|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
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Deutsche Bank (DBKGn.DE) Chairman Paul Achleitner has ruled out a European merger or a state bailout after the lender's mortgage settlement with the U.S. Department of Justice, Frankfurter Allgemeine Sonntagszeitung reported.
The bank, Germany's biggest, last week announced a $7.2 billion settlement with the U.S. Department of Justice over its sale and pooling of mortgage securities in the run-up to the 2008 financial crisis.
"The management board in principle looks at everything that could help the business," Achleitner said in an interview with the weekly newspaper published on Sunday.
"At the moment, however, enthusiasm for a pan-European merger is muted as we have other priorities," he said, when asked why Deutsche does not merge with Italy's UniCredit (CRDI.MI) or another lender.
Deutsche, which is trying to simplify its operations to make it more efficient, will keep its investment banking operations and ensure they comply with political and regulatory rules, Achleitner said.
Supervisors including Germany's Bundesbank and the European Central Bank have called for more consolidation in the banking sector, saying there are still too many banks despite a steady fall in the number of branches since the 2008 financial crisis.
Higher capital requirements would put European banks at a competitive disadvantage to their U.S. rivals, Achleitner said, referring to efforts by the Basel committee of supervisors to tighten bank capital rules to avoid a repeat financial crisis.
"The global rules, established with the Basel accord, must not one-sidedly reflect the views of the Americans," Achleitner said.
The former finance chief of Allianz (ALVG.DE) said European banks needed to defend their interests more vigorously against rivals in the United States where lenders are helped by state-sponsored bodies such as Fannie Mae, allowing them to shed part of the risk of mortgages.
"It's obvious that national interests are increasingly being defined and represented in a more robust fashion," Achleitner said. "It's about time that we Europeans stand up for our interests too."
Separately, Achleitner said government aid for players in the financial industry would not become an issue in Germany.
"No one in Germany needs to worry about rescuing banks," said Achleitner, who confirmed he will stand for re-election as chairman at the bank's annual general meeting in May.
By contrast, the Italian government has earmarked 20 billion euros ($21 billion) to bolster its ailing lenders.
The Bank of Italy said on Thursday that total costs for the state bailout of Banca Monte dei Paschi di Siena (BMPS.MI) would come to about 6.6 billion euros.
(Reporting by Andreas Cremer; editing by Gareth Jones/Ruth Pitchford
SEOUL -- LG Electronics will unveil its premium window-like OLED TV at the Consumer Electronics Show in Las Vegas this week that will each bear a price tag of over $10,000, sending a message to its rivals that the South Korean company is asserting its technological advantage in the high-end TV market with the slimmest model, sources said.
The new TVs will have panels that use organic light-emitting diodes and are so light and thin that they can be fitted on walls like windows, or hung like pictures, according to industry sources familiar with the project. The premium TV, which may come in a few sizes starting from 50-plus inches, could be available in the market as early as the first quarter of 2017.
"LG plans to introduce its new high-quality TV, which is very light and thin at the CES. It can be hung on the wall like a window or a picture," an industry source, asking not to be named, told Nikkei Asian Review. "The company completed its preparations for the production. The TVs will be released in the market a few weeks after the CES."
The CES, one of the largest consumer electronics exhibitions in the world, will be held from Jan. 5 to 8.
Another source said that OLED panels used in the new model are slimmer than the 2.5mm ultra-slim panel applied in LG's Signature OLED TV. The model will be the slimmest on the market, but he did not reveal how thin they are. The OLED panels will be supplied by its affiliate LG Display.
Sources said that LG Electronics was betting everything on the TV to keep its leading position in the premium OLED television market. OLED sets now account for about 1% of global television sales in value terms, with LG Electronics controlling most of that meager share.
Earlier last month, Sony announced that it would put OLED TVs on shelves worldwide by summer 2017. The Japanese electronics and media giant said it would source panels from LG Display and draw on its own proprietary technology for image processing.
Panasonic put a 65-inch OLED model on sale in Europe in 2015 and now plans to bring the sets to Japan and Southeast Asia as early as April. Toshiba is scrambling to develop OLED sets of its own. Samsung Electronics, meanwhile, has halted the introduction of new OLED offerings after selling the sets for a time.
LG Display is the frontrunner in the OLED TV panels. The company holds a near monopoly in the market, giving its Japanese rival Sony little choice but to source key components from the display affiliate of LG group.
But, more panel-makers are now challenging the market leader. Japan's JOLED, whose stakeholders include Sony, Panasonic and Japan Display, is developing panels of the size used in televisions. China's BOE Technology Group is working on similar offerings.
