japan) who saw their value decline by 12 percent.

Morgan Stanley said Nintendo’s luck could change if the game launches in China, where Google Maps data for the game would not be available. The game would require working alongside Chinese internet companies Alibaba and Baidu, a Shanghai data-analyst told Forbes, “and then there is this issue of getting regulatory approval,”.

China is the world’s largest mobile game market, generating $7 billion in revenue in 2015, according to research company Newzoo.

Article source: https://www.rt.com/business/353120-pokemon-nintendo-shares-drop/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Verizon close to acquiring Yahoo – reports

Under the deal which doubles Verizon’s digital advertising business, the company gets Yahoo’s search, mail, and content businesses.  Yahoo will be merged with Verizon’s AOL unit.

“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers,” said Verizon chairman and CEO Lowell McAdam, adding “the acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”

Yahoo is keeping its 15 percent stake in Chinese e-commerce company Alibaba and Yahoo Japan, which have a combined value of $40 billion.

Yahoo initially wanted to spin off its Alibaba stake, but later rejected the idea fearing a hefty tax bill. The company will also retain its cash, non-core patents, convertible notes, and other minority investments.

READ MORE: Zero dollars + compromise: Yahoo settles lawsuit over email privacy

“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo,” CEO Marissa Mayer said in a statement.

‘One-of-a-kind Internet original’: Yahoo listed as an ‘antique’ for sale on Craigslist

With the acquisition deal, Yahoo which was founded in 1994, will change its name and become a publicly-traded investment company.

At the height of the dot-com boom the Silicon Valley web pioneer had a market capitalization of $128 billion, more than double that of media giant Walt Disney.

Once one of the leading internet media businesses, Yahoo has been struggling in the face of stiff competition from rivals like Google and Facebook.

In February, the company formally launched the process of auctioning off its search and advertising business, saying it would fire 15 percent of the workforce.

Last week, Yahoo reported its quarterly earnings, again missing Wall Street estimates. Revenue fell 19 percent in the second quarter to $1.31 billion which was the company’s sixth decline in the past seven periods.

In the company’s last quarterly release, CEO Mayer said its board had made “great progress on strategic alternatives.” Mayer was hired from Google as Yahoo’s CEO in 2012 to turn around the internet giant’s crippled business.

Article source: https://www.rt.com/business/353111-verizon-buys-yahoo-deal/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Turkey post-coup purge: Licenses of 21,000 teachers revoked, 1,577 deans ordered to resign

“Here is what we are telling global investors: Life is back to normal in Turkey,” Binali Yildirim told Bloomberg.

The prime minister ruled out early elections as the government is focused on continued economic growth.

“We have no time to lose with an election,” he said, “for us, an election means slowing down the economy, reducing visibility and halting plans of the government for the future.”

The PM said the purge of those allegedly involved in the attempted overthrow of the government is nearly over, but army reforms will continue.

“There is a serious need to restructure the armed forces. We’ve seen during the coup attempt that there is a security weakness, there are some problems in the chain of command.”

READ MORE: Political uncertainty threatens Turkey’s investment-grade rating

Ankara announced on Sunday it is preparing to prosecute national companies associated with US-based cleric Fetullah Gulen. President Recep Tayyip Erdogan has publically accused Gulen of orchestrating last week’s coup attempt.

“Companies which sponsor the Fetullah terrorist organization and provide financial resources to them will be identified individually. An investigation will be opened into them. They will be closed or necessary procedures will be applied to them,” said Customs and Trade Minister Bulent Tufenkci.

Turkish currency rebounds from 2008 low after failed coup

The prime minister also announced plans for a multibillion-dollar wealth management fund which would not threaten the country’s low budget deficit.

“It’s a structure that will finance large-scale projects. We are going to finance investment through this fund instead of the general budget,” Yildirim said, adding the government also expects Turkish banks to play a role in keeping growth strong.

Following the failed coup attempt, international rating agency Standard and Poor’s lowered Turkey’s sovereign debt rating, citing political uncertainty in the country. Moody’s has put Turkey’s debt on review for a possible downgrade warning the country might lose its investment grade status.

Markets are showing signs of recovery with the Turkish lira, which fell to a record low last week, now gaining for a third day in a row.

The lira rose one percent in early trading Monday to 3.0344 per dollar, the most among 24 emerging-market currencies tracked by Bloomberg. The Borsa Istanbul 100 Index gained 2.2 percent, along with the Borsa Istanbul Banks Sector Index adding 2.3 percent – the most in almost two weeks.

