Tech jitters, Ukraine weigh on world stocks

TOKYO — Jitters over the valuations of technology companies pulled stock prices lower from Tokyo to London on Wednesday.

European shares got off to lackluster start, with Britain's FTSE 100 down 0.3 percent to 6,776.65. Germany's DAX edged down 0.1 percent to 9,458.63 and the CAC-40 in France slipped 0.1 percent to 4,422.77.

U.S. markets were poised for a slow start after sharp declines the day before, with both Dow Jones and S&P 500 futures little changed.

Sinking Internet company shares, led by an 18 percent plunge in Twitter's share price Tuesday, added to negative sentiment from tensions in Ukraine, where pro-Russian militants are clashing with military forces in the country's unstable east.

In Asia, the Nikkei 225 stock index sank 2.9 percent to 14,033.45 as the U.S. dollar's relative weakness against the Japanese yen hit exporter shares. It was the first day of trading in Japan after a long weekend.

Softbank tumbled 5.1 percent in Tokyo after Chinese e-commerce giant Alibaba released some details of a planned U.S. initial public offering that analysts say could raise up to $20 billion. Softbank owns 36.7 percent of Alibaba.

Though the IPO is expected to net Softbank handsome returns, the recent slump in technology shares has shaken confidence.

"Whether the market reaction and the IPO valuation will be high or not is still the major concern," said Linus Yip, a strategist for First Shanghai Securities in Hong Kong. "The listing of Alibaba right now, may not be such good timing."

Elsewhere in Asia, South Korea's Kospi lost 1 percent to 1,939.88 and Hong Kong's Hang Seng shed 1.1 percent to 21,746.26.

Shares in Australia, Singapore, China, India and Taiwan fell while Indonesian and New Zealand shares edged higher.

In other markets, benchmark U.S. crude for June delivery was up 95 cents to $100.45 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 2 cents to close at $99.50 on Tuesday.

In currency trading, the euro slipped to $1.3919 versus $1.3928 late Wednesday. The dollar fell to 101.55 yen from 101.68 yen.

18.38 | 0 komentar | Read More

Adidas may jettison Rockport

Germany's Adidas Group is entertaining walking orders for The Rockport Co.

The athletic footwear company acknowledged yesterday that it has hired Guggenheim Partners to explore a possible sale of the 43-year-old, Canton-based shoe brand known for merging style with comfort and "walkability."

"Rockport is not the strategic asset for us in the group," CEO Herbert Hainer said in an analyst call. "Nevertheless, we worked hard to improve the products, improve the distribution and, therefore, we are growing the Rockport business last year by 6 percent. It will grow again this year, and I think this is one of the most attractive brands out there."

Rockport was founded in Marlboro in 1971 as a walking shoe company and bought by Reebok International for $118.5 million in 1986. Adidas purchased Reebok in 2006.

Rockport produced
 8 million pairs of shoes in 2013 and had net sales of $402.48 million, according to Adidas Group's annual report.

The brand has about 120 employees in Canton — its global and North American headquarters — and more than 700 globally. All general functions of running the business, including men's and women's product development, design, sourcing, sales, operations, marketing and finance, are based in Canton, spokeswoman Janet Ries said.

Rockport, since it lacks an athletic focus, has never fit into the Adidas stable of brands, said analyst Matt Powell of Princeton Retail Analysis. "If, as (Adidas) says, there are interested parties, it is the right time to explore options," he said. "Given the company's struggles elsewhere, it makes sense to sell."

The dress/casual footwear segment has suffered with the dominance of athletic shoes, according to Powell, and Rockport's performance has been in the middle of the pack.

"I would assume that the most likely buyer would be strategic, with an eye to taking the brand down-market," Powell said.

Rockport's first-quarter revenue, reported yesterday by Adidas, fell 12 percent to $73.8 million.

18.38 | 0 komentar | Read More

Two top NECN news managers out

New England Cable News said two top news managers left the station yesterday.

No details were provided about why news director Nannette Hobson and assistant news director Bob Keating will no longer be employed there.

"We will immediately begin a nationwide search for a new news director for NECN," general manager Michael St. Peters said in an email to employees.

He said "other news managers" would fill in until replacements are hired.

A statement yesterday from NBC Universal, which owns NECN, said Hobson and Keating were "leaving NECN effective today.