BEIJING, Jan. 1 (Xinhua) -- Chinese President Xi Jinping on Sunday called on BRICS countries, namely, Brazil, Russia, India, China and South Africa, to deepen their partnership for a brighter future.
Xi made the call in a letter sent to Russian President Vladimir Putin, South African President Jacob Zuma, Brazilian President Michel Temer and Indian Prime Minister Narendra Modi to brief the leaders on China's blueprint for promoting BRICS cooperation during Chinese presidency over the bloc in 2017.
China will host the ninth BRICS leaders' summit in Xiamen, a coastal city in southeast China's Fujian Province, in September, Xi said.
Over the past decade, BRICS countries have made joint efforts to yield fruits in cooperating on politics, economy and people-to-people exchanges, Xi said.
BRICS countries have also made great strides in their leaders' summits, which has injected new dynamism into their cooperation, he added.
"The BRICS cooperation, a model for cooperation among emerging markets and that among developing countries, has brought benefits to people of BRICS nations and made great contributions to boosting global economic growth, improving global governance and promoting the democratization of international relations," Xi said.
In the second decade for BRICS cooperation starting in 2017, BRICS nations will make greater progress in their cooperation and play a bigger role in international affairs, the Chinese president said.
Facing growing uncertainties and instabilities in international situation, BRICS countries need to enhance solidarity and cooperation and safeguard common interests, he said.
Xi said the Xiamen summit will focus on four aspects -- deepening pragmatic cooperation for common development; enhancing global governance to jointly counter challenges; carrying out people-to-people exchanges to consolidate public support for cooperation; promoting mechanism building to construct broader partnership.
"In accordance with an open, inclusive and win-win BRICS spirit, China will work with other BRICS countries to make the Xiamen summit a success and move forward BRICS cooperation to a new level," Xi said.
The BRIC cooperative mechanism was established in 2006. The first BRIC summit was held in Yekaterinburg, Russia, in 2009. South Africa was admitted by the other BRIC leaders in 2010, adding the "S" to the original grouping. Eight BRICS summits have taken place so far.
With 3 years until the 2020 Tokyo Olympics and Paralympics, parties involved are still haggling over who should shoulder more than half the cost.
The organizing committee had planned to cover the entire cost of the Games. But the committee wants Tokyo, the central government, and local authorities to make up the cost overrun of 950 billion yen, or about 8.1 billion dollars.
Tokyo Governor Yuriko Koike has said she accepts making up part of the shortfall, but she has been calling on the central government to chip in.
The cabinet minister in charge of the Tokyo Games, Tamayo Marukawa, says Tokyo and other local governments should basically cover the cost.
Ten local governments are strongly opposed to the new financial burden. They say the organizing committee should stick to the initial plan.
Existing venues outside Tokyo need to be made barrier-free and add more spectator seats.
Officials say the cost of remodeling such facilities depends on whether the makeover is temporary or permanent. They say another factor is who will pay for it.
Critics say that since time is limited, the parties involved need to agree on cost-sharing as soon as possible.
Just about anyone who had money in the market is saying, "Thank you, 2016!"
The vast majority of investors -- 77% -- made money this year, according to data shared first with CNNMoney by Openfolio, an app that lets people see how their returns stack up to other investors'. Women outperformed men for the third year in a row, Openfolio found.
It's a big turnaround from last year when most people, men and women alike, LOST money.
"Rising investor optimism and the stock market reaching all-time highs is great news to end the year on," says Scott Wren, senior global equity strategist at Wells Fargo Investment Institute.
The average investor made just over 5% in 2016, according to Openfolio.
That may not sound like a lot given that the Dow is up a whopping 13.4%, its biggest gain since 2013, but most investors don't put all their money into U.S. stocks. They diversify by investing in bonds, Europe, Japan, emerging markets and commodities like gold and oil. In fact, Russia turned out to be one of the top-performing stock markets of 2016.
"We're telling investors to stick to what you've got. Stay diversified. This is NOT the environment to take more risk in," says investment strategist Kate Warne of Edward Jones.
Stocks and funds that soared
Anyone disappointed with only a 5% gain should take a look at the savings in their bank account. Savers are still barely earning above 0% interest. Putting money in the market was the more profitable move.
Openfolio found that people who made a lot of money in the markets this year invested in hot tech stocks like Apple (AAPL, Tech30), Facebook (FB, Tech30) and Tesla (TSLA) and financial stocks, which made a huge upswing after Donald Trump won the election.
