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	<title>Business 360</title>
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	<link>http://business.blogs.cnn.com</link>
	<description>Get to grips with the issues affecting world business</description>
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		<title>Business 360</title>
		<link>http://business.blogs.cnn.com</link>
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		<item>
		<title>The early years: Are Millennials born with ambition?</title>
		<link>http://business.blogs.cnn.com/2012/05/16/the-early-years-are-millennials-born-with-ambition/</link>
		<comments>http://business.blogs.cnn.com/2012/05/16/the-early-years-are-millennials-born-with-ambition/#comments</comments>
		<pubDate>Wed, 16 May 2012 09:32:52 +0000</pubDate>
		<dc:creator>irenechapple</dc:creator>
				<category><![CDATA[Quest Means Business]]></category>
		<category><![CDATA[The Millennials]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14323</guid>
		<description><![CDATA[Editor’s note: The Millennials are a generation that are constantly plugged in and moving fast to make their mark on...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14323&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<div id="cnn-video-1337190787-1" class="cnn_video cnn_video_medium"><a href="http://edition.cnn.com/video/#/video/business/2012/05/16/qmb-millennials-episode-eleven.cnn">Click to watch video</a></div>
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<p><strong>Editor’s note: The Millennials are a generation that are constantly plugged in and moving fast to make their mark on the world. CNN’s Quest Means Business is tracking four of them.</strong></p>
<p><strong>(CNN) &#8211;</strong> In episode 11 of this week&#039;s Millennials, we look back at the earlier years.</p>
<p>We begin in London with Joe Braidwood. As a chief marketing officer, Joe has achieved more than most people at 27 years of age.</p>
<p>But is his success generational or is it down to great parenting?</p>
<p>We speak to his father and look back at some of Joe’s home videos to find out whether he’s Millennial from birth.</p>
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			<media:title type="html">irenechapple</media:title>
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	</item>
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		<title>Ad war: Google versus Facebook</title>
		<link>http://business.blogs.cnn.com/2012/05/16/ad-war-google-versus-facebook/</link>
		<comments>http://business.blogs.cnn.com/2012/05/16/ad-war-google-versus-facebook/#comments</comments>
		<pubDate>Wed, 16 May 2012 06:00:40 +0000</pubDate>
		<dc:creator>kevinvoigt</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[CNN]]></category>
		<category><![CDATA[Kevin Voigt]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14318</guid>
		<description><![CDATA[(CNN) – Which platform is better to advertise on, Google or Facebook? On Tuesday, General Motors announced it will stop...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14318&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><strong>(CNN) –</strong> Which platform is better to advertise on, Google or Facebook?</p>
<p>On Tuesday, General Motors announced <a href="http://money.cnn.com/2012/05/15/autos/gm_facebook/index.htm">it will stop</a> paid advertising on Facebook. &#034;This happens as a regular course of business and it&#039;s not unusual for us to move things around various media outlets,&#034; the company said in a statement. But coming the week Facebook has its <a href="http://money.cnn.com/2012/05/15/technology/facebook-raises-price-range/index.htm">initial public offering</a>, the announcement is raising more than a few eyebrows and begs the question:</p>
<p>Is Facebook really worth $100 billion?</p>
<p>WordStream, a U.S.-based search engine marketing company, <a href="http://www.wordstream.com/blog/ws/2012/05/15/ipo-facebook-vs-google-display-advertising">released a study</a> Tuesday comparing the advertising influence of display ads on Google versus ads on Facebook. The results: While Facebook is good, Google is better.<br />
<span id="more-14318"></span><br />
Both companies have a large advertising reach, but Google Display Network reaches 80% of global online readers versus Facebook’s  reach of 51%.</p>
<p>“Facebook&#039;s advertising growth has been strong – but it hasn’t kept pace with growth in its user base,” WordStream’s Larry Kim wrote in his <a href="http://www.wordstream.com/blog/ws-1">blog</a>.</p>
