Olympus dives 24 percent, hit by payments reports


Michael Woodford, 51, was sacked just two weeks after the company promoted the Briton from his role as president with glowing reports on his performance.Combined with Friday’s 18 percent fall, the plunge has wiped out $3.2 billion in market value from the Japanese precision instrument and camera maker.”The dismissal of the president has shattered equity market expectations of structural reform at the firm,” Deutsche analyst Yoshikazu Higurashi wrote in a report.Japanese boards rarely dismiss top executives, so the announcement took financial markets by surprise.In an interview with the Wall Street Journal, 30-year Olympus veteran, Woodford, said he had asked the chairman, Tsuyoshi Kikukawa, to resign over serious governance concerns.Olympus denied any wrongdoing but the sacking triggered a slew of downgrades from brokerages worried about Olympus stepping back from a commitment to cut costs.”All M&A deals were conducted using appropriate accounting, following appropriate processes,” an Olympus spokesman told Reuters.Olympus shares ended 24 percent lower at 1,555 yen, the lowest in two and a half years in a market up 1.5 percent. More than 54 million shares were traded versus average volume of 3 million shares traded over the past 30 days.”This is a very interesting development because obviously there is something very fishy here,” said Nicholas Benes, a corporate governance expert and head of Board Director Training Institute of Japan.”You’d have to be an idiot to think there is not something very fishy here if he’s (Woodford) not getting an explanation for it and they are not giving it publicly after all this garbage has been sent out into the newspapers.”A spokesman at the Tokyo Stock Exchange declined to say whether the bourse would begin any probe into Woodford’s reported allegation. On Monday, major local media outlets largely ignored the ongoing board tussle at Olympus.Analysts said the dismissal could deal a blow to the ambitious cost-cutting plans at Olympus that Woodford had championed. He was credited with successfully cutting costs in the company’s European division.Olympus’s operating profit dipped 41 percent to 35.4 billion yen in ending March 31, 2011, as its struggling camera division lost 15 billion yen.Goldman Sachs, Nomura, Citigroup, JPMorgan and Daiwa Securities also cut their ratings on Olympus.Kikukawa will take over as president and chief executive, roles he had stepped away from to allow Woodford’s appointments.DEEP RIFTSOlympus said Woodford circumvented the company’s management structure by giving orders directly to staff, and said there had been differences over restructuring the R&D division.”There were deep rifts between Mr. Woodford and the rest of management concerning the direction of the company and steps needed to be taken, and the situation was such that it was hampering decision-making,” the Olympus spokesman reiterated on Monday.Woodford joined KeyMed, a medical subsidiary of Olympus in 1980 after working for Schweppes.”Olympus was known in general as a fairly respected company and in general, disclosure in Japan, although not great on a global basis, is quite a bit better than Asian disclosure policies,” said Glen Wood, partner and head of sales in Tokyo at JI-Asia, the equities research arm of Societe Generale.”I think this is a big shock to the market and will have implications for other companies. I don’t think you can look at Japan the same way.” ($1 = 77.365 Japanese Yen)

@7 months ago with 46 notes
#Olympus #dives #24 #percent #hit #by #payments #reports 

