1919 William Somerset Maugham

It’s about a stock broker who leave behind comfort in mundane life and seek the meaning of his existence- art in a remote island. Like Van Gogh, his works worth hundred more than the original value when he was alive. Many men will not rest in peace until they find the place or profession they’re born for in this life.

Quote:

That must be the story of innumerable couples and the pattern of life it offers has a homely grace. It reminds you of a placid rivulet, meandering smoothly through green pastures and shaded by pleasant trees, till at last it falls into the vast sea; but the sea is so calm, so silent, so indifferent, that you’re troubled suddenly by a vague uneasiness. Perhaps it is only a kind in my nature, strong in me even in those days, that I felt in such an existence, the share of the great majority, something amiss. I recognised its social value, I saw its ordered happiness, but a fever in my blood asked for a wilder course. There seemed to me something alarming in such easy delights. In my heart was a desire to live more dangerously. I was not unprepared for jagged rocks and treacherous shoals if I could only have change-change and the excitement of the unforeseen.

They have abandoned the joy of the world and the love of women for the painful austeritie of the the cloister.

Why should you think that beauty, which is the most precious thing in the world, lies like a stone on the beach for the careless pass-by to pick up idly? Beauty is something wonderful and strange that the artist fashions out of the chaos of the world in the torment of his soul.

(The story is based on the life of the painter Paul Gauguin.)

 Two American investment venture, Veriana and Cantor Exchange, plan to introduce the TrendEX after receiving approval from US trade regulator later in March at the earliest. The future contracts will be based on future box receipts. According to president of Cantor Exchange, Richard Jaycobs, Hollywood was an ideal place for a future market given the on-going production and distribution of products priced at $100m on average and had short life cycle.

 Being a producer in today’s market requires attracting investment as the farmer and rancher did in old times, said Ralph Winter, a film producer. As to the investors, they might have more opinion of a movie than they do the volatile stock market or soybean futures. In the wake of the TrendEX issuance, we could conjure up images of flurry of trailer viewing and reading of movie preview. Heresies from paparazzi will not only serve to attract public eyeballs, but stir the future market. It is not impossible that some investors will join the gossip group in an attempt to make the movie, which they long sell, a hit before its first open release.

 The government made investment decision on market movement and was still buying treasury on a daily basis, according to Ma Yi, director of the State Administration of Foreign Exchange, managing $2,400 billion worth of reserve.

 The anxiety came from US treasury’s released data last month showing China cut its holding by $32.2 billion in December. However the data doesn’t capture its dealing through third party buyers in other financial centers like Hong Kong and London, which Safe does frequent. Adding those factors together, Standard Charter estimates that China’s US Treasury still stood at about $1,020 billion, or 68 percent of its total reserves by the end of 2009.

 If China attempted to diversify its holding, the US treasury market would have been volatile, with large sell-offs matched by corresponding purchase of other foreign assets. However, China was cautious in doing that as any conspicuous movement would draw the market to follow, driving down the cost and devaluing its own assets. Diversifying away from one dominant investment class will thus be a medium term strategy, according to Wang Tao, chief China economist at UBS.

 Currently, there is no much option for China to find home for its large foreign reserve. The only markets that are deep and liquid enough are US and eurozone, said Stephen Green, head of research in greater China for Standard Chartered Bank, but recent crisis drama in EU leaves US as the sole solid economy that could absorb the huge piles of dollars China is sitting on.

 Meanwhile, as the proportion of US holding by domestic investors is increasing, the potential threat from China, now dubbed as the banker of US, will be less menacing.

 Before the report release, Maersk share had gained 15 percent this year, but CEO Nils Smedegaad Audersen said the recent recovery in container volume is just temporary as clients were rebuilding their depleted stocks.

 It is the most severe contract the shipping sector experienced since 1970, when containerization went global. Maersk Shipping lost US 2.09 billion last year against US 583 million profit in 2008. The tanker sector didn’t weather the crisis as well, but its loss of US 255million was overshadowed by the high-profile container unit.  

 The CEO predicted that 2010 would see a modest profit.

 Of the acquisition amount, $25 million will be paid in cash, which will be used to repay government’s bailout for AIG during the financial crisis. AIG stock was up 6.5% at the news.

 This decision scuttled the previous plan by the company to issue IPO in Hong Kong, the $15 million listing of which could have been the largest offering in the world. However Hong Kong Stock Exchange is expecting a silver lining of dual listing by Prudential, who has already listed on UK market.

 Another part of the acquisition will be financed by stocks, indicating that AIG will still be left with a big stack in Prudential. But the company said it will sell the stocks right after an unspecified lock time. Prudential stock fell 20% since the sales agreement, reflecting anxiety among investors for the risk and some suspected manipulation by hedge funds.

 Prudential will more than double its Asian market by the acquisition and some doubt whether it bit more than it could chew. Nevertheless, Prudential taps into a popular prospective of Asia’s booming market, foreseeing the large amount of savings turning into insurance and investment products in years to come. The acquisition also gives Prudential some convenience to crack into the hard nut of Chinese market, where AIG is the sole foreign investor with full license. The rest operate as 50% joint venture. But the success of the acquisition in China will depend on the authority’s decision.

 Sovereign wealth fund of China and Singapore are active in financing Prudential by buying its rights issue. This is one of the ice-breaking moves by state investors to turn interest again on foreign groups after suffering bitter loss in financial crisis. Interestingly, on a global level, the fund invested by Asian governments is shifting to US tax payers.