<p>Facebook’s click-through rate (CTR) on ads is less than 0.05%, according to WordStream’s calculations, “just half the industry average for banner ads,” Kim wrote. “Why? It may be Facebook’s relatively slim offerings in terms of ad formats and targeting options.”</p>
<p>Facebook currently has only two options for advertisers – a standard ad and sponsored stories. “This is paltry compared to Google’s display network ad format options: text ads, image ads, flash-based image ads, in-video ads, as well as ads for mobile web and mobile games,” Kim wrote.</p>
<p>“Given its impressive global reach, Facebook has the potential to be as much of an advertising behemoth as Google,” Kim said. “But the question remains – does Mr. Zuckerberg even want Facebook to be an advertising-based company? In his 2,500+ word letter to shareholders, he only mentioned advertising once.”</p>
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			<media:title type="html">kevinvoigt</media:title>
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		<title>Opinion: Why JPMorgan gets away with bad bets</title>
		<link>http://business.blogs.cnn.com/2012/05/15/opinion-why-jpmorgan-gets-away-with-bad-bets/</link>
		<comments>http://business.blogs.cnn.com/2012/05/15/opinion-why-jpmorgan-gets-away-with-bad-bets/#comments</comments>
		<pubDate>Tue, 15 May 2012 14:08:28 +0000</pubDate>
		<dc:creator>Nick Wrenn</dc:creator>
				<category><![CDATA[Business]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14311</guid>
		<description><![CDATA[Economics professor and former financial regulator William K. Black calls JPMorgan a &#034;dangerous institution&#034; which should not be allowed to...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14311&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Economics professor and former financial regulator William K. Black calls JPMorgan a &#034;dangerous institution&#034; which should not be allowed to exisit. But because it is a significant donor to both the U.S. Democratic and Republican parties, it has avoided reform.</p>
<p>He says: &#034;It is a travesty for JPMorgan to be able to create an additional $2 billion in losses through investments that are supposed to be allowed only if they reduce losses. The government must revise the regulations and reject JPMorgan&#039;s absurd treatment of anti-hedges as hedges.&#034;</p>
<p><a href="http://edition.cnn.com/2012/05/14/opinion/black-jpmorgan-banks/index.html?hpt=hp_c3">Read his Opinion column in full</a></p>
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		<media:content url="" medium="image">
			<media:title type="html">VP, CNN International Digital Services</media:title>
		</media:content>
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		<item>
		<title>Waste not, want not: How Dhaka gets growth from trash</title>
		<link>http://business.blogs.cnn.com/2012/05/15/waste-not-want-not/</link>
		<comments>http://business.blogs.cnn.com/2012/05/15/waste-not-want-not/#comments</comments>
		<pubDate>Tue, 15 May 2012 08:57:46 +0000</pubDate>
		<dc:creator>irenechapple</dc:creator>
				<category><![CDATA[Future Cities]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14306</guid>
		<description><![CDATA[(CNN) &#8211; Every day Dhaka’s 15 million residents produce 5,000 tons of waste. Almost half that waste is uncollected, and...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14306&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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<p><strong>(CNN) &#8211;</strong> Every day Dhaka’s 15 million residents produce 5,000 tons of waste. Almost half that waste is uncollected, and adds to problems with pollution, disease and carbon emissions.</p>
<p>Landfill sites such as Amin Bazar are dumping grounds for mountains of waste. More than one third of the uncollected rubbish finds its way into different water bodies, open spaces and drains, causing environmental damage.</p>
<p>In 1995 two urban planners decided that Bangladesh needed better waste management.</p>
<p>Around 70% of the city’s waste is organic and, in their business model, this can be converted into opportunity.</p>
<p>Trucks roll across the city collecting organic waste, from households and markets, taking it on to a large composting site. The compost is then used as fertiliser.</p>
<p>Bangladesh’s government has replicated the model in 14 other cities and towns since 2002. Other countries have also followed suit, including Vietnam, Pakistan and Nepal.</p>
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			<media:title type="html">irenechapple</media:title>
