China needs 'renewed reform momentum', says OECD survey
China needs a "renewed reform momentum" to sustain long term growth, the Organisation for Economic Co-operation and Development (OECD) has said.
It said the financial sector, urbanization, state ownership and innovation were key areas for reforms.
But it added that China had weathered the global financial crisis better than other OECD member countries.
It said China was on track to become the world's biggest economy by 2016, after allowing for price differences.
"It is well placed to enjoy a fourth decade of rapid catch-up," the OECD said in a survey.
It said that there were signs of China's economic growth picking up pace again after the recent slowdown.
However, it warned that in order "to sustain vigorous and socially inclusive growth over the longer run, renewed reform momentum is required".
Among the recommendations the OECD made include:
- Further easing of restrictions on capital flows and increasing quota of inward investment
- Allowing greater exchange rate flexibility
- Strengthening of intellectual property rights of domestic and foreign innovators and ensuring enforcement of those rights
- Reduction of state-ownership in some sectors
- Same property rights for farmers as urban dwellers
- Better harnessing of ongoing investment in renewable energy sector
- A broad policy mix to reduce pollution and meet environmental goals
Stumbling blocks?
However, the OECD warned that while China's economy had rebounded it continued to face various risks.
On the external front, a slowdown in the global economy poses a key risk to China, the survey said.
Meanwhile on the domestic front, it listed potential threats including rising property prices, which have triggered fears that new asset bubbles could form, along with "excessive off-balance sheet financing" by banks and local governments.
At the same time, the survey said that income inequality and an ageing society were likely to be a source of tension in the long run.
However, it said that these issues can be addressed it China continues to reform key sectors in the near future.
Cyprus MPs due to vote on new plan to secure bailout
MPs in Cyprus are due to begin voting on a series of bills that aim to raise the funds the country needs to secure an international bailout.
The country is in a race against time after the European Central Bank gave Cyprus until Monday to find the money.
If it does not, liquidity to the country's banks could be cut off and they could collapse.
Finance Minister Michael Sarris has reportedly left Moscow after failed talks to secure economic aid.
Mr Sarris sought and failed to obtain a loan of about 5bn euros (£4.3bn; $6.5bn) in return for energy and other assets, according to a report by Bloomberg news agency. Cyprus needs to find 5.8bn euros to qualify for a 10bn-euro bailout loan from the EU and International Monetary Fund (IMF). Parliamentarians flatly rejected a plan to tax bank deposits earlier this week.
European Commission chief Jose Manuel Barroso, who was also in Moscow this week, said he was "very concerned" at recent developments in Cyprus but added: "We have in the past solved bigger problems."
"I hope that this time a solution can also be found."
Many Cypriots fear they will lose their savings, and there have been long queues at cash machines.
"The next move may prove its salvation or destruction," warned the Bank of Cyprus, the country's largest, which itself said to require urgent funding to prevent collapse.
MPs could be seen arriving at parliament in the capital, Nicosia, passing protesters.
Eurozone finance ministers have said they are "ready to discuss with the Cypriot authorities a draft new proposal", which they expect "the Cyprus authorities to present as rapidly as possible".
Political leaders discussed the options with President Nicos Anastasiades on Thursday, and the package was then discussed by the cabinet. But MPs said they needed more time to study the nine bills that make up the draft legislation. If no "Plan B" can be found by Monday, the ECB may cut off funding to the island's banks, it said in a statement triggering their collapse and possibly the country's exit from the euro.
Both Bank of Cyprus and another big bank, Laiki, are believed to be reliant on the ECB's Emergency Liquidity Assistance, provided via the Central Bank of Cyprus.
All Cypriot banks have been shut until next Tuesday to prevent mass withdrawals, but long lines have been forming at cash machines.
They are still dispensing cash but, with such demand, are frequently running out, and on Thursday Laiki radically lowered the daily withdrawal limit to 260 euros.
"There are rumours that Laiki Bank will never open again. I want to take out as much as I can," retired government official Phaedon Vassiliades told AFP news agency as he withdrew cash at a machine in the capital, Nicosia.