Apple is by far the most popular stock held by average investors. It is up more than 10% this year on optimism about better iPhone sales (especially after the Samsung Galaxy Note 7 disaster) and new products in the works.
Other popular stocks this year were Facebook (also up 10%), Bank of America (BAC) (up 31%), Goldman Sachs (GS)(up 33%), Advanced Micro Devices (AMD)(up 300%), Amazon (AMZN, Tech30) (up 11%) and Netflix (NFLX, Tech30) (up 8%).
What's next for 2017?
In addition to individual stocks, investors who are ending the year smiling had money in low-cost index funds (Warren Buffett's recommended investment vehicle for regular folks) such as Vanguard FTSE Emerging Markets ETF (VWO) (up 9.3%) and Vanguard Total Stock Market ETF (VTI) (up 10.6%).
People who lost money tended to be holding some popular stocks that tanked this year, including Twitter (TWTR, Tech30) (down 30%), GoPro (GPRO, Tech30) (down 52%), FitBit (FIT) (down 75%) and Under Armour (UA) (down 30%).
So where's the market headed for 2017? The Wall Street "experts" still predict it will go higher, though for a smaller gain than 2016.
"The market may have gotten ahead of itself. It's too soon to know what specific policies president-elect Trump will pursue and which ones he will be able to implement," says Seth Masters, chief investment officer at AB Bernstein.
The general consensus is to buckle up and expect another wild ride. But remember: The U.S. stock market has always made money for investors who stay in for the long haul.
South Korean special prosecutors have arrested a former health and welfare minister as part of an investigation into an influence-peddling scandal involving President Park Geun-hye.
A team of investigators led by an independent counsel on Saturday arrested Moon Hyung-pyo on suspicion of abuse of power. It's the first arrest by the special investigation team.
The investigators suspect Moon pressured the government-affiliated National Pension Service to support a merger last year between Samsung Group companies.
The Service is a major shareholder in one of the firms.
The investigators suspect Samsung sought cooperation for the merger from the presidential office and, in return, made huge donations to funds with links to Park's long-time friend Choi Soon-sil. They suspect donations also went to a company set up in Germany by Choi and her daughter.
The investigators are looking into the possibility of charging Park with illegally soliciting benefits for a third party.
While the price of futures trading in China and Singapore were swinging wildly in recent weeks, the benchmark for the seaborne market underwent a more measured correction after spending much of November above $300.
But now it seems the correction is turning into a rout and the multi-year high of $308.80 for PHCC (Australia free-on-board premium hard coking coal tracked by the Steel Index) may have been the peak.
On Friday the price dropped 5.1% to $226 0 a tonne, the lowest since October 13 and one of the biggest declines on record. In 2011 floods in key export region in Queensland saw the coking coal price touch an all-time high $335 a tonne.
Still, the steelmaking raw material is up 178% in value in 2016 and quarterly contract negotiations between producers and steelmakers could turn out to be the best indicator of where coking coal is heading.
In a recent report TSI said the the low volatility seen in the spot market (the price hovered at its high for nearly three weeks) was a sign that going into quarterly negotiations Japanese steel mills were "wary of making panic buys during this period in order to avoid pushing the indices higher".
There was a more than $100 differential between the spot price average and the fourth quarter contract benchmark. For Q1 contracts, that gap would've all but closed.
Social media firm Snap Inc may be the highest profile tech IPO planned for 2017, with the potential to raise billions.
But more than a dozen expected stock offerings of relatively obscure software firms targeting business customers - little-known names such as Apttus, Tintri and Okta - could be just as important in thawing a long-frozen IPO market, according to investment bankers and advisers who work on IPOs.
Such firms are a "leading indicator" of broader investor demand for market debuts, said Justin Smolkin, head of Americas technology equity capital markets at UBS Group AG (UBSG.S).
"They tend to be viewed as cream of the crop, and where investors make the most money," he said.
Such enterprise software companies generally sell their services through subscriptions that produce reliable revenue streams. They aim to sign contracts lasting several years, giving investors more predictable returns than many Internet or consumer-oriented companies that depend on advertising or high volumes of individual transactions.
The firms provide a range of back-of-the-house services, such as automating business processes, security, accounting, training software and expense management.
Although such companies have moderate valuations, between about $500 million and $4 billion, the sector accounts for most of the tech IPO market, said Will Connolly, Goldman Sachs Group Inc's (GS.N) head of U.S. technology equity capital markets.
"Most of the technology IPO activity is actually not big, large-cap companies going public," Connolly said. "It's small and midcap growth companies going public that are innovators in their own markets and are helping drive the next generation of technology."
