Khamis, 25 Julai 2013

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AIA upbeats with its value of new business

Posted: 25 Jul 2013 07:06 PM PDT

HONG KONG: AIA Group Ltd, the world's fourth-largest insurer by market capitalisation, reported on Friday a forecast-beating 26 per cent increase in its value of new business in the first half of the year, buoyed by growth across its markets in Asia.

Value of new business (VONB) measures the projected profits from new policies. The growth in that metric, which chief executive Mark Tucker has focused on as an indicator of the company's success, was particularly strong in Malaysia at 69 per cent higher than the same period last year. That represents the group's successful integration of ING's former business in the country, bought by AIA in October last year.

AIA also managed a 27 per cent increase in new business growth in China at a time when the economy is slowing, a result that the company attributed to improvement in its product mix and an increase in the number of active sales agents on the mainland.

VONB rose to US$645 million from US$512 million a year earlier, the Hong Kong-based company said. That beat predictions of 21 per cent growth, according to the average estimate of three analysts polled by Thomson Reuters. VONB margins fell one percentage point to 41.6 per cent.

Shares of AIA rose almost two per cent in early trade before erasing gains to trade down 0.5 per cent. The benchmark Hang Seng Index was 0.2 per cent lower.

AIA's shares have risen 18 per cent in the year to date, outperforming those of local peers like PICC, Ping An Group and China Life, which have fallen, data from Thomson Reuters StarMine shows.-- Reuters

FBM KLCI declines in early trade

Posted: 25 Jul 2013 06:40 PM PDT

Malaysia's benchmark stock index dropped in early trade, dragged by losses in the country's second largest lender CIMB Group Holdings Bhd and consumer products-to-property conglomerate PPB Group Bhd.

The index, which was down 0.1 per cent at 1,805.82 points at 9.06am in Kuala Lumpur, underperformed MSCI's broadest index of Asia Pacific shares outside Japan that rose 0.5 per cent, while it outperformed Tokyo's Nikkei share average that fell 1.6 per cent.

Shares of both CIMB and PBB dropped about 0.7 per cent.

"A mixture of cautious mood and profit-taking activity could cap our Malaysian bourse performance for the time being," HwangDBS Vickers Research said in a research note to clients on Friday.

"On the chart, the benchmark FBM KLCI will probably move sideways with a marginal downward bias ahead. Its key support line is presently seen at the psychological mark of 1,800."

HwangDBS said investors would watch Encorp Bhd after the property developer announced it had won a contract for RM114 million to construct a business centre in Selangor, the country's richest state.

Encorp shares were up 2.7 per cent at 96 sen at 9.09am.-- Reuters

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80 dead after train derails, splits apart in Spain - Fortune

Posted: 25 Jul 2013 08:25 AM PDT

STORY HIGHLIGHTS
  • NEW: Death toll rises to 80, local official confirms, with scores more people injured
  • At least five Americans reported injured; train driver is being questioned
  • Crash may be linked to train going too fast, transport minister tells radio station
  • Witness: "The train was broken in half. ... It was quite shocking"

Are you there? Send us your photos, videos.

Santiago de Compostela, Spain (CNN) -- The train races into view, and in the space of a heartbeat, the cars derail and crash into a wall of concrete, flipping onto their sides and skidding along the track with terrifying speed and force.

Security footage shows the horror of the moment an express train derailed as it hurtled around a curve in northwestern Spain on Wednesday, killing at least 80 people, a spokeswoman for the Spanish government in the Galicia region said.

Flames burst out of one train car as another car was snapped in half after the crash. Rescue crews and fellow passengers pulled bodies through broken windows and pried open doors as stunned survivors looked on.

Investigations into the cause of the crash continue, but suggestions that the train was traveling too fast appear to be gaining weight.

The train driver is being questioned by police and is under formal investigation, said Maria Pardo Rios, a spokeswoman for the Galicia regional supreme court. "He is not being charged by a judge at the moment -- it is all at a police level," she said.

A car from an express train that crashed is lifted Thursday, July 25, at Angrois near Santiago de Compostela, Spain. The train derailed as it hurtled around a curve Wednesday, July 24, killing at least 80 and injuring more than 175, as of Thursday morning, officials said.A car from an express train that crashed is lifted Thursday, July 25, at Angrois near Santiago de Compostela, Spain. The train derailed as it hurtled around a curve Wednesday, July 24, killing at least 80 and injuring more than 175, as of Thursday morning, officials said.
Deadly train crash in Spain
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Ninety-five of the 178 injured are still hospitalized, the local government's official Twitter account said. Thirty-two adults and four children are in critical condition.

At least 73 people died at the scene and the others at the hospital, Rios said. In Spain, judges typically record deaths that take place outside of hospitals.

Judicial teams are still at the crash site and expect to find more bodies, she told CNN on Thursday morning.

At least five Americans were injured in the crash, a U.S. State Department official said Thursday. The U.S. Embassy in Madrid is trying to determine the exact number. "At this time, we have not received any reports of U.S. citizen deaths," the official said.