A key component of "Plan B" is the establishment of a state "investment solidarity fund" which would issue bonds on state assets to raise the 5.8bn euros required.
Other elements could include restructuring other Cypriot banks, use of pension fund, and accepting an offer of help from Cyprus' wealthy Orthodox Church. A revised levy on deposits also remains a possibility.
Big Russian investors are believed to hold about a third of all Cypriot deposits - and reacted with fury when the initial plan to tax deposits by up to 9.9%.
'Absurd'
Russian Prime Minister Dmitry Medvedev attacked the original bailout proposal for a levy as "absolutely absurd".
"I think that the Eurogroup [the group of eurozone finance ministers] ought to look at further plans for a settlement around Cyprus with the involvement of all interested parties, including Russian structures," he said, speaking after talks with Mr Barroso in Moscow.
Eurogroup chairman Jeroen Dijsselbloem told the European Parliament he doubted a "Plan B" was really possible - and he partially defended the original idea of a levy on deposits, saying "alternatives would have made Cyprus' debt unsustainable".
Any revenue from gas discoveries off Cyprus remains years off and Turkey may challenge its exploitation.
The banking sector dominates the economy and if a viable rescue is not organised soon the island state risks having to abandon the euro.
Cypriot banks were among the bondholders who had to take a big "haircut" in the second massive bailout for Greece.
Since 2008 the eurozone has been badly bruised by the massive bailouts provided for Greece, the Republic of Ireland and Portugal. There is a widespread reluctance to commit more EU taxpayers' money to ailing banks in southern Europe.
US home sales rise fuels recovery hopes
Signs of recovery in the US economy have been underlined with news that home sales are running at a three-year high and that a confidence index rose.
Sales of existing homes in February were at their highest annual rate since November 2009, according to the National Association of Realtors (NAR).
Meanwhile, the Conference Board index of economic indicators rose 0.5%.
On Wednesday, the Federal Reserve said the economy had improved "moderately", but warned about high unemployment.
The NAR said that home sales had gained 0.8% since January to reach an annual pace of 4.98 million units, with the rise all coming from sales of apartments and condominiums. Sales of family homes fell very slightly.
NAR economist Lawrence Yun said low interest rates, improvement in employment and pent-up demand still underpinned the market's continuing expansion.
"Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise," Mr Yun said in the statement.
Meanwhile, a composite index of economic indicators rose 0.5% in February to 94.8, following a similar rise in January.
The Conference Board, a research association, said that eight of the 10 components on the index increased in February, compared with five in January and six in December.
The components include average weekly hours working, manufacturers' new orders, and new building permits issued.
Ken Goldstein, economist at the Conference Board, said: "The US economy is growing slowly now, and with this reading increases hope that it may pick up some momentum in the second half of the year."
In a report on Wednesday, the US Federal Reserve said that the economy had strengthened "moderately" but still needed stimulus measures to underpin recovery.
In a statement after a two-day meeting, the Fed said it would keep its policy of buying $85bn a month of Treasury bonds and mortgage-backed securities.
Although US joblessness has fallen, the Fed said it wanted to see signs of a long-term trend of falling unemployment.
YouTube reaches one billion monthly users
YouTube, the video sharing site owned by Google, has announced it has passed one billion regular users.
Announcing the milestone on its blog, the site said a recent growth in smartphones had helped boost the numbers visiting the site every month.
YouTube's popularity provides Google with a lucrative channel through which to sell advertising, alongside its core search business.
YouTube was launched in 2005 and bought by Google in 2006.
It paid $1.76bn (£1.16bn) for the site, which at the time had an estimated 30-40 million users world wide.
With one billion monthly users, it poses a challenge to Facebook as the internet's largest social network. Facebook reached a billion users in October last year.
"Nearly one out of every two people on the Internet visits YouTube," the company said in its statement.
It was keen to stress the business potential of such a large audience.
"Tens of thousands of partners have created channels that have found and built businesses for passionate, engaged audiences. Advertisers have taken notice," it said, saying that the top 100 brands listed by trade magazine Advertising Age were now running campaigns on YouTube.