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		<title>How much is Manchester City&#039;s victory worth for Abu Dhabi?</title>
		<link>http://business.blogs.cnn.com/2012/05/14/does-manchester-citys-victory-pay-off-for-abu-dhabi/</link>
		<comments>http://business.blogs.cnn.com/2012/05/14/does-manchester-citys-victory-pay-off-for-abu-dhabi/#comments</comments>
		<pubDate>Mon, 14 May 2012 19:04:39 +0000</pubDate>
		<dc:creator>Nick Wrenn</dc:creator>
				<category><![CDATA[Business]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14292</guid>
		<description><![CDATA[The title was won at the Etihad Stadium. The players wore shirts emblazoned with the Etihad Airways logo - the...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14292&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>The title was won at the Etihad Stadium. The players wore shirts emblazoned with the Etihad Airways logo - the Abu Dhabi-based airline. And the match was watched by an estimated TV audience of 4.7 billion people.</p>
<p>It was, in short, the brightest indicator yet of the Middle East&#039;s growing influence within European football.</p>
<p>So how much did Manchester City&#039;s dramatic victory on Sunday, that snatched the English Premier League championship from bitter rivals Mancester United, pay back the hundreds of millions of dollars invested by Sheikh Mansour bin Zayed bin Sultan Al Nahyan?</p>
<p><strong>Caroline Cheese </strong>examines the numbers and looks at the Gulf&#039;s growing influence in &#034;the beautiful game&#034;.</p>
<p><a href="http://edition.cnn.com/2012/05/14/sport/football/football-manchester-city-middle-east/index.html?hpt=hp_c2">Full story</a></p>
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			<media:title type="html">VP, CNN International Digital Services</media:title>
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		<title>How four minutes of live TV will pump cash into English Premier League</title>
		<link>http://business.blogs.cnn.com/2012/05/14/how-four-minutes-of-live-tv-will-pump-cash-into-english-premier-league/</link>
		<comments>http://business.blogs.cnn.com/2012/05/14/how-four-minutes-of-live-tv-will-pump-cash-into-english-premier-league/#comments</comments>
		<pubDate>Mon, 14 May 2012 18:35:25 +0000</pubDate>
		<dc:creator>cnni blog producer</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[CNN Correspondent Jim Boulden]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14277</guid>
		<description><![CDATA[It&#039;s not often you witness a valuable commodity become even more valuable, live on television. But that&#039;s what happened on...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14277&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>It&#039;s not often you witness a valuable commodity become even more valuable, live on television.</p>
<p>But that&#039;s what happened on Sunday afternoon when the English Premier League title was decided in the 94th minute of extra time in Manchester.</p>
<p>The league itself was also the big winner when the title went to Manchester&#039;s blue side.</p>
<p>It&#039;s come a long way since 22 teams formed the Premier League in the summer of 1992, with the backing of the fledgling satellite channel, BSkyB, controlled by Rupert Murdoch.</p>
<p>The first TV contracts were modest, but now the league gets more then $3bn over three years, just in the UK for both live and taped rights.</p>
<p>It&#039;s not an exaggeration to say many people, and pubs, pay for the Sky satellite package in order to watch top-flight football (I personally pay just over $100 a month when you add in ESPN to get the remaining Premier League matches, and baseball of course). Equally, if Sky were to lose the rights to the football league it helped make the most watched in the world, many people would drop Sky. And Sky knows it.</p>
<p>But it did take a decade for the world to wake up to the value of the Premier League. That all changed with a certain Russian billionaire.</p>
<p>Critics and disgruntled fans were up in arms when Roman Abramovich bought Chelsea in 2003 and pumped it full of stars (and reportedly spent more than $100 million JUST on numerous managers). And they won the league. Needless to say few Chelsea supporters could stay angry for long, if they ever were, with silverware coming in the door.</p>
<p>Then there was the take-over of Manchester United from the American Glazer family in 2005. Many United fans still haven&#039;t gotten over that, even though the growing debt has not stopped the side from competing more years for the title, and in Europe.</p>