 Behind their construction, at a time economic crisis hasn’t sent shocks around the world market, was a core assumption of shipping boom from 2001 to 2008, especially following China’s entry into WTO. Those container vessels of MAERSK were actually designed to rush goods from China to America’s west coast at a speed nearing 30 knots, rivaling the average vessels of around 24 knots. The company expected to sell service on speed.

 However, now those “champion runners” fall victim to a doubling in fuel prices, slumping demands and change in industry practice. In spite of their speed, those ships consume as much fuel as largest container ships, which carry three times as much cargo. Around the world, 10.1% container capacity is lay idle.

 Many shipping companies have responded to the crisis by slowing vessel speed while putting more idle vessels into their routes. The speed on average has been reduced from 20 knots to 14 knots. Customers seem not care much as far as the shipment is reliable and cheap.

 Those fast containers with yacht-like hull are unable to perform well at a low speed, thus their chance to deliver commercial service is slim without adaptation. Thus, MAERSK is planning to shorten the vessel. But currently, they are innovatively, if not bizarrely, used for children’s TV adventure show.

slidshow: www.ft.com/sidelinedships

Joseph Lian Yi-zheng in Media Salon

Dressed in black T-shirt and beige jacket, Joseph Lian Yi-zheng, the former chief columnist of Hong Kong Economic Journal, showed up Monday in Hong Kong Baptist University’s Media salon. He was also once a counselor of Central Policy Unit.

While talking optimistically with the students about the development of Hong Kong’s economy and media market, Joseph showed concern over its political prospect after the central Chinese government’s change of leadership in two years time.

The key is whether Xi Jin-ping, the incumbent Chinese vice president as well as the central government’s leading figure in Hong Kong and Macau affairs, would succeed Hu Jing-tao to be the top leader of the Communist Party in 2012. He, during a 2008 visit to Hong Kong, advocated cooperation among legislative, executive and judicial powers.

“I changed my impression to Xi since then,” Joseph said, “He seems to be even more conservative than previous leaders.” He wondered if it was just a slip of tong out of habit in mainland government speech, but then he found “it was not.”

The Central Government Stability Preservation Office, originally set up to eradicate Fa Lun Kung in 2001, now becomes an organ within the Communist Party Central Committee that gives guidelines to all local and central government departments, including the Department of Justice. “Stability overrides all other principles. That means if a case poses hazards for social stability, the rule of law could be cast away,” Joseph continued, “That concept couldn’t be accepted by Hong Kong. It is not right to imprison someone just to prevent a potential demonstration.”

However, that idea of “judicial unity” was continuously advocated by some representatives of National Committee of the Chinese People’s Political Consultative Conference (CPPCC), Joseph concluded.

Joseph boldly bid that if Xi rise to the top of the Communist Party, he might put his stance into practice from the third year of his succession, i.e. 2015. Then, in the following seven years, in case he was re-elected, Hong Kong’s judicial system would be put on trial.

Joseph also commented on the heated topic of functional constituencies. “The power should be determined by election methods,” he said. Since the functional constituencies’ seats are not returned by universal suffrage, they should use professional authority to influence the public, rather than the power to execute. He though Hong Kong is still behind developed countries like US, UK, Japan and Germany in that aspect.

“There is no other country in the world having a political system as ambiguous as Hong Kong, “Joseph said, “Among all my concerned, I’m most worried about the judicial development.”

 Greece entered euro zone in 2001 in hopes of reaching low interest rate and avoiding exchange rate risks that foreign investors were afraid of. After an illusionary prosperity, problems still loom partly due to loose surveillance measure over rampant corruption.

 European Central Government is calling on countries concerned to plug gaping holes in their budget, while worker unions are staging protest against austerity measures. People are worried about the implications of the end of stimulus program that has once propped up the market.

 Meanwhile doubts are posed on euro zone over its ability and solidarity to boost economy without bailout from IMF. Lacking a specific crisis management measure, the organization has only a universal requirement for countries to keep deficit under 3% of GDP.  Whether it is a monetary union or fixed exchange rate system? Someone questioned.

 Nevertheless, ECB compared “flatteringly” Europe’s 6% deficit of GDP with US’ 10%.

 Akio Toyoda, president of Toyota, apologized yesterday for the problems the defect caused for their customers. However, he was criticized for not timely addressing the problem when the first complaint was filed by America last November. Toyoda rose to the top position in June during the full swing of global recession and had since mainly focused on the problem of internal restructure. Some held Toyota’s management responsible for the dented quality, which, though attempting a global reach, still possesses a provincial outlook and mainly centers in Japan.

 Toyota was launched by Toyoda’s grandfather as a family loom-producing business before WWII. When it first entered American market, the clunkers couldn’t match the incumbent giants. But it finally attained a near-legendary status in the market with its efficiency and green ethos. It has always been compared favorably in contrast with America’s carmaker and its practice symbolic of Japanese culture has been written into American management lexicon.

 Nevertheless, Toyota is projecting a rebound in March with scrapper incentives. Some other famous companies like Jonson & Jonson have also faced recall crisis during their growth, but have never drawn attention as great as Toyota, partly due to suspicion of their managers’ “hush-up” by US congress and partly thanks to some celebrities’ complaints of abnormity of their cars which may even not be under the recall plan. Toyoda is calling on the company to return to its principles that make it great so as to regain the market.

 Though employment rate is expected to maintain steady, the 15,000 positions the economy will gain is compared favorably with 85, 000 jobs shed last December. Though some companies will resort to over-time to meet the increasing demand in the beginning, managers admit they will finally hire again if the prosperity continues.

 However, manufacturing alone can not improve the overall improvement, as the service sector, the most labor intensive industry, is still losing jobs-27,000 in December.