The New York Times: JPMorgan Hiring Put China’s Elite on an Easy Track

JPMorgan Hiring Put China’s Elite on an Easy Track

Tang Shuangning of the China Everbright Group. An Tu/European Pressphoto Agency

The New York Times reports that existence of a program originally called “Sons and Daughters.” And although it was supposed to protect JPMorgan Chase’s business dealings in China, the program went so off track that it is now the focus of a federal bribery investigation in the United States, interviews and a confidential government document show.

JPMorgan started the program in 2006 as the friends and family of China’s ruling elite were clamoring for jobs at the bank, according to the interviews with former bank employees and financial executives in China and the United States. The program’s existence, which has not been previously reported, suggests that the bank’s hiring of such employees was widespread.

Children with elite pedigrees faced lower standards. In one instance, according to the interviews, the bank continued to employ the son of Tang Shuangning, the chairman of China Everbright Group, a state-controlled financial conglomerate, even though some JPMorgan officials questioned the younger Mr. Tang’s financial expertise.

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Why is India so bad for women?

Why is India so bad for women?

Women traveling on a bus in Chennai. Photograph: Gustafsson/Rex Features

Of all the rich G20 nations, India has been labelled the worst place to be a woman. But how is this possible in a country that prides itself on being the world’s largest democracy?

Helen Pidd writes for The Guardian about an ashram perched high on a hill above the noisy city of Guwahati in north-east India where there is a small exhibit commemorating the life of India’s most famous son. Alongside an uncomfortable-looking divan where Mahatma Gandhi once slept is a display reminding visitors of something the man himself said in 1921: “Of all the evils for which man has made himself responsible, none is so degrading, so shocking or so brutal as his abuse of the better half of humanity; the female sex (not the weaker sex).”

One evening two weeks ago, just a few miles downhill, a young student left a bar and was set upon by a gang of at least 18 men. They dragged her into the road by her hair, tried to rip off her clothes and smiled at the cameras that filmed it all. It was around 9.30pm on one of Guwahati’s busiest streets – a chaotic three-lane thoroughfare soundtracked by constantly beeping horns and chugging tuk-tuks. But for at least 20 minutes, no one called the police. They easily could have. Many of those present had phones: they were using them to film the scene as the men yanked up the girl’s vest and tugged at her bra and groped her breasts as she begged for help from passing cars. We know this because a cameraman from the local TV channel was there too, capturing the attack for his viewers’ enjoyment. The woman was abused for 45 minutes before the police arrived.

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REUTERS: China’s Everbright Securities says trading system had problem, shares suspended

China's Everbright Securities says trading system had problem, shares suspended

Everbright Securities Co. [CFP]

Major brokerage Everbright Securities Co Ltd said in a filing to the Shanghai Stock Exchange that its trading system encountered problems Friday morning, following a dramatic 5 percent spike in domestic stock indexes that many suspected was the byproduct of a trading error.

Trading in the Chinese company’s shares was suspended in the afternoon, according to a statement on the website of the Shanghai Stock Exchange.

“This morning, Everbright Securities strategic investment department’s proprietary trading bureau had a problem when using its own arbitrage system,” the statement said, adding that the company is investigating the issue.

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IMF calls for Japan reforms, plan to clear debt

IMF calls for Japan reforms, plan to clear debt

TOKYO (AP) — The International Monetary Fund said Japan’s economy is recovering from years of stagnation, but that far-reaching reforms and a “credible plan” are needed to reduce its debt mountain and sustain growth in the long run.

The assessment, in a report released Monday, said the near-term outlook of the world’s third-largest economy “has improved considerably” thanks to monetary easing and increased government spending under Prime Minister Shinzo Abe’s administration.

It forecasts that Japan’s economy will grow 2 percent in 2013, helped by stronger demand at home and overseas, but will expand only 1.2 percent in 2014 as consumers tighten their belts following an expected increase in sales tax.

The IMF’s report, based on a consultation with the Abe government last month, echoes earlier comments by the World Bank’s lending arm on the “Abenomics” strategy of breaking out of a long spell of debilitating deflation by flooding the economy with money. At Abe’s behest, Japan’s central bank is striving to generate 2 percent inflation within the next two years.

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Cons of deregulating finance

Cons of deregulating finance

It is speculated that China is set to accelerate the deregulation of its financial system. For years, China has restricted the ability of its residents and foreign investors to pull and push their money in and out of the country.

While that may be illiberal, there was a sound reason for this restriction: Every emerging market that has scrapped these regulations has had a major financial crisis and subsequent trouble with growth.

The world can’t afford that to happen in China. China is too big to fail.