The BBC also has a presence on YouTube, with a number of different channels. Some are run by BBC Worldwide, the commercial arm of the corporation.
The site was launched in California by three former PayPal employees.
The first video uploaded was by co-founder Jawed Karim and titled Me at the Zoo.
--BBC
Hedge funds storm back into form
With crisis in Cyprus, gloom in the UK's Budget and growing fears of a correction in the US Treasury market, you could be forgiven for thinking markets were as turbulent as ever.
For some, though, the sun is shining: 2013 has seen some of the strongest returns from hedge fund managers in years.
So much so that many managers are quietly speaking of a return to form for the $2tn global industry -- which has hardly covered itself in glory since 2008.
On average, hedge funds -- once known for their high-octane, high-earning trades and outsize manager pay cheques -- have underpeformed most major markets for four years running.
Indeed, excluding 2009, when assets everywhere rallied, the past three years have been dismal. The average fund made just 11 per cent during the entire period, according to Hedge Fund Research.
Compare that with performance for the first two months of this year: up 2.7 per cent for the average fund and just under 4 per cent for the average equity-focused fund manager, HFR data show.
Most top-tier funds have performed far better.
"If you look at CNBC, then everything is in crisis; but if you look at price action, most of the problems this year have been ignored in the markets," says Luke Ellis, president of Man Group, the world's second-largest hedge fund manager. "It feels relatively easy to pick stocks now after a period where trying to make a return out of anything was very hard."
Not that anyone is quite prepared yet to declare the hedge fund industry's fortunes reversed. Rallies -- and subsequent disappointments -- have been a hallmark of the past few years.
"There was definitely a moment in the first quarter of last year where it felt like things were picking up," says Mr Ellis. "And then look what happened. There was definitely a moment like that in the first quarter of 2011 too."
In 2012 the average hedge fund made just over 6 per cent, while in 2011 the average fund lost just over 5 per cent, according to HFR. The S&P 500 rose nearly 13 per cent during the same 24 months.
The proof, says Mr Ellis, "usually seems to come in the second quarter". This year, though, managers are more confident of their chances, even if it is only March.
Indeed, what aggregated performance numbers obscure are some of the more structural reasons why many are more bullish about the markets they are navigating, and the opportunities these provide.
In particular, of course, it is managers' belief that the eurozone crisis -- notwithstanding recent events in Cyprus -- has been brought under control that has boosted industry gusto.
Politicians' and central bankers' apparent commitment to solving the problems in the financial system -- or at least indefinitely propping it up -- have begun to be felt as a "solid floor under markets for the first time", says one leading equity fund manager. And that leaves non-macro managers to concentrate on the details they prefer.
"This year is going to be one of a return to more normal markets where fundamentals play a much more important role," says Melissa Carnathan, EMEA head of capital introductions at JPMorgan. "Fundamentals are going to start having a much bigger impact."
In terms painted with the broadest brush: companies, and not countries, are where opportunities may now lie.
Equity long/short managers -- which focus on going long and short stocks -- have stood out from the crowd in recent months, with many of the sector's biggest names posting large returns.
Lansdowne Partners, Europe's largest equity long/short manager, has seen its flagship fund rise 7.75 per cent in the year to March 8, according to an investor.
Odey Asset Management, another UK-based equity long/short equity fund, has performed well too. Its flagship fund is up 11.5 per cent so far this year.
Some are faring even better. Sloane Robinson's global fund is up 17 per cent for the year to March 8.
In the US, too, equity-focused managers are faring well. Glenview Capital's flagship fund was up just under 11 per cent in the first two months of the year. Leon Cooperman's Omega Advisors has had a strong start too, and was up 6.5 per cent at the end of February, according to an investor.
Two measures point to further good returns for such managers: correlation and dispersion.
With correlation between stocks lower and dispersion higher, managers are better able to use their skill to identify idiosyncratic opportunities.
Investors in hedge funds are following the returns too.