COMMODITIES-Oil, copper head for weekly gains before G20 meeting


* Spot gold heads for biggest weekly gain in sixBy Jane LeeKUALA LUMPUR, Oct 14 (Reuters) - Gold, crude oil and copper were headed for a second week of gains on Friday, although investors were unwilling to push commodities higher ahead of a meeting of G20 finance ministers and central bank governors in Paris this weekend.Copper rose 2.7 percent, while gold and Brent crude were up 0.3 percent each as commodities were spurred by data showing that Chinese inflation slowed in September, easing concern the government might be forced to tighten monetary policy.Sentiment was also boosted by news that Slovakia, the last of the 17 euro zone nations, signed off on a plan to expand a key rescue fund for the area.Yet concern remains after Chinese economic data released on Thursday showed a drop in the nation’s trade surplus, heating up worries the Asian giant is not immune to slowing global growth amid a prolonged debt crisis in the euro zone.”Europe is starting to take the crisis a bit more seriously,” said Jeremy Friesen, a Hong Kong-based analyst at Societe Generale. “Hopefully we don’t have to muddle through to 2012.”The meeting of G20 finance chiefs and central bank chiefs from the world’s biggest economies on Friday has spotlighted the need to find a solution to a worsening euro zone debt crisis that threatens to touch off a global recession.The euro dipped 0.1 percent to $1.3770 but hovered above an intraday low hit after S&P cut Spain’s credit rating, and was on track for its biggest weekly rally since January after getting lifted by a flurry of short-covering.Adding to worries about the euro zone’s finances, ratings agency Standard and Poor’s downgraded the long-term credit rating of Spain by one notch, citing weak growth, tightening fiscal conditions and high private sector debt.MSCI’s broadest index of Asia Pacific shares outside Japan eased 0.8 percent, but was set for a weekly gain of about 4.7 percent, which would be the largest weekly increase since late March, when the index ended the week up 4.8 percent.Commodity prices held on to gains from earlier this week after Friday’s Chinese government data showed consumer inflation dipping to 6.1 percent in September, retreating from a three-year peak of 6.5 percent hit in July.Slower inflation cuts the pressure on China to boost interest rates, which could hinder economic growth and crimp demand for metals and fuels.GOLD’S WEEKLY GAINSpot gold was up 0.3 percent at $1,666.44 by 0608 GMT and heading for its biggest weekly gain in six, up 1.7 percent. Gold has risen 17.8 percent so far this year in its 11th annual increase.U.S. gold futures GCcv1 inched up 0.3 percent to $1,673.2 an ounce.Three-month copper on the London Metal Exchange climbed 2.6 percent to $7,500 a tonne, on course for a gain of 0.8 percent on the week.November Brent crude for LCOc1 edged up 61 cents to $111.72 a barrel, after gaining 5.7 percent this week, ahead of the contract expiry at the end of Friday.Brent’s premium to U.S. crude CL-LCO1=R rose to a record of $27.26 a barrel earlier on Friday, up from a previous high of $27.23 on Sept. 6.Brent prices have climbed faster than U.S. crude as political upheaval in the Middle East has disrupted output.The premium also widened after Tuesday’s decision by the Dow Jones-UBS Commodity Index , which had some $80 billion in tracking funds at the middle of the year, to add Brent as a component in 2012 and reduce the weighting for the U.S.-traded West Texas Intermediate.U.S. crude CLc1 for November delivery on the New York Mercantile Exchange rose 0.7 percent to $84.80. Prices have fallen 7.2 percent this year after two straight years of gains.WHEAT REBOUNDSIn the grains market, U.S. soy fell after a four-day rally while wheat rose 0.3 percent after its slide of 6 percent in the last two sessions as the market was weighed down by a U.S. government forecast of higher global and U.S. grain supplies, while corn was unchanged.Chicago Board of Trade November soybeans fell 0.5 percent to $12.51-1/4 a bushel, while December wheat gained 0.6 percent to $6.21-3/4 a bushel. December corn was flat at $6.38-1/2 a bushel.(With additional reporting by Florence Tan, Carrie Ho and Naveen Thukral)

@7 months ago with 59 notes
#COMMODITIESOil #copper #head #for #weekly #gains #before #G20 #meeting 

Afghan rights worries after eviction of hunger striker


Former member of parliament Semin Barekzai stopped eating and moved into a tent outside parliament at the start of October to protest being stripped of her seat by poll authorities in August, nearly a year after the vote.Her protest was into its 12th day, gathering growing Afghan and international media attention, when police abruptly ended it on Thursday night, on the order of the Interior Ministry.It was not clear if Barekzai was continuing the hunger strike in hospital, as she could not be reached.”There are a lot of really serious human rights violations in Afghanistan, but until now the government has been relatively tolerant of free speech, so this seems like an alarming new approach to dealing with dissent,” said Heather Barr, at Human Rights Watch Afghanistan.Hunger strikes are unusual in Afghanistan though a familiar political weapon in nearby India, and Barekzai’s campaign exposed divisions on how democracy should function in the war-torn, conservative and ethnically divided country.Top religious leaders condemned hunger strikes as un-Islamic and poll authorities said she had been fairly beaten and they could not be held responsible for her fate.But women marched in support, and some 15 people including students and a member of parliament joined the hunger strike this week.Barekzai’s protest is the latest challenge for a troubled parliament, which over a year after a fraud marred election is still barely functioning. Her removal is likely to provoke more turmoil in the legislature.”Some people within the parliament I can imagine going crazy about what happened, some because they support her political demands…and others because they share the use of non-violent tactics to put pressure on the government,” said Fabrizio Foschino, at Afghanistan Analysts’ Network.VOLUNTARY OR FORCED?Barekzai’s supporters and the police agree that officers dismantled four tents housing the hunger strikers, but their accounts of the evening diverge otherwise.The lawmaker who was also on hunger strike said armed police overwhelmed protesters, forced Barekzai roughly into an ambulance, and arrested some of her supporters.”It was catastrophic,” said Nelofar Ibrahimi, describing how hundreds of police — she estimated up to 500 — arrived around 10 p.m. (1730 GMT) and dragged away a disheveled Barekzai.”They put her into an ambulance but with her legs still hanging out. When they closed the door she got some injuries in her legs,” she added. They arrested others who had joined the hunger strike and Barekzai’s husband, she added.A police spokesman said that Barekzai went voluntarily to hospital and the tents were dismantled because there was a credible security threat against them.”We had specific information about an attack on Barekzai and also her health was very bad so it was our duty to help her,” said Hashmatullah Stanekzai, a spokesman for Kabul’s police chief, who said police arrived around 8 p.m.”A team of unarmed officers went to the tent. In a very calm conversation they persuaded Barekzai to leave the tent.”He dismissed Ibrahimi’s description of hundreds of policemen, but did not say how large the team was.Stanekzai said the Interior Ministry, which controls Afghanistan’s police, ordered the “rescue” of Barekzai. The ministry could not be reached for comment on Friday.The police account raises questions because Barekzai had repeatedly refused to go to hospital during her hunger strike, and sworn she would not eat until given back her seat in parliament, even if it caused her death.It was not clear if she was attempting to continue her protest from a hospital bed.Barekzai, her husband and a relative who had acted as her spokesman could not be reached on Friday, and the hospital to which she was taken blocked journalists from coming inside.Forcing her to hospital, or forcing her to eat, would have been illegal, Barr from Human Rights Watch said.”Taking someone to the hospital involuntarily for reasons other than a psychiatric crisis is not permitted under many different human rights conventions, which Afghanistan is a signatory to,” she said.