"We are grateful for their contributions to the station and wish them all the best in their future endeavors."

Keating joined NECN in 2001 and became assistant news director in 2008. Hobson was hired by NECN in 2012. Hobson and Keating could not be reached for comment.

WBZ-TV fired news director John Virrelli in March, reportedly over poor ratings. NECN's ratings were not available last night.

18.38 | 0 komentar | Read More

Siemens CEO shakes up company to raise profits

FRANKFURT, Germany — German industrial equipment maker Siemens AG is launching a sweeping restructuring to raise profits and better compete with peers such as General Electric.

CEO Joe Kaeser is eliminating the sprawling company's four broad sectors overseeing its businesses, and will trim those business divisions from 16 to nine. Each division will get a profit margin target as Siemens aims to focus on fields where it can grow and earn the most.

Cutting out the sector level of management will reduce bureaucracy, cut costs and speed up decisions, the company says. Kaeser took over last year after previous CEO Peter Loescher missed several profit targets.

The revamp comes as Siemens is considering making an offer for the power generating business of France's Alstom, which has already received an offer from General Electric.

Kaeser was to lay out details Wednesday at a news conference in Berlin.

The restructuring announcement comes along with the release of what the company called a mixed earnings performance in the first three months of the year, the company's fiscal second quarter. Net profit rose 12 percent to 1.153 billion euros ($1.61 billion). But revenues fell 2 percent to 17.78 billion euros, and new orders slipped 13 percent to 18.43 billion euros. New orders are key to the company's future profits as it delivers large projects with long lead times.

Siemens, based in Munich, makes heavy machinery such as gas- and wind-powered turbines, trains, and medical imaging devices. Other businesses include factory automation and security equipment. It has 359,000 employees, 243,000 of them outside its German base.

The shakeup included a slew of other measures, including the acquisition of Rolls-Royce's gas turbine and compressor business for 950 million euros ($1.32 billion) as the company focuses on what it hopes will be a profitable sector. Siemens also announced it was forming a joint venture with Mitsubishi Heavy Industries to provide plants, products and services for the iron, steel and aluminum industries.

And it will also hold a stock-market offering for its hearing-aid business.

The company said it plans to increase the number of employee shareholders by 50 percent to over 200,000 to create what Kaeser called "a sustainable ownership culture" at the company.

18.38 | 0 komentar | Read More

The Ticker

Staples to buy PNI

Framingham, Mass.-based Staples said yesterday it will pay roughly $67.5 million for Canada's PNI Digital Media, giving it control of the software maker that powers in-store kiosks to print photographs, calendars and wedding invitations. Staples is paying $1.70 Canadian for each share in PNI, a premium of 32 percent to PNI's close on the Toronto Stock Exchange on Friday.

Coca-Cola to remove drink ingredient

Coca-Cola Co., the world's largest beverage maker, plans to remove brominated vegetable oil from all its U.S. drinks by the end of this year, abandoning an ingredient that has been targeted by food activists.

The additive, known as BVO, will be taken out of both ready-to-drink beverages and fountain-machine formulas, Coca-Cola spokesman Josh Gold said in a statement. BVO is used as a stabilizer in drinks like Powerade, helping prevent ingredients from separating. PepsiCo Inc., after removing BVO from Gatorade last year, said yesterday that it too is replacing the additive in the rest of its lineup.

Comcast opening 200-person center

Comcast is expected to employ about 200 people at a new customer service center by the end of the year in Hudson, N.H. The center, located at the former home of Presstek, a printing equipment company, can employ up to 600 agents. Employees will provide support for a region serving 1.6 million customers in New Hampshire, Maine and eastern Massachusetts. Comcast will start advertising and posting new positions this month.

Stocks higher, with Apple over $600

U.S. stocks ended slightly higher as data showed strength in the services sector and Apple shares rose above $600 for the first time since late 2012. The Institute for Supply Management's services sector index hit the fastest pace in eight months in April, topping expectations. It was the latest report to offer upbeat news on the economy after an unusually harsh winter.

TODAY

 Commerce Department releases international trade data for March.

TOMORROW

 Labor Department releases first-quarter productivity data.

 Federal Reserve releases consumer credit data for March.