This issue came to the fore last year when the People’s Bank of China announced that it might “liberalize” its financial system in five to 10 years. The move was in stark contrast to a National Development and Reform Commission-World Bank report that put such a plan much further into the future.

That study cited the overwhelming evidence that shows, first, that dismantling cross-border financial regulations is not associated with growth and, second, that it tends to cause banking crises in economies with fledgling financial systems.

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China Developers’ Financing Hopes Revive on Share Sale Plans

China Developers’ Financing Hopes Revive on Share Sale Plans

Chinese developers may resume share sales on the country’s mainland exchanges as announcements of such plans by property companies in the past week add to signs that the government may allow new equity financing to proceed.

Sundy Land Investment Co. (600077), a Shenyang-based developer, plans to raise as much as 1.5 billion yuan ($245 million) in a private placement to finance two housing projects, the company said in a statement to Shanghai Stock Exchange yesterday. China Merchants Property Development Co. (000024), the country’s third-biggest developer by market value, plans to sell shares to buy assets, according to a statement posted to Shenzhen Stock Exchange.

The planned share sales reinforce expectations that regulators will ease limits on fundraising by developers, according toHaitong International Securities Group Ltd. (665) China will seek “stable and healthy” development of the property market, the Communist Party’s Politburo said July 30, the first time this year that authorities didn’t mention further tightening of restrictions, according to Credit Suisse Group AG and Orient Finance Holdings (H.K.) Ltd.

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Fed Comments Weigh on Asian Shares

Fed Comments Weigh on Asian Shares

Asian markets were spooked Wednesday by fears the U.S. may withdraw its bond-buying program, with stocks in Tokyo slumping 4% to record their biggest decline in over a month.

A sharply higher yen also fueled the drop in Japanese shares with exporters suffering heavily. The yen strengthened to ¥96.93 to the dollar in late Asian trade, compared with ¥97.73 late Tuesday in New York.

The selloff was sparked after two Federal Reserve officials said the central bank could start to withdraw its $85 billion-a-month bond-buying program as early as September, reigniting debate over when the central bank will start to taper. The U.S. stimulus measures have been responsible for heavy buying in Asia earlier this year as global investors sought higher-yielding assets throughout the region.

“A lack of clarity over the tapering scenario seems to be hitting the greenback” versus the yen, said Tim Waterer, senior trader at CMC Markets in Sydney.

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GLOBAL MARKETS-Asian stocks follow Wall St down; dollar dips

GLOBAL MARKETS-Asian stocks follow Wall St down; dollar dips

SYDNEY, Aug 7 (Reuters) – Asian stocks fell to their lowest since mid-July early on Wednesday following a second day of losses on Wall Street as uncertainty about when the Federal Reserve will start to reduce stimulus kept a leash on market bulls.

The dollar ground lower against a basket of major currencies. It hit a six-week low against the yen, which in turn weighed on Japanese stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.4 percent, extending a 0.5 percent decline on Tuesday to trade at their lowest since July 19.

Tokyo’s Nikkei shed 2.4 percent to trade at one-week lows, with exporters such as Toyota Corp losing ground on concerns the stronger yen would erode their dollar earnings when repatriated.

“Because trading volume is likely to be thin, the cash market will likely be swayed by futures trading. The market is keeping an eye on the yen’s level as that has been the cause of recent volatility,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.

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Dublin energy company secures £87m from Japan

Dublin energy company secures £87m from Japan

A JAPANESE trading company will today unveil a €100 million (£87m) equity investment in an energy company behind plans for a 450 megawatt (MW) wind farm off the Fife coast.

Marubeni Corporation will take a 25 per cent stake in MainstreamRenewable Power, which the Dublin-based firm said would enable further big projects to be financed.

The deal gives Marubeni a seat on Mainstream’s board alongside banking giant Barclays, which invested in the company in 2008.

The Marubeni deal signifies a “long-term strategic alliance” for both companies, which will see them working to accelerate Mainstream’s key projects globally. Marubeni already has interests in the renewables sector, including the offshore wind industry in Europe and the electricity supply business in the UK.

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HSBC likely to see substantial fall in profit

HSBC likely to see substantial fall in profit

HSBC is expected to report a significant decline in pre-tax profit for the second quarter from the same period last year.

Eleven analysts, on average, estimated the bank’s pre-tax profit would fall 26.7 per cent to US$6.16 billion, a Bloomberg survey found. The banking giant will post its interim results today after the market closes.

Market participants said they were looking for indications of asset quality health in emerging markets – which showed signs of deterioration at rival Standard Chartered – and progress in cost cutting and revenue generation.

A marked turnaround in its businesses in Europe and North America helped HSBC to post significantly higher results in the first quarter.

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