@7 months ago
#Afghan #rights #worries #after #eviction #of #hunger #striker 

HK shares up on mainland property, China creeps higher


* HK rally since Oct. 4 largely on short-covering - dealer* Mainland property leads HK gains after bullish sales* Signs of bearish trend bottoming out in ShanghaiBy Clement TanSHANGHAI, Oct 13 (Reuters) - Hong Kong shares were higher at midday on Thursday, poised to extend a five-session winning streak on strength in mainland property developers that posted strong gains in contract sales for the first three quarters of the year.Turnover on the Hong Kong bourse remained lacklustre, as it has been over the last five sessions, suggesting investors are still cautious despite a boost from a mainland sovereign wealth fund earlier this week after it raised its controlling stakes in the “Big Four” Chinese banks.”Retail investors have not been really chasing this rally. A lot of investors, caught out by this change of sentiment, are just covering short positions,” said Tanrich Securities vice-president of equity sales Jackson Wong in Hong Kong.The Hang Seng Index was up 1.91 percent at 18,680.08 at the midday trading break. It has regained almost 15 percent since hitting a 29-month low on Oct. 4. The China Enterprises Index outperformed, jumping 3.05 percent.Mainland property developers played a big part in the gains. China Resources Land Ltd jumped 14.6 percent and Evergrande Real Estate Group Ltd advanced 20.3 percent in strong volume.Thursday’s gain came after Evergrande said its property sales in September jumped 79.4 percent from a year earlier, the latest major Chinese developer to announcing strong growth in contract sales in 2011 to date despite Beijing’s efforts to cool the property market.Fears of a hard landing for the Chinese economy have hit mainland property and financial stocks hardest as longer-term investors liquidated positions and as short-selling spiked. Evergrande lost almost half of its market capitalisation in September alone.On the Hang Seng Index, gains on Thursday put it at the top end of a downside gap that opened up between the low of Sept. 21, at 18,698.9, and the high on Sept 22, at 18,296.8, one of several that opened up after losses topped 14 percent last month.MATERIALS SUPPORT SHANGHAI GAINSThe Shanghai Composite Index was up 0.5 percent at midday as the highly cyclical materials sector led gains with A-share turnover at the highest since Aug. 12, suggesting investors were regaining an appetite for risk.With the Shanghai benchmark’s 3 percent climb on Wednesday entirely enveloping Tuesday’s uptick on the charts in a down trend and in strong volume, there are strong suggestions that bearishness could be bottoming out on the Shanghai benchmark.Anhui Conch Cement Co Ltd jumped 4.4 percent, while Aluminium Corp of China Ltd (Chalco) and Baoshan Iron & Steel Co Ltd each gained 1.7 percent.Anhui Conch lost more than 22.5 percent in September, its worst month since the 2008 financial crisis, compared with an 8 percent decline on the Shanghai Composite Index.Several funds have been gradually returning to mainland markets since Central Huijin, the domestic investment arm of the country’s sovereign wealth fund, was reported on Monday to be raising its stakes in the “Big Four” Chinese banks over the next 12 months.Several analysts said Huijin’s move was not only seen by investors as an affirmation of the investment value of banking stocks but also a boost to sentiment, with investors assured the government would do all it took to support the market.

@7 months ago with 7 notes
#HK #shares #up #on #mainland #property #China #creeps #higher