Reuters has identified more than a dozen U.S. enterprise software companies that are making preparations for a 2017 IPO including Avalara, MuleSoft, ForeScout Technologies Inc, AppDynamics and Yext. [L1N1EO00X]
In 2016, only six software companies went public, Thomson Reuters data showed.
Greg Becker, chief executive of Silicon Valley Bank, a lender to venture capital-backed companies, predicted that between 30 to 45 venture capital-backed technology companies could go public in 2017, compared to 15 in 2016.
These companies could also be aiming to get ahead of tech giants Airbnb Inc and Uber Technologies Inc, whose long-anticipated IPOs would require ample investor dollars and attention.
If the enterprise software firms' IPOs succeed, it could offer a boost to early-stage investors who provided key funding in the hopes of profiting by selling shares down the line. Only 20 technology companies went public in 2016, less than any year since 2008, according to Thomson Reuters data.
"It will be important for everyone that these deals work well in the market to create positive momentum for the year," said Anthony Kontoleon, global head of syndicate in the equity capital markets group of Credit Suisse Group AG (CSGN.S).
If technology IPOs don’t take off in 2017, some venture capital fund managers could struggle to keep their investors happy. Startups that have attracted and retained talented employees with the promise of a lucrative IPO could also suffer.
The handful of technology companies that managed to go public near the end of 2016 have shown strong stock performances. Twilio Inc (TWLO.N), Coupa Software Inc (COUP.O), Nutanix Inc (NTNX.O) and Blackline Inc (BL.O) are now trading above their offer prices, boosting the confidence of their private peers that there is pent-up demand for such IPOs.
The recent stock market rally and companies beginning to accept a more modest pricing of offerings for IPOs has more tech companies ready to test the waters. Many had put IPO plans on hold in 2016 because they did not want to go public at lower valuations than the private fundraising rounds preceding them.
Enterprise software companies recognize that an IPO could be a major marketing event that gives them clout with potential customers that are publicly traded companies themselves - and conduct extensive due diligence before choosing a software vendor.
"The greatest benefit of an IPO is the transparency it creates. It comes with a much greater sense of legitimacy," said Rob Bernshteyn, chief executive of Coupa Software (COUP.O), a spend management tech company that went public in October.
“Customers want to know you're going to be around for a long time,” Pandey said.
Similar firms now looking to go public realize they have a marketing challenge ahead as they seek to capture investor interest before their market debuts. With names that trip up a spell checker and arcane business-model descriptions, they need to educate investors on their niche strategies and to start those efforts long before the typical two-week investor road shows that precede IPOs.
Apttus, for example, helps salespeople give a price quote quickly when trying to close a complicated deal that includes different products.
The company has already briefed many potential IPO investors in earlier funding rounds, said chief executive officer Kirk Krappe.
"Those investor meetings, and our relationship with Morgan Stanley (MS.N), have helped put us on the map," Krappe said.
(This version of the story has been refiled to add dropped word in paragraph 20)
(Reporting by Liana B. Baker and Heather Somerville in San Francisco and Lauren Hirsch in New York; additional reporting by Stephen Nellis in San Francisco; editing by Greg Roumeliotis and Brian Thevenot)...
Congrats Americans! Your stock markets rallied to record levels this year.
The Dow Jones industrial average was a standout performer, shooting up 14% and approaching the 20,000 point level right at the end of 2016.
But you're not the only ones reveling in sweet stock market gains.
Here's an overview of some of the best performing global markets of the year:
Russia: Up 50%
Russia's RTS index has rallied by 50% since the start of the year and the country's other main index -- Micex -- has shot up by 26%.
Global investors rushed into Russia following the U.S. election because they expect President-elect Donald Trump to help thaw frosty relations between the two nations.
Russia is also heavily reliant on oil revenue, and it's benefited from the recent surge in oil prices.
"The bounce in the oil price has supported the Russian economy and saved it from disaster," said Naeem Aslam, chief analyst at Think Markets in London.
Argentina: Up 45%
Argentina's Merval index surged 45% this year and hit a record high in October on the back of major political shifts in the country and an 18% crash in the currency.
The election of President Mauricio Macri in late 2015 was a turning point for Argentina. Investors hope he'll revive the country's stagnant economy after the previous government left the nation's finances in tatters.
His government lifted currency controls, ended a 15-year battle with U.S. hedge funds and brought Argentina back to international bond markets for the first time since 2001.