Interim charge d'affaires Luis G. Moreno at the embassy said it was in touch "with families of some injured American citizens."

"We are deeply shocked by the news of last night's train crash in Galicia. Our hearts and prayers are with the friends and families of the victims," he said.

UK Foreign Secretary William Hague said one British citizen was injured.

The crash came on the eve of a public holiday held to mark the region's saint's day. Local officials canceled festivities planned for Wednesday night and Thursday across Galicia.

Train's speed questioned

The state railway, Renfe, said the train crashed on a curve several kilometers from the train station in the city of Santiago de Compostela, a popular tourist destination.

The train was nearing the end of a six-hour trip from Madrid to the town of Ferrol in northwest Spain when it derailed at 8:41 p.m. Wednesday, the railway said.

It was unclear how fast the train was traveling when it crashed. It was capable of going up to 250 kilometers per hour (155 mph), said Julio Hermida, a spokesman for the state railway.

The driver, who suffered minor injuries, told police he had entered the bend too fast, TVE reported.

Rafael Catala, secretary of state for transport and housing, told Spanish radio network Cadena SER that the "tragedy appears to be linked to the train going too fast," but that the reasons for that are not yet known.

Spanish news agency Efe and national daily El Pais cited sources within the investigation as saying that the driver had said the train was going at about 190 kilometers per hour, and that the limit on that curve was 80 kilometers per hour (50 mph.)

The president of Renfe, Julio Gomez-Pomar, told radio station COPE on Thursday that the train had undergone a routine inspection that same morning.

"The train did not have an operating problem," he said. "The maintenance and control record of the train was perfect."

Mourning declared

Alberto Nunez Feijoo, head of the regional government in Galicia, declared seven days of mourning in the region for victims of the tragedy.

Spanish Prime Minister Mariano Rajoy viewed the scene of devastation Thursday morning and visited some of the hospitalized crash victims.

Rajoy, who is from the area, told a news conference there was a "huge challenge" ahead, not least in identifying all those killed and informing their families, and he praised the response of everyone who has helped after the crash.

Two investigations are under way, he said, adding, "We want to establish what happened."

Rajoy declared three days of national mourning to honor the victims of the crash.

The prime minister came under fire in Spanish media after a condolences message for the train crash victims posted by his office late Wednesday included a paragraph apparently "copied and pasted" from a statement previously sent to victims of an earthquake in Gansu, China.

''I would like to express my deepest condolences for the loss of human lives and the material damage from the earthquake that has occurred in Gansu has caused," the note said.

Spain's King Juan Carlos and Queen Sofia are to visit Santiago de Compostela later Thursday.

The royal family has canceled all events scheduled for the day out of respect for the day of mourning, the royal household told CNN.

Thunderous bang

A passenger who got off at the last stop before the train derailed told the broadcaster it was packed with people at the time.

Residents who lived near the tracks told the Voz de Galicia newspaper that they heard a thunderous bang when the train crashed. Many of them rushed to the area with blankets and bottled water for the injured, the newspaper reported.

"The train had broken in half. Some pieces were on top, some pieces were on the bottom," said Ivette Rubiera Cabrera of Florida, who caught a glimpse of the wreckage while on a family vacation in Spain and sent photos to CNN's iReport.

"It was quite shocking," she said. "We had never seen anything like that. We had just been on the train last week."

Oscar Mateos told the El Pais newspaper that he saw fellow passengers thrown to the floor, then tossed from one side of the train to the other.

"Help came in five minutes, but that time became an eternity," he said. "I helped people get out with broken legs and many bruises."

Alen Perez, 16, said he had been walking nearby and saw passengers helping each other out of the train.

Emergency vehicles swarmed the scene. There were several bodies on the ground, he said.

Photos he took of the crash site showed mangled pieces of a train car and black smoke billowing out of the wreckage.

Crash investigation

Investigators are looking at all possible causes of the crash, a senior aide to the prime minister said Wednesday. An initial assessment indicated it probably wasn't an act of terrorism.

Are you there and safe? Tell us what's happening

Renfe's spokesman said he did not know how many crew members were aboard the train when it crashed. Normally, there would be at least five crew members on a train like that, he said.

Officials appealed for blood donations just after the crash but on Thursday said the short-term needs were met.

Herman Van Rompuy, president of the European Council, expressed condolences from the European Union.

Pope Francis, currently on a visit to Brazil for World Youth Day, sent a telegram to the bishop of Santiago de Compostela, Julian Barrio Barrio, offering his support and prayers for all those affected by the tragedy.

King Juan Carlos earlier said the accident had saddened the country and the international community. He sent a message to the victims and their families conveying "the deepest love and all the solidarity from the Royal Family, and from the whole nation."

CNN's Al Goodman reported from Santiago de Compostela and Laura Perez Maestro from Galicia. CNN's Laura Smith-Spark wrote in London. CNN's Catherine E. Shoichet, Elwyn Lopez, Patrick Sung, Eric Marrapodi, Jill Dougherty, Nelson Quinones, Marysabel Huston-Crespo, Mariano Castillo, and David Valenzuela contributed to this report.