<p>Not long after Manchester City was taken over in 2007 by controversial former Thai Prime Minister Thaksin Shinawatra. His troubles opened the door to a new bid from the Gulf.</p>
<p>Since its purchase in 2008, the Abu Dhabi group has pumped more than $1 billion into Manchester City, so its not a surprise they were battling for the top. City has surpassed the Russian-fueled Chelsea side, already showing its age, and the American-debt ladened Manchester United side who continue to impress, whomsoever they buy or sell. Its other rival, Liverpool, has had a number of American owners in the past five years and only continues to slide down the table. Liverpool spent more money on a failed stadium plan than it did on quality players.</p>
<p>But you can&#039;t underestimate where City has come from in the past decade and you can&#039;t dismiss this win as a one-off title, like Blackburn Rovers.</p>
<p>In 1999, Manchester City was playing the mighty Gillingham in the play-offs for promotion from England&#039;s old third division (now called League One).</p>
<p>City was an also-ran club that slowly climbed back up the table, but it had one thing that could be nearly priceless: the name Manchester. When the Abu Dhabi group was looking to buy a club, and City became embroiled in the scandal surrounding its then owner, former Thai Prime Minister Thaksin Shinawatra, the name Manchester was surely a draw. It would be recognized around the world, thanks to its Red neighbors (the less noisy neighbors).</p>
<p>Manchester sounds better then say, Scunthorpe or Hull or Blackpool or even Port Vale, a team named for a non-existent place.</p>
<p>Now, the Premier League is ready to tender a new contract to air live matches in the UK from 2013-2016. The current deal for live rights in the UK is worth about $2.8bn to the league and the 20 teams that now make up the top tier. Sky is not allowed to gobble up all the rights, thanks to a European Commission competition ruling. While Sky and ESPN will certainly bid for the rights, but so could the likes of Qatari-based Al Jazeera, if you believe the rumors. I&#039;m not sure Sky is going to be outbid, but it could mean the world&#039;s most valuable football league will only get more valuable. Manchester City has seen to that.</p>
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			<media:title type="html">cnni blog producer</media:title>
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		<title>Italian style graces Abu Dhabi mosque</title>
		<link>http://business.blogs.cnn.com/2012/05/11/italian-mosaics-grace-abu-dhabi-mosque/</link>
		<comments>http://business.blogs.cnn.com/2012/05/11/italian-mosaics-grace-abu-dhabi-mosque/#comments</comments>
		<pubDate>Fri, 11 May 2012 10:02:02 +0000</pubDate>
		<dc:creator>CNNI Blog Producer</dc:creator>
				<category><![CDATA[Along the silk road]]></category>
		<category><![CDATA[Business]]></category>
		<category><![CDATA[Global Exchange]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14260</guid>
		<description><![CDATA[Abu Dhabi (CNN) - An Abu Dhabi mosque is being adorned with beautiful new mosaics - thanks to some traditional...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14260&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<div id="cnn-video-1337190787-3" class="cnn_video cnn_video_medium"><a href="http://edition.cnn.com/video/#/video/business/2012/05/10/atsr-defterios-abu-dhabi-mosque.cnn">Click to watch video</a></div>
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<p><strong>Abu Dhabi (CNN)</strong> - An Abu Dhabi mosque is being adorned with beautiful new mosaics - thanks to some traditional Italian craftsmanship.</p>
<p>The Sheikh Zayed Grand Mosque is first and foremost a place of worship, but in less than five years it has become synonymous with the Emirate of Abu Dhabi.</p>
<p>Enrico Fantini is a fourth-generation Italian mosaic artisan who was recruited to work on the vast exterior ground and key parts of the grand interior. “We are very proud to have an Italian tradition - the mosaic started in the Byzantine world, the Roman world,” Fantini told CNN’s John Defterios.</p>
<p><span id="more-14260"></span></p>
<p>That tradition is on vivid display in the flowers and fauna of the courtyard, made with marble of all shades, sourced from up to 15 countries, including Turkey, Italy and India. Each month, more than 300,000 visitors from around the world come here to take in what Fantini himself says is something unique.</p>
<p>“It is not a traditional mosque, it is modern, it is open - a completely different idea,” said Fantini.</p>