Article source: https://www.rt.com/business/353094-turkey-open-for-business/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

‘One-of-a-kind Internet original’: Yahoo listed as an ‘antique’ for sale on Craigslist

According to the sources, the companies may be ready to announce a deal in the coming days. However, it hasn’t been finalized and may still fall apart.

If it goes ahead, Verizon could probably merge Yahoo’s internet business with its own web search engine AOL.

Among the bidders interested in the company’s core business were Japanese online retailer Rakuten, Yellow Pages owner YP (backed by ATT), Quicken Loans founder Dan Gilbert, Vector Capital Management, private equity suitor TPG, and others.

Analysts expect the final bid in the range of $3.5 billion to $6 billion, to include Yahoo’s land and patents.

This week Yahoo reported its quarterly earnings, again missing Wall Street estimates. Revenue (minus commissions paid to partners for web traffic) fell 19 percent in the second quarter to $1.31 billion. It is the sixth decline in the past seven periods.

In what could be the company’s last quarterly release, CEO Marissa Mayer said on Monday its board had made “great progress on strategic alternatives.”

“With the lowest cost structure and headcount in a decade, we continue to make solid progress against our 2016 plan,” said Mayer. “In addition to our efforts to improve the operating business, our board has made great progress on strategic alternatives. We are relentlessly focused on delivering shareholder value.”

Yahoo also acknowledged that Tumblr, which was the company’s biggest acquisition under Mayer, was now worth only one-third of the $1.1 billion Yahoo paid for it in 2013.

Yahoo has been struggling in the face of stiff competition, formally launched the process of auctioning off its search and advertising business in February. It also said it would fire 15 percent of the workforce.

Article source: https://www.rt.com/business/352706-verizon-yahoo-acquisition-talks/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Cash-strapped Ukraine offers ammonia plant in state fire sale

The government wanted to sell a 99.567 percent stake in Odesky Pryportovy Zavod (OPZ), and was expecting to raise at least $600 million (15 billion hryvnia).

According SPF chief Igor Bilous, investors balked due to the number of reasons, such as the plant’s $193 million debt to agricultural company Group DF, a lack of tax benefits, restrictions on dividend payout, as well as the high cost of the enterprise.

The plant is currently in litigation with a company called Nortima that is supposedly owned by Ukrainian tycoon Igor Kolomoisky. In 2009, Nortima offered the highest of three bids in a privatization tender, but the SPF refused to recognize Nortima as the winner, saying the price of $600 million (5 billion hryvnia at the time) was too low.

“Potential investors were interested in the plant, but after they studied the package of documents and studied the situation in Ukraine and around the facility, they said they were not prepared to take part in the auction under the given conditions,” said the SPF.

The OPZ ammonia plant posted a net profit of 211 million hryvnia ($8.5 million) last year with a net loss of 419 million hryvnia ($16.9 million) in the first quarter, compared to a profit of 90 million hryvnia ($3.6 million) a year earlier.

The government’s privatization program aims to improve the companies’ efficiency and ease investors’ concerns over corruption on the state sector of the Ukraine’s economy.

READ MORE: Crimea to sell Kolomoisky’s assets to compensate swindled depositors of his bank

In February, the Ukrainian parliament adopted a law for the sale of state assets following the suspension of the privatization of some of the country’s main businesses, including power utilities.

Another attempt to sell the plant could be made in the fall, according to Bilous. “I hope the decision to retry the privatization of Odesky will be made in the near future,” he said, stressing that all the risks around the plant and in Ukraine in general had their price.

Article source: https://www.rt.com/business/352705-ukraine-state-privatization-assets/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The game’s popularity has triggered massive buying in Nintendo shares adding as much as $20 billion to the company’s market capitalization which is now at almost $40 billion, even more than Sony. Nintendo shares rose almost seven percent on Friday to 28,220 yen.

“I’ve never seen the trend of such a big company’s shares changing so quickly in such a short period of time,” said Takashi Oba, senior strategist at Okasan Securities as cited by the Guardian.

Pokémon Go was first released in Australia and the US on July 6, and is now available in more than 30 countries. The game has become the most successful mobile-based app in US history with 21 million daily active users.

On Friday, the game was launched in Japan – the home of the Pokémon characters. Within two hours of the release, dozens of people could be seen playing it around Tokyo railway station.