"Many investors had rotated out of equity long/short funds into macro and credit, but last year had a very bullish equity market and investors noticed that," says Ms Carnathan. "Now they are trying to rectify their underexposure. We are seeing a lot of inquiries. We have had more inquiries than in a long time."
Not that those investors - many of them now pension funds and other large, conservative institutions - expect a great amount. "A number of years of muted performance have led people to finally adjust their expectations," says Ms Carnathan. Where hedge funds once promised returns of 20 per cent or more, now 8 per cent will do.
Global Box Office Revenues Show Significant Increase
The Motion Picture Association of America, Inc. (MPAA) has just released its annual Theatrical Market Statistics Report for 2012. It's revealed that international box office receipts for all films released around the world reached $34.7 billion in 2012, an increase of 6% over 2011.
The significance increase of the global box office was driven by growing foreign markets like Russia, Brazil and China. The box office revenues in the Asian country with a population of over 1.3 billion grew by 36% last year to become the largest international market, surpassing Japan.
A total of $2.7 billion was collected through movie tickets in China although the government imposed very strict rules over what films could and could not be screened. By the end of the year, the world's most populous country was placed at the second spot after North America.
In the U.S. and Canada, box office receipts increased 6% over last year to $10.8 billion while domestic ticket prices remained flat. It mainly came from the release of 2D films as revenue from higher-priced 3D films was comparable to 2011 levels at $1.8 billion.
Disney's fantasy adventure wizard movie "Oz: The Great and Powerful" is currently the most popular movie in North America, but it may be changed as animated feature"The Croods" is estimated to bow with more than $40 million next weekend.
Sitting at the third place was Japan which totaled $2.4 billion in 2012, followed by the U.K. and France with $1.7 billion each. India was next with $1.4 billion, Germany and South Korea followed with $1.3 billion each, Russia and Australia with $1.2 billion each and Brazil with $800 million.
"I am happy to report that in 2012, both global and domestic box office were up and so were domestic admissions," said Senator Chris Dodd, Chairman and CEO of the MPAA. "Great storytelling, memorable characters and an ever-innovating theater experience brought more people around the world to the movie theater in 2012 than ever before."
"It's a powerful reminder of just how much movies matter - not just to our culture, but also to our economy. Our industry supports 2.1 million jobs in the United States and more than 120,000 of those jobs are in movie theaters. So as you're looking at this report, it's important to remember the real economic impact these numbers have."
Downsound CEO Josef Bogdanovich & Ninja plan to make history
Downsound Records CEO Josef Bogdanovich believes his company is on a path to create history in dancehall music. He recently signed iconic clash artiste Desmond Ballentine, popularly known as Ninja Man, to his label.
Though many people might think Ninja Man is past his best musically,Bogdanovich is convinced that Ninja Man still has a lot to offer dancehall music.
"This guy is a living legend, he's one of the greatest artistes ever and I certainly think he has a lot to offer to this generation of dancehall fans. He's one of the greatest dancehall acts ever, he has a lot of history behind his name and Downsound plans to make some more with him, you'll see."
Ninja Man, who began his career in the late 1980s, is known for his famous clashes at Sting with the likes of other dancehall luminaries like Shabba Ranks and Super Cat. The self-styled bad boy of dancehall music has remained a prominent fixture on the local music landscape despite his many run-ins with the law over the years.
He recently declared that he has resigned from clashing to focus on the rebuilding of his recording career and the upliftment of dancehall music.
"Mi done do 26 years as the champion of clashing, mi a resign wid mi title like Lennox Lewis, mi do enough, mi a lef it gi KipRich. Mi teach him how fi clash and right off deejay a sting, a fi him time now fi reign and pass on the knowledge to a next youth. Now mi a focus pon mi career wid Downsound," said Ninja Man.
Bobby Brown Is Out of Jail After Serving Only 9 Hours
Singer Bobby Brown has been released from L.A. County Jail after serving mere 9 hours of his 55-day jail sentence. Los Angeles County sheriff's spokesman Steve Whitmore said that Brown was released and outfitted with an electronic ankle monitor Thursday, March 21 because of jail overcrowding and good behavior.