Hedge fund SAC Capital indicted - USA TODAY

Posted: 25 Jul 2013 08:19 AM PDT

NEW YORK — SAC Capital Advisors, one of Wall Street's largest and most profitable hedge funds, has been indicted on criminal charges for its role in insider trading offenses committed over a decade by many of its employees.

Though SAC Capital billionaire founder and head Steven Cohen was not charged individually, the indictment charged his Connecticut-based hedge fund and three of its affiliates with wire fraud and four counts of securities fraud — allegations that could cripple the nationally known fund.

Richard Lee, an SAC portfolio manager responsible for directing a $1.25 billion "special situations fund," pleaded guilty to insider trading charges Tuesday in the years-long SAC Capital investigation, the Manhattan U.S. Attorney's office said as prosecutors unsealed his plea.

The charges represent the hardest yet in a series of major legal blows for Cohen, who runs the fund and uses it as an investment and trading vehicle for his personal fortune.

The 41-page indictment charged that the insider trading scheme "was substantial, pervasive and on a scale without known precedent in the hedge fund industry."

Documents: Indictment and related documents

The alleged scheme was run through numerous portfolio managers and research analysts "who engaged in a pattern of obtaining inside information from dozens of publicly traded companies across multiple industry sectors," the indictment charged. The company allegedly:

• Sought to hire portfolio managers and analysts "with proven access to public company contacts likely to possess inside information."

• Gave portfolio managers financial incentives to give Cohen recommendations about "high conviction" trading ideas in which they had an "edge" over other investors. But the managers weren't "questioned when making trading recommendations that appeared to be based on inside information," the indictment charged.

• Failed to use effective compliance procedures or practices to prevent portfolio managers and analysts from engaging in insider trading.

"The relentless pursuit of an information 'edge' fostered a business culture within SAC in which there was no meaningful commitment to ensure that such 'edge' came from legitimate research and not inside information," the indictment charged. "The predictable and forseeable result ... was systematic insider trading ... resulting in hundreds of millions of dollars of illegal profits and avoided losses at the expense of members of the investing public."

Manhattan U.S. Attorney Preet Bharara scheduled a 1 p.m. news conference to discuss the case.

An SAC Capital spokesman did not immediately respond to messages seeking comment on the charges. But the company has said the company and Cohen had done nothing wrong.

The indictment could speed a recent outflow of investors from SAC Capital, though the company earlier this week sent employees a notice that it planned to continue normal operations. Until recent months, the fund held an estimated $15 billion.

Stuart Slotnick, a New York City defense lawyer who's not involved in the case, said "there's a great likelihood they (SAC Capital) will continue to lose investors" as a result of the government action.

"But don't forget, there are billions of dollars of (Cohen's) personal money in the fund," said Slotnick. "And what may result, at least in the short term, is that the business turns into a family fund, a family business that has employees, has a corporate structure and continues."

The widely anticipated criminal charges come after SAC Capital and CR Intrinsic, another Cohen affiliate, earlier this year agreed to pay the Securities and Exchange Commission a record $615 million in penalties to resolve civil insider trading charges against the firms.

Additionally, the SEC on July 19 filed civil administrative charges against Cohen himself, alleging that he "failed reasonably to supervise" two senior portfolio managers who themselves have been been hit with insider trading charges and are awaiting trial.

The civil case fell short of accusing Cohen, a hedge fund giant and one of the nation's richest people, with similar insider trading allegations. But an SEC victory could bar him from handling investor funds, a penalty that could force him to shut down portfolios that until recently investor withdrawals totaled more than $15 billion.

In the civil case, the SEC alleged that Cohen received "highly suspicious" non-public information in 2008 from top financial lieutenants Mathew Martoma and Michael Steinberg, who have pleaded not guilty in their cases. The allegations involved stock trading in pharmaceutical firms Elan and Wyeth, as well as in computer giant Dell.

Instead of heeding his supervisory responsibility to investigate, the SEC charged that Cohen "ignored red flags" and allowed trading on the information to proceed, thereby earning profits and avoiding losses totaling more than $275 million.

Disputing the charges, attorneys for Cohen have said he "had every reason to believe" that one of the portfolio managers relied only on public information and that the hedge fund founder didn't read a crucial email sent by the other manager.

"Steven Cohen did nothing wrong, and any fair review of the evidence will show that the SEC's charges are unfounded," his lawyers said.

The civil case against Cohen is scheduled to begin with an Aug. 26 hearing before SEC Chief Administrative Law Judge Brenda Murray.

John Coffee, a Columbia University law school professor expert in securities law last week said it's relatively rare for the SEC to bring such a case as an administrative proceeding, rather than in federal court.

The move potentially gives the SEC "home court advantage," said Coffee, because the rules of evidence are somewhat less strict than in federal court and could enable the agency to introduce more hearsay evidence.

Kredit: www.nst.com.my
 

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