<p>His company was started by his great grandfather in 1904. “Fantini Mosaici” made its name discretely, working behind the scenes for royal families of the Middle East, including for the Emir of Qatar, the King of Morocco and members of the Saudi Royal family. A son of the late founder of the United Arab Emirates, for whom the Grand Mosque is named, urged Fantini to ply his trade on a much grander scale.</p>
<p>Fantini Mosaici has built a reputation in the Middle East and has trained craftsmen from South Asia to bring to its workshop in Abu Dhabi. Under a United Nations development program, the company trained Pakistani nationals from Lahore and then brought them to the Emirate. Today, they sit side by side with other South-Asian craftsmen after word spread of expansion.</p>
<p>It is labor-intensive, painstaking, detailed employment - cutting marble, designing panels and working the inlay. Fantini employs 90 people in the Emirate, nearly double the team back home in Italy. Some of their work will stay in the region, while some is exported back to Europe.</p>
<p>Another huge project for the company, the Palazzo Versace complex, is underway in neighboring Dubai. It’s another grand opera requiring the “Made-in-Italy” brand keeping alive a trade that stretches back four generations, and a craft that stretches back for millennia.</p>
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			<media:title type="html">CNNI Blog Producer</media:title>
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		<title>Holy profits, Batman! Comic collectors clean up</title>
		<link>http://business.blogs.cnn.com/2012/05/11/holy-profits-batman-comic-collectors-clean-up/</link>
		<comments>http://business.blogs.cnn.com/2012/05/11/holy-profits-batman-comic-collectors-clean-up/#comments</comments>
		<pubDate>Fri, 11 May 2012 08:52:00 +0000</pubDate>
		<dc:creator>kevinvoigt</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Investment]]></category>
		<category><![CDATA[Alexis Lai]]></category>
		<category><![CDATA[CNN]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14266</guid>
		<description><![CDATA[(CNN) – Dust off your old comic books: a collector has sold a near-mint copy of the first issue of...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14266&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><strong>(CNN) –</strong> Dust off your old comic books: a collector has <a title="http://www.ha.com/c/press-release.zx?releaseId=2202" href="http://www.ha.com/c/press-release.zx?releaseId=2202">sold a near-mint copy</a> of the first issue of the Batman comic book for a whopping $850,000.</p>
<p>The seller reaped a stunning return on investment, after paying $315,000 for the No. 1 issue two years ago, according to the auctioneer.  The comic book was priced a mere 10 cents when it was published in 1940.</p>
<p>The sale to an investor partnership was arranged privately by Dallas-based collectibles auction house, Heritage Auctions.  The identities of the buyer and sellers have not been revealed.</p>
<p>Playing on nostalgia, vintage comic book sales have been on the rise in recent years.  <a title="http://www.ha.com/c/press-release.zx?releaseId=2165" href="http://www.ha.com/c/press-release.zx?releaseId=2165">A rare comic book collection</a> reaped Heritage Auctions over $8.9 million in February, breaking the company’s own world record of $6.03 million from May 2011.  According to Heritage, comic auctions grossed no more than $2.2 million when the company began auctioning comics over a decade ago.<br />
<span id="more-14266"></span><br />
During the February auction, a copy of the Batman No. 1 issue was sold for $274,850 and a copy of Detective Comics No. 27, in which the Batman character debuted, sold for $522,813.</p>
<p>Popular comic book characters have also made big cash on the silver screen.  The last decade has seen a slew of comic-based blockbusters, including Batman, Spiderman, X-men, Hellboy, and The Fantastic Four.  The Avengers, which made their comic book debut in 1963, grossed $207.40 million last weekend when it opened, breaking the all-time <a href="http://www.cnn.com/2012/05/06/showbiz/avengers-breaks-record/index.html">weekend record</a> set by Harry Potter and the Deathly Hallow Part II.</p>
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			<media:title type="html">kevinvoigt</media:title>
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		<title>JPMorgan loss: Ghost of the credit crisis</title>
		<link>http://business.blogs.cnn.com/2012/05/11/jpmorgan-loss-ghost-of-the-credit-crisis/</link>