Brazil: Up 39%
Brazil's Bovespa index hit a low in January that hadn't been seen since the 2008 global financial crisis. But then investor sentiment turned around and the market caught fire.
"Brazil's markets were at remarkably low valuations at that point [because] of the emerging Petrobras scandal," noted Tim Edwards, a senior director at S&P Dow Jones Indices. "A lack of descent into anarchy as well as rising commodity prices ... saw both [the] currency and stock market recover."
Brazil's main exports -- iron ore, oil and soy beans -- also saw major price increases over the course of the year.
Canada: Up 18%
Like many global stock markets, the TSX Composite index in Toronto rallied from a January low and benefited from the so-called Trump bump.
Canadian equity strategist Matthew Barasch from RBC Dominion Securities said in November that "the sum total of President-elect Trump's policy proposals would be positive for Canada and Canadian stocks, at least for a time."
He predicted that Trump's pro-oil policies would be a major boost for the energy exporter.
Norway: Up 18%
Oslo's All-Share index has been on a steady climb since the 2008 financial crisis, though it experienced a major pullback in early 2016 as oil prices crashed.
Norway's economy and markets are heavily reliant on oil, so the fact that crude prices have more than doubled from their February lows has helped energy stocks surge.
Specifically, Norway's biggest publicly traded company -- Statoil (STO) -- saw shares increase 29% this year. A smaller peer in the sector -- Aker BP -- saw shares soar by about 185%.
Indonesia: Up 15%
Indonesia's stock market posted a lot of bumps and jumps in 2016 but ultimately closed with a 15% gain.
Indonesia's largest publicly traded firms saw their shares rise this year, with most posting double-digit percentage increases.
The country's growing economy is powered predominantly by consumer spending, which means it's relatively insulated from a further slowdown in global trade.
The International Monetary Fund predicts economic growth of 5.3% next year, even faster than 2016.
U.K.: Up 14%
London's benchmark FTSE 100 index defied expectations and hit an all time high this year after Britain voted to leave the European Union.
The vote for Brexit caused the currency to drop to a 31-year low against the U.S. dollar, which provided a "stimulus boost" for the stock market, said Aslam from Think Markets.
The Bank of England's move to support the economy, combined with better-than-expected economic data, has also helped the stock market, said Aslam.
"A combination of these elements kept investors interested, hence we have seen such a stellar rally," he said.
The biggest losers
While most global stock markets rallied, a handful closed the year with deep losses: Italy and China were the biggest losers by far.
Italy's main index -- the FTSE MIB -- dropped 11% as investors worried about the troubled banking sector. Shares in all the major banks dropped sharply and Monte dei Paschi was forced to seek a bailout after its shares fell by 88%.
Chinese stock markets also closed the year with double-digit losses following a gut-wrenching fall in early 2016 when key indexes lost between 25% to 30% of their value in a matter of weeks.
The benchmark Shanghai Composite closed the year with a 12% loss. The Shenzhen market, which is traditionally more volatile, closed 15% down.
The head of the Japanese advertising giant Dentsu has resigned after the suicide of a junior employee was linked to a company culture that required staffers to work huge amounts of overtime.
The company confirmed Thursday that its president and CEO, Tadashi Ishii, would step down after its January board meeting.
Dentsu, which employs 47,000 people and operates in 140 countries, has been in the spotlight following the suicide of an employee on Christmas Day in 2015.
Japanese regulators have found that the woman, Matsuri Takahashi, had been forced to work excessively long hours. The punishing workload resulted in her suicide, they ruled.
Takahashi had clocked about 105 hours of overtime in the month leading up to her death, authorities found.
japan matsuri takahashi
The parents of Matsuri Takahashi, whose suicide was attributed to overwork, spoke at a news conference in October.
Pity Japan's salaryman: Inside a brutal 80-hour workweek
Ishii's resignation comes after investigators raided Dentsu's offices. Japan's Ministry of Health, Labor and Welfare has referred the case to prosecutors.
"We deeply regret failing to prevent the overwork of our new recruit," Ishii said at a press conference. "I offer a sincere apology to the bereaved family and everyone in society."
Japan is known for the brutal work hours demanded of its "salarymen," or office workers. Considered by many to be the backbone of Japan's economy, these employees are expected to always put the company first. Working days are often followed by marathon drinking sessions with colleagues and clients.
Excessive hours are such a big problem that there's even a Japanese word for death by overwork: karoshi.
Relief could be on the way for some workers. Prime Minister Shinzo Abe is pushing labor reforms that would curtail the burden placed on employees.
--Emiko Jozuka and Yoko Wakatsuki contributed to this report.