THE SHUFFLE

Michael R. Hicks has been named senior vice president and chief operating officer of Comprehensive Benefit Administrators, a full-service integrated employee benefits management company in Norwell. Hicks is responsible for the strategic direction and tactical execution of the company, with the primary objective of profitably growing the organization.

18.39 | 0 komentar | Read More

Bowman: Business cards say lot about you

We all meet and exchange cards at meetings, in restaurants, attending industry functions, traveling, at social events. But absently handing someone a card is a missed opportunity.

The everyday practice of business card exchange is time-honored, and honing this demonstrates respect, portrays you as professional and will help set you apart.

The business card itself casts an important "first impression." Consider your business card your ticket in the door and discard any thoughts that the paper card may be becoming obsolete in an increasingly paperless world: The traditional business card is timeless.

Business cards — called "meishi" in Japanese which literally translated means "face" — represents one's "life." Therefore, the quality of paper stock is important, as well as how the card is presented, received, acknowledged and ultimately placed.

The most formal way of presenting a card is by holding it with a thumb on either corner, readable side up or one thumb on one corner. Receive it the same way. Most importantly, acknowledge the card — look at the card, read it, study it, caress it! Look back at the other person and acknowledge their card, title, life.

Place the card someplace respectful — your inner breast pocket or portfolio; do not discard.

If you are serious about doing business in your target country, the same information should be printed in their native language, presented readable side up.

Exchange cards before the meeting as you introduce yourself and shake hands. Align subtly, yet strategically around your portfolio to coincide with seating to access names as you address individuals; using names in conversation is powerful.

As for the look of the card, make sure colors and font are consistent with your firm's mission.

Here are some tips on what not to do:

•    Don't ask a very senior executive for their business card; they won't have one. You should know how to find them and follow up.

•    Don't assume someone wants your card. Ask, "May I offer you my card?" "May I ask for your card?"

•     Never write on a business card in the presence of that person; you are defacing their "life." Ask, "May I write that on the back of your card?"

And if anyone ever asks for your card — even though this is your last card and it is bent, frayed or damaged in any way, toss it. (This suggests you are, too!)

Judith Bowman is an author and president of her own consulting company.

18.39 | 0 komentar | Read More

Target CEO ouster tied to data breach, sales

Target Corp. removed 35-year company veteran Gregg Steinhafel as its CEO yesterday in the wake of last year's disastrous data breach that hit as many as 110 million customers.

Analysts say the abrupt move likely also was triggered by Target's bungled expansion into Canada, soft U.S. sales and poor e‑commerce results. Steinhafel had been CEO since 2008.

Target is the second-largest U.S. discounter behind Wal-Mart, with $71.3 billion in annual sales last year. Its net income dropped 46 percent in the fourth-quarter that included the crucial holiday season after its Dec. 19 breach announcement heavily cut into sales.

"The data breach is a pretty public thing, but Canada was not executed well last year ... and, also, the general U.S. merchandising in the stores hasn't been as crisp or exciting," said Joseph Feldman, a Telsey Advisory Group analyst.

Target posted a $1 billion loss in Canada last year on sales of $1.3 billion.

"On a positive note, this is something that I think investors have been looking for — a change in the top that might help reinvigorate the business," Feldman said.

Target CFO John Mulligan will be interim CEO.

Steinhafel's replacement will need to identify Target's flaws in merchandising, marketing and e-commerce, said Jefferies analyst Daniel Binder. Target's core business has been lackluster for several quarters, he said, and "The latest data … suggests that even if the U.S. business has stabilized post-credit card data breach, the bigger picture for Target isn't seeing an acceptable rate of change."

The timing of Target's announcement suggests the board perhaps had received an unfavorable first-quarter update, according to William Blair analyst Mark Miller. Those results are due to be publicly reported May 21.

18.39 | 0 komentar | Read More

China tightens controls on imports of baby formula

BEIJING — China has tightened controls on imports of infant formula in a move an industry official in New Zealand, a major supplier, said might block some products.

The announcement coincides with an effort by Beijing to build up its dairy industry following a 2008 tainted milk scandal that killed at least six babies and prompted many parents to switch to imported formula.

Only milk products from foreign sources that are registered with the government can be imported, the Administration for Quality Supervision, Inspection and Quarantine said on its website. A list issued by the government showed foreign brands including European units of Abbot Laboratories, Mead Johnson Nutrition Co. and Nestle Group have registered.

