Business confidence at three-year high

A KEY business lobby group is concerned about the employment outlook even though the change of federal government has improved overall confidence.

The Australian Chamber of Commerce and Industry's latest survey of investor confidence has found business owners at their most confident since December 2010.

"We are continuing to see this improvement in expectations flying from a new government and a new administration with different economic agenda," chamber chief economist Greg Evans said in Canberra on Monday.

However, improvement in actual trading conditions was more modest.

Expectations for sales, profitability and the investment outlook all grew in the month but expectations for employment deteriorated. The survey's expectation index rose to 59.2 points in the September quarter from 55.7 points in the previous three months, while the actual conditions index crept up to 50.8 points from 49.9 points.

Even so, this was the first time the conditions index had risen above the key 50-point mark, which separates expansion from contraction, since March 2011.

Sales and profitability remained locked at contractionary levels.

Mr Evans said business still faced some fairly stiff economic headwinds in terms of international uncertainty, an Australian economy that is expected to continue to grow below trend and an unemployment rate that could go above six per cent in 2014.

While he believed the full benefit from lower interest rates had yet to be fully locked in, the chances of another rate cut had "probably evaporated".

He said there was still scope for greater competition among banks, particularly in terms of business loans and overdrafts.

Paul Zahra quits as David Jones CEO

PAUL Zahra has resigned as the chief executive of department store giant David Jones.

Mr Zahra is resigning for personal reasons and will step down when a successor is found, the company told the Australian Securities Exchange on Monday after the market had closed.

The man who took over from Mark McInnes in June 2010, following a sexual harassment scandal, will continue working with the full support of the board.

"Whilst much has been achieved and the company is well placed for the future, I believe it's time for a change for me personally," Mr Zahra said in a statement.

David Jones chairman Peter Mason said Mr Zahra would leave the retailer in a solid financial position.

"I thank him for his contribution as CEO," he said in a statement.

"I look forward to working with Paul to ensure a smooth transition of his role to his successor."

US stocks tumble on debt deadline

US stocks have tumbled in early trade with the government having days to resolve the political deadlock over the budget and debt before being forced to default on its bills.

After a weekend that saw no progress in talks between the White House and Republicans, an hour into Monday (local time) trade, the Dow Jones Industrial Average was down 71.70 points (0.47 per cent) at 15,165.41.

The broader S&P 500 lost 7.80 (0.46 per cent) to 1695.40, and the Nasdaq Composite gave up 13.15 (0.35 per cent) to 3778.72.

Investors still showed tentative hopes a deal would be reached by Thursday, the day the US Treasury says it will run out of adequate cash to pay its obligations, including debt service.

Global finance leaders have repeatedly warned a US debt default would generate unfathomable turmoil through the global financial system.

"It would mean massive disruption the world over," International Monetary Fund chief Christine Lagarde said on Sunday.

"And we would be at risk of tipping, yet again, into recession."

Netflix surged nearly three per cent after a report that it was negotiating to place a Netflix app on the set-top boxes of several cable providers.

Chip maker Micron Technology lost another 2.6 per cent after Friday's sharp fall as investors took profits following a sharp run-up.

Facebook shed nearly two per cent, while retail giant Walmart fell 1.2 per cent.

The bond market remained quiet despite the worries about the US budget and debt impasse.

The yield on the 10-year Treasury was marginally higher at 2.69 per cent, while the 30-year was at 3.75 per cent.

How Big Business Could End the Shutdown Overnight

Business leaders have been increasingly vocal in their displeasure with Congress over the ongoing federal shutdown. But so far, there’s one crucial thing they haven’t done: clamp off the campaign contributions that are the lifeblood of American politics.

Members of Congress love to wax patriotic about carrying out the will of the American people, blah blah blah. But money is the thing that really gets their attention. And the business lobby is where the money is. Business groups contribute more than 70% of the donations that fund political campaigns, according to the Center for Responsive Politics. With campaigns costlier than ever, that gives the business lobby considerable leverage in terms of getting their way with politicians.

So if business groups really became determined to end the government shutdown and the standoff over extending the federal debt ceiling, declaring a moratorium on campaign contributions ought to do the trick.

“All it would take are a few of the biggest hitters to pull back,” says Sheila Krumholz, executive director of the Center for Responsive Politics, which monitors campaign donations. “It would be extraordinarily hard to replace that lost money with other money.”