READ MORE: Pokémon stop! Driver immersed in game craze rams police car in Baltimore

“The moment I found out the servers were up I jumped right out of bed, got dressed and ran outside with my iPhone and two extra battery packs,” Samuel Lucas, an Australian YouTuber based in Japan told the BBC.

“So far I’ve been to the Japan post office which was my first poke stop, and now I’m on my way to a big park near my house,” he added.

Japan’s Chief Cabinet Secretary Yoshihide Suga has already warned players to use the game in a safe manner. A government agency also released a nine-point guide, which includes advice against staying out in the summer heat for too long and being aware of natural disasters such as tsunamis while playing outside.

“We wanted to build a game that would inspire people to go outside, get exercise, discover new places and have fun with their friends,” game developer Niantic’s Chief Executive Officer John Hanke said in a video posted with the release. “Pokémon is a beautiful franchise which originated in Japan. When you go out to play, keep your head up, look around, enjoy the world around you and be safe.”

Article source: https://www.rt.com/business/352659-pokemon-doubles-nintendo-shares/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

British wheat exports get boost from Brexit

The report found that in the first few weeks since the historic vote to quit the European Union the British economy had been resilient with no “clear evidence” of a sharp economic slowdown.

Despite the shock many businesses felt over the referendum result, just few of them have contingency plans in place.

The firms are currently adopting a ‘business-as-usual’ approach, with no signs of decline in business activity or lending by banks to companies, reports the regulator.

However, the BoE explains a third of companies expect some negative impact on recruiting as well as investment over the next year.

The real estate market has been proving more flexible than had been expected, the Bank’s network of regional agents says.

At the same time a report by the Office for National Statistics has revealed the labor market has remained strong from March through May with the jobless rate falling to its lowest level in more than a decade.

“As the economy adjusts to the effect of the referendum decision, it is doing so from a position of economic strength,” said UK’s new Chancellor Philip Hammond as cited by The Guardian.

READ MORE: Pound up as UK unemployment falls to lowest since 2005

The City expects a BoE statement on fresh stimulus measures for the economy. “While there may be some relief that the economy may have dodged an immediate sharp slowdown from the Brexit vote, the danger is still very much there given the major uncertainty that is apparent – and there seems a compelling case for the Bank of England to deliver a substantial package of measures at its August meeting to try and bolster business and consumer confidence,” said chief UK economist at IHS Global Insight Howard Archer.

Article source: https://www.rt.com/business/352507-boe-no-brexit-slump/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Crimea Massandra winery makes first exports since sanctions

A representative of Liber Pater Bordeaux, Loic Pasquier, has offered to set up a winery with Russian company Wintex which already operates in Russia’s Krasnodar region.

Crimea’s Minister of Agriculture Andrey Grigorenko suggested the French company “develop a business plan and choose land for the project.”

READ MORE: Italian companies looking to do business in Crimea despite sanctions

“Grape growing and winemaking are the priority sectors of our republic’s agricultural development, that’s why we welcome investment in Crimea,” the minister said, adding that Liber Pater Bordeaux could become part of Crimea’s tax-free economic zone which came into effect in March 2014.

“You should meet all the conditions to become a participant of the tax-free economic zone. Our experts will help to solve all the logistical issues,” Grigorenko told Pasquier.

The head of Crimea Sergey Aksenov has previously said the region offers a safe and comfortable environment for foreign investors willing to run a business on the peninsula.

Crimea expects over 7mn tourists by 2020

The tax-free economic zone makes Crimea particularly attractive. The Italian company Ecologia e Ambiente plans to invest €300 million in the development of grape growing and winemaking in Crimea.

READ MORE: Saudi cash may settle in Crimea

The head of the Italian Baracchi winery Riccardo Baracchi visited Crimea last month, said he intends to set up production of his wine in the region.

Investors from Italy visited Crimea in April looking for land to build an agro-industrial park. They plan to attract dozens of Italian agricultural technology companies to work in the park. The businessmen are interested in building greenhouses and develop wine growing, livestock breeding and processing agricultural goods.

Turkish, Saudi and Chinese businessmen have also expressed an interest in the peninsula. Businessmen from Turkey are expected to invest over $12 billion in Crimea. They have already signed a deal to construct a five-star hotel in Simferopol.

Article source: https://www.rt.com/business/352498-crimea-wine-french-company/?utm_source=rss&utm_medium=rss&utm_campaign=RSS