		<comments>http://business.blogs.cnn.com/2012/05/11/jpmorgan-loss-ghost-of-the-credit-crisis/#comments</comments>
		<pubDate>Fri, 11 May 2012 04:54:00 +0000</pubDate>
		<dc:creator>kevinvoigt</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Financial crisis]]></category>
		<category><![CDATA[CNN.com business producer]]></category>
		<category><![CDATA[Kevin Voigt]]></category>

		<guid isPermaLink="false">http://business.blogs.cnn.com/?p=14249</guid>
		<description><![CDATA[(CNN) – JPMorgan Chase CEO Jamie Dimon shocked Wall Street just after the market closed Thursday with news that the...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14249&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><strong>(CNN) –</strong> JPMorgan Chase CEO Jamie Dimon <a title="http://money.cnn.com/2012/05/10/news/companies/jp-morgan-losses/index.htm" href="http://money.cnn.com/2012/05/10/news/companies/jp-morgan-losses/index.htm">shocked Wall Street</a> just after the market closed Thursday with news that the company had lost $2 billion since April 1 on trades in credit default swaps.</p>
<p>Sound familiar? It should. Credit default swaps based on housing mortgages created the tinder that was ignited by rising home defaults to create the conflagration of the 2008 financial crisis.</p>
<p>Trading in derivatives such as credit default swaps were designed to hedge against risk. But as we know, banks and other market players used these tools to create products that seemed to take the danger out of risky bets and reaped huge rewards - right up until the moment they didn’t. Banks and other businesses were stuck on the wrong side of the trade, trapped with a mountain of debt they couldn’t pay.</p>
<p>Speaking on a Thursday conference call – which the  Financial Times’ <a title="http://ftalphaville.ft.com/blog/2012/05/10/995211/jpmorgan-whale-harpooned/" href="http://ftalphaville.ft.com/blog/2012/05/10/995211/jpmorgan-whale-harpooned/">Alphaville called</a> “the most excruciating bank conference call we’ve ever heard” – Dimon said JPMorgan&#039;s losses stemmed from trades designed to hedge against risk, but those trades went awry due to &#034;errors,&#034; &#034;sloppiness&#034; and &#034;bad judgment.&#034; It doesn’t help that, just a month ago, Dimon decried the build-up of credit default swaps at JPMorgan’s London office, <a title="http://online.wsj.com/article/SB10001424052702303299604577326031119412436.html" href="http://online.wsj.com/article/SB10001424052702303299604577326031119412436.html">first reported</a> by the Wall Street Journal, as a “<a title="http://articles.marketwatch.com/2012-04-13/industries/31335210_1_london-whale-tempest-jamie-dimon" href="http://articles.marketwatch.com/2012-04-13/industries/31335210_1_london-whale-tempest-jamie-dimon">tempest in a teapot</a>.”<br />
<span id="more-14249"></span><br />
The losses of the past six weeks were mitigated by successful hedges that played out, Dimon said, but the bank expects its  losses to exceed $800 million by the end of this quarter. And it stands to lose a further $1 billion more due to market volatility.</p>
<p>Still, some nagging questions remain, such as whether the losses were contained only to JPMorgan and not any other major banks.</p>
<p>As CNNMoney reports, CLSA analyst Mike Mayo pushed Dimon on whether he thought other banks could be in the same situation. &#034;I don&#039;t know,&#034; Dimon sighed. &#034;Just because we&#039;re stupid doesn&#039;t mean everyone else was.&#034;</p>
<p>Not a comforting response, given the lemming-like cliff dive of the big investment banks in the run-up to the credit crisis.</p>
<p>Mayo was most discomfited by the fact these lapses in judgment occurred inside the JPMorgan’s Chief Investment Office, or CIO, which manages $375 billion in securities. “Here is a key point: this loss occurred in a risk-mitigation unit and not a risk-taking one,” Mayo wrote in a note to investors. “The bigger issue is who was watching the CIO office? We think this raises issues about checks and balances at a $2tn bank that has performed better than peers.”</p>
<p>Mayo told CNN’s Katy Byron: &#034;It&#039;s like if you say to your wife, &#039;Honey I went out and bought insurance on a house last month,’ and you come back a month later and say you lost $100,000 on the insurance policy.&#034;</p>
<p>Mayo said it’s clear the losses weren’t the result of one bad trade, but a break down on several levels. &#034;(It) raises the issue &#8211; are these big banks too big to manage? There should be controls, overseers, checks and balances,” he said.</p>