Jail records stated that Brown turned himself in to authorities on Wednesday, March 20 before 10 A.M. and was released at 6:58 P.M. Whitmore said that Brown would possibly serve no more than nine days due to jail overcrowding, time off for good behavior and credit for "good time work time." However, the county probation officials eventually decided to release him earlier and put an electronic ankle monitor on him, suggesting that he cannot travel outside his home for the time being.
A rep for the songwriter says in a statement that he is currently home with his family.
Brown was sentenced to 55 days in prison and four years probation last month after being arrested and charged for his third DUI in October 2012. The star, who pleaded no contest to the charges, also must complete an 18-month alcohol treatment program following his release. "Mr. Brown continues to remain committed to his sobriety," his attorney Christopher Brown says.
Michael Jackson's Sex Abuse Case May Be Revisited During Trial in Lawsuit Against AEG Live
Los Angeles Superior Court Judge Yvette Palazuelos sets rules for the upcoming trial in Katherine Jackson's lawsuit against AEG Live. AEG's team is allowed to revisit events preceding Michael Jackson's death in 2009, including the issue of child molestation charges against the singer.
The judge apparently agrees with the concert promoter's lawyers that the sex abuse case may be relevant to MJ's history of drug abuse and despondency, while Katherine's attorneys argued it should not be brought up again because the late King of Pop was acquitted on all counts.
In the pre-trial hearing, the judge also says the plaintiffs, Michael's mother Katherine and children Paris, Prince and Blanket, could be called as witnesses. Dr. Conrad Murray who was convicted involuntary manslaughter of the singer's death could also be asked to testify, despite the plaintiffs' objection.
Katherine and her grandchildren from Michael sued AEG Live for millions of dollars, accusing the company of negligently hiring Murray and failing to properly supervise him during his duty of caring for the singer ahead of his "This Is It" concert series. MJ died from an anesthetic overdose before the gig was kicked off.
Before the case goes to trial on April 2, Katherine and her teen grandchildren have been called sit for deposition by AEG's lawyers. They also wanted to depose Blanket, who was only 6 when Michael died, but his doctor argued it would be "medically detrimental" to him.
Prince, 16, was deposed earlier this month. The family's lawyers complained that AEG's team asked irrelevant and repetitive personal questions designed "to agitate the boy, creating serious concern among his guardians and attorneys," but the defendants insisted they only asked "legitimate questions appropriate to a wrongful death suit."
The Jackson's lawyers also had objection to the questioning of Katherine, 82. The family matriarch was allegedly interviewed for nine hours over three days and AEG's lawyers are still asking for a fourth chance. The attorneys representing the family believed the session could have been easily done in two or three hours.
Paris was being questioned Thursday, March 21. She was spotted wearing a blue top, jeans, and brown Ugg boots. Her co-guardian, TJ Jackson, was seen accompanying her.
Jude Law joins Jane film shoot exodus
Jude Law has become the latest big name to quit troubled production Jane Got a Gun, which has already had its director and another star exit the project.
The film made headlines earlier this week when Scottish director Lynne Ramsay did not arrive on the Santa Fe set for the first day of shooting.
Ramsay was swiftly replaced by Warrior director Gavin O'Connor, but this did not stop Law also leaving the project.
Michael Fassbender was the first to pull out, citing scheduling conflicts.
The Hunger star's role was taken by Australian actor Joel Edgerton, who remains with the western alongside its leading lady Natalie Portman and Brazil's Rodrigo Santoro.
According to showbiz website Deadline, Law only signed on to the film in order to work with Ramsay and did not wish to remain following her exit.
That earlier departure drew an exasperated response from the film's producer Scott Steindorff, who said he was "shocked and disappointed" by Ramsay's no-show.
The We Need to Talk About Kevin director has made no comment about her involvement in the film or the reasons for her departure.
Jane Got a Gun tells of a woman, played by Portman, who turns to an ex-lover to help her defend her farm against her outlaw husband's former associates.