An industry group in New Zealand said only six of the country's 13 suppliers were approved. The chairman of the New Zealand Infant Formula Exporters Association said that might result in some shipments to China being blocked.

"We lost a whole lot of ground this morning," said Michael Barnett at a news conference, according to the New Zealand Herald newspaper.

Demand for imported milk soared after the 2008 scandal in which some Chinese supplies were found to contain melamine, a chemical that can cause kidney damage and other injuries. Some suppliers added it to fool protein tests on watered-down supplies.

Suppliers from New Zealand, Australia, Europe and elsewhere took market share from Chinese competitors, setting back the communist government's efforts to build a domestic dairy industry.

The brand at the center of the 2008 scandal, Sanlu, was broken up and tighter quality standards imposed on the industry. However, that has failed to restore the confidence of Chinese parents. Imported brands have such a strong reputation for quality that customers pay up to three times the price of local brands in supermarkets.

In August, regulators fined five foreign milk suppliers and one from Hong Kong a total of $108 million on charges they violated China's anti-monopoly law by setting minimum retail prices for stores.

In the latest effort to build a domestic industry, the city government of Beijing will give 10.8 million yuan ($1.7 million) to a major local brand, Sanyuan Group, to develop "safe and healthy infant milk powder," the newspaper Beijing Youth Daily reported.

Demand for imported formula is so strong that smugglers bring supplies from Hong Kong, Australia and elsewhere. That has prompted Hong Kong and some other markets to limit purchases to ensure local customers have adequate supplies.

18.39 | 0 komentar | Read More

Vietnam protests Chinese oil rig in disputed sea

HANOI, Vietnam — Vietnam has protested China's decision to send an oil drilling platform to a disputed area of the South China Sea.

The move by Beijing is the latest in a series of provocative actions in the waters that have raised tensions with Southeast Asian countries and drawn the attention of the United States.

According to the China Maritime Safety Administration, the deep see rig CNOOC 981 would be drilling in the South China Sea from May 4 to Aug. 15, and that entering a 3 mile (4.8 kilometers) radius around the area is prohibited.

Vietnam's foreign ministry on Monday said the area was well within Vietnam's exclusive economic zone and China's act was "illegal."

18.38 | 0 komentar | Read More

Startup targets music genre void

A local startup is hoping to break into the lucrative world of hip-hop with its new online portal, KillerBoomBox.com.

The site is run by KillerBoomBox Media Group, a plucky new company that recently won a coveted spot in the Smarter in the City startup accelerator in Dudley Square.

The brainchild of local digital product manager Darius McCroey and veteran music journalist Gregory Valentino Ball, the company now faces the hurdle of convincing investors that enough advertising dollars will come from their business model, which involves producing articles and video documentaries on their website. They also organize and film concerts that highlight urban music. That content — a sampling of which is available on the company's sleekly designed website — is to be repackaged and resold in a variety of different ways, including a forthcoming mobile app, another potential revenue generator.

"The whole idea is to cover urban music, hip-hop and R&B from an intelligent perspective," said Ball, who lives in Dorchester. "We have a passion and that puts us in a better place than some of the competition."

The company already has been selected as runner-up in the Roxbury Innovation Challenge Business Pitch Contest and was a member of the Future Boston Alliance's 
Accelerate Boston Class of 2013, a six-month educational program for entrepreneurs.

Their competition includes Revolt TV, an online magazine and network owned by hip-hop mogul Sean "Diddy" Combs, who just last week predicted that his network would become the ESPN of hip-hop music. These new platforms recognize the vacuum left by MTV and VH1's near-total abandonment of music news coverage — and an estimated 45 million hip-hop consumers nationwide who are waiting for another music media renaissance. There's plenty of room for competition within the $10 billion-a-year hip-hop industry.

Yet corporate America largely has ignored the purchasing power of the hip-hop culture that business empires have sprung from. Moguls such as Dr. Dre, Jay-Z and Diddy are potentially on their way to becoming billionaires in the next decade.

Ball and McCroey say Boston's role in urban music often lives in the shadow of New York City, but there are many up-and-coming artists who originated here and have a fan base ready and waiting. In fact, McCroey envisions being able to use Boston as a test market for new artists.

"Boston is a world-class college town," he said. "So when we take new music to that market, we're testing it for people all over the world."

18.38 | 0 komentar | Read More