<p>And the loss raises the specter that lessons from the credit crisis have yet to be learned. &#034;Our financial system is still not under control,” Mayo said. “The problems that led to the financial crisis are brought up again when something like this happens.&#034;</p>
<p>Dimon said <a title="http://ftalphaville.ft.com/blog/2012/05/10/995211/jpmorgan-whale-harpooned/" href="http://ftalphaville.ft.com/blog/2012/05/10/995211/jpmorgan-whale-harpooned/">new risk modeling tools</a> brought out in the first quarter have been shelved as a result of the losses. The loss comes at a time when banks are <a href="http://www.bloomberg.com/news/2012-05-10/volcker-rule-proponents-say-jpmorgan-loss-bolsters-case.html">fighting the Volcker rule</a>, due to come into force on July 21, which will curtail bank’s ability to trade with their own money.</p>
<p>Meanwhile, as the <a title="http://www.economist.com/blogs/freeexchange/2012/04/derivatives-regulation" href="http://www.economist.com/blogs/freeexchange/2012/04/derivatives-regulation">Economist reported</a> last month, efforts to better regulate derivatives trading have been half-hearted and ill-funded.</p>
<p>JPMorgan’s loss suggests that derivatives trading remains a hazardous business, a “risk management” tool that has yet to be tamed.</p>
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			<media:title type="html">kevinvoigt</media:title>
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		<title>Toyota predicts bright future after profit slump</title>
		<link>http://business.blogs.cnn.com/2012/05/09/toyota-predicts-bright-future-after-profit-slump/</link>
		<comments>http://business.blogs.cnn.com/2012/05/09/toyota-predicts-bright-future-after-profit-slump/#comments</comments>
		<pubDate>Wed, 09 May 2012 10:30:36 +0000</pubDate>
		<dc:creator>CNNI Blog Producer</dc:creator>
				<category><![CDATA[Auto industry]]></category>
		<category><![CDATA[Japan]]></category>
		<category><![CDATA[CNN Producer]]></category>
		<category><![CDATA[Paul Armstrong]]></category>

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		<description><![CDATA[Toyota says profits for the last year stalled due to a strong yen and the effects of the devastating earthquake...<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.blogs.cnn.com&#038;blog=3061916&#038;post=14242&#038;subd=cnnibusiness&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Toyota says profits for the last year stalled due to a strong yen and the effects of the devastating earthquake and tsunami on its supply chain.</p>
<p>In <a href="http://pressroom.toyota.com/releases/">a statement Wednesday</a>, the Japanese automaker revealed net profit for the year ending March 31 had dropped by 30.5% to 283.56 billion yen ($3.56 billion).<span id="more-14242"></span></p>
<p>The company also ceded its number one spot in the global carmakers&#039; league last year, as the twin disasters in Japan on March 11 followed by flooding in Thailand a few months later curtailed supplies of auto parts and reduced its output by about 400,000 vehicles, the <a href="http://www.ft.com/intl/cms/s/0/00930a32-9990-11e1-948a-00144feabdc0.html#axzz1uMjMAk3e">Financial Times</a> reported.</p>
<p>But Toyota predicted a sharp rebound in fortunes for 2013 off the back of strong car and truck sales, with an expected net income of 760 billion yen ($9.5 billion).</p>
<p>“Certainly the last fiscal year was extremely challenging due to the natural disasters in Japan and Thailand, plus the unprecedented strength of the yen,” said Toyota President Akio Toyoda.</p>
<p>“But, thanks to the concerted efforts of our employees, suppliers, and dealers, we were able to recover production and sales faster than anticipated and achieved a strong result.</p>
<p>“I would like to express my heartfelt gratitude for their efforts to improve our business structure. Thanks to their hard work, we were able to remain profitable, even in such a challenging environment. And special thanks, of course, go to our customers, who continue to demonstrate their loyalty in choosing Toyota and Lexus vehicles.”</p>
<p>Last month fellow Japanese automaker, Honda, reported a 61% jump in its net profit as it continued its own recovery from last year&#039;s national crisis. It also expects record global sales of 4.3 million vehicles for this fiscal year.</p>
<p>Analysts believe Nissan will join its local rivals in forecasting a positive profit outlook when it releases first quarter results and its projection for the year on May 11.</p>
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