Big business is typically associated with the Republican Party, but business groups give to many candidates. During the 2012 election cycle, about 40% of the donations from business groups went to Democrats, who control the Senate and the White House and therefore oversee many matters business cares about. The rising influence of the Tea Party, and its penchant for disruptive tactics such as shutting down the government, has further weakened ties between business leaders and establishment Republicans (including House Speaker John Boehner) who seem unable to corral their rambunctious party mates.

Business groups often have differing agendas, since the oil industry faces different challenges than pharmaceutical firms, food companies or technology start-ups. But virtually all businesses tend to benefit from predictable government, reliable infrastructure and other factors that have been disrupted by the shutdown. So it’s a unique moment when businesses in general have one huge thing in common: A need to get back to business as usual.

If business groups decided to withhold campaign contributions until Washington resolved its budget issues, they could target Republicans or focus on House Republicans specifically, since the House is holding up a budget resolution. Most analysts think “clean” legislation to reopen the government and extend its borrowing limit--with no strings attached--would pass both the House and the Senate, if a vote was held. But Boehner and other House Republican leaders won’t bring such a measure up for a vote, fearing it might shatter the party’s unity, since some Republicans could join Democrats to pass such a bill against Tea Party opposition.

A moratorium on campaign contributions might not sway Tea Partiers, who tend run against the establishment and don’t usually rely on business donations anyway. But it could persuade other Republicans to break with their Tea Party allies and vote to reopen the government.

A more pragmatic approach, however, might be for business groups to suspend all contributions to Democrats and Republicans alike, taking a “work-it-out, nonpartisan approach,” as Krumholz says. For influential lobbying groups such as the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers, that would reduce the odds of making new enemies while showing seriousness about the need to deal with the budget impasse.

There’s already evidence that the shutdown and the threat of a default on U.S. debt, no matter how small, is hurting business. The shutdown has deflated consumer confidence, foreshadowing a cutback in spending that could cut into revenue at many companies. Financial markets are increasingly volatile, and stocks have been registering wild swings triggered by any sign of breakthrough or stalemate in Washington. On corporate earnings calls, CEOs and CFOs repeatedly express their reluctance to spend and invest amid so much political uncertainty.

If the fiscal follies in Washington do ultimately cause a new recession or other lasting damage, big businesses will survive better than most. Many big companies have stockpiled cash and streamlined operations to deal as effectively as possible with economic shocks. But robust profits depend on a healthy economy, not just on the ability to survive turmoil. The politicians don’t seem to have gotten the message yet.

Blucora buys Balance Financial

TaxACT, a subsidiary of Blucora, is acquiring Bellevue-based Balance Financial,

TaxACT, a subsidiary of Blucora, said Friday that it’s acquiring Bellevue-based Balance Financial, which provides Web-based personal finance management tools.

Terms of the deal were not disclosed.

Bellevue-based Blucora, which used to be called InfoSpace, now operates online search business InfoSpace, as well as tax-preparation software company TaxACT.

Balance Financial’s offerings complement TaxACT’s services that are expanding beyond just tax return filings and into areas such as estate planning, according to a news release from Blucora.

In the future, it is intended that Balance Financial and TaxACT will develop a suite of complementary online tools for each of the two businesses.

Balance Financial co-founder and CEO Devin Miller will continue to lead product development and management of the business, while the company and its 11 employees will continue to operate out of their current office in Bellevue.

TaxACT will remain in Cedar Rapids, Iowa.

Bumps and all, MNsure opens for business (update)

More than three years after passage of the federal Patient Protection and Affordable Care Act, Minnesota’s health insurance exchange opened for business on Tuesday. The MNsure website had more than 100,000 visitors on opening day, and more than 500 people created accounts in just the first hour of operation.

“We are very happy and pleased to be open this afternoon,” said April Todd-Malmlov, MNsure’s executive director. “We have had great interest today.”

But the rollout of the health insurance marketplace, where 1.3 million individuals are eventually expected to obtain coverage, left largely unanswered many questions about how well the system will function. That’s in part because the website where people can shop for coverage didn’t go live until after 3 p.m. on Tuesday.

As anticipated, there were some glitches on startup. At least one key feature of the site — the ability to look up whether a specific medical provider is part of the network for an insurance plan — was not working. In addition, the site initially will not be available from 10 p.m. to 6 a.m. each day in order to allow for ongoing maintenance. There were also problems with account creation owing to server problems.

In addition, Native Americans were advised to wait a week before seeking coverage through the state-run exchange, because the computer system was having problems calculating the correct subsidies available for those individuals. MNsure officials indicated that they’ve identified the problems and expect to have them fixed within a week.

Further complicating the rollout, MNsure officials said they would not begin certifying roughly 5,000 individuals — insurance brokers, nonprofit employees, government workers — who will help people obtain coverage until Wednesday.

“We know there’s been a few bumps in the road both for us and for the federal government as well, but we are tracking those, addressing them and fixing them as they come up,” said Todd-Malmlov.

Officials encouraged

Despite the first day turbulence, proponents of the health insurance exchange expressed satisfaction with MNsure’s much-anticipated debut. In particular, they stressed that Minnesota’s exchange will offer the lowest rates in the country for many groups of individuals.

“So far, so good,” said Rep. Joe Atkins, DFL-Inver Grove Heights, the lead author of exchange legislation in the House. “I’m cautious by nature, but optimistic that it’s going to turn out fine. Obviously it’s a long day and a long week and we’ll see how it all shakes out.”

Sen. Tony Lourey, DFL-Kerrick, the lead author of exchange legislation in the Senate, pointed out that plans purchased through MNsure won’t become active until January 1, so there’s plenty of time to work out any kinks. “I don’t think there’s going to be a lot of people closing the deal in these first few days,” Lourey said. “It’s more kicking the tires.”

But skeptics of the viability of a state-run marketplace expressed concern that it was rolled out prematurely in order to meet an arbitrary deadline set by the federal government. Specifically, they stressed concerns about data security given an earlier breach in which personal information concerning more than 1,500 insurance brokers was inadvertently released.

“I think they were under tremendous pressure to comply with the law instead of doing good project management,” said Sen. Michelle Benson, R-Ham Lake, the ranking minority member of the Health, Human Services and Housing Committee. “We’re going to keep finding stumbles and missteps. I don’t think they did good testing on this.”

No rush to acquire coverage

The Anoka County Human Services Center, in Blaine, has set up a room on the fourth floor where individuals seeking coverage through MNsure can learn about their options in the fledgling marketplace. The county is sharing the space with the Anoka County Community Action Program (ACCAP). County workers will enroll individuals who qualify for public plans (i.e. Medicaid and MinnesotaCare), while those who need to purchase private coverage will be assisted by ACCAP employees.

According to Jerry Vitzthum, Anoka County’s director of economic assistance, they’ve added 17 workers to handle the expected influx of people seeking coverage. But at 1 p.m. on opening day, with the enrollment system not yet functional, no one was seeking insurance.

“If the thing works as it’s eventually supposed to, it could make our lives a lot easier,” Vitzthum said. “If it doesn’t work that way, then it could make more work for us. That’s the only concern we have.”

At Portico Healthnet, a nonprofit group in St. Paul that helps people acquire health insurance, the first day was similarly quiet. The group expects to eventually have 15 workers certified to sign people up for coverage through MNsure, but that process won’t begin until Wednesday.

“We’re finished with training,” said Rebecca Lozano, Portico’s outreach manager. “We are ready to hit the ground running as soon as we get the go ahead from MNsure.”

Portico has hired four additional health outreach workers and is partnering with 10 other social service organizations to spread the word about the availability of coverage. “The four community health workers that were hired specifically to do this work will be constantly rotating through these organizations,” Lozano said. “It’s really serving the client to the best of our ability in partnership with these other organizations.”

Debra Holmgren, Portico’s president, said that the hiccups in the MNsure rollout haven’t caused significant anxiety about how the system will ultimately function. “Historically when something new opens up like this, it’s a lot slower start,” Holmgren said. “I think we’re just ready to get started.”

Tags: ACA, ACCAP, Affordable Care Act, Anoka County Community Action Program, Anoka County Human Services Center, April Todd-Malmlov, Debra Holmgren, Health Human Services and Housing Committee, Jerry Vitzthum, Joe Atkins, Medicaid, Michelle Benson, Minnesota Legislature, MinnesotaCare, MNsure, Obamacare, Patient Protection and Affordable Care Act, Portico Healthnet, Rebecca Lozano, Tony Lourey, U.S. Patient Protection and Affordable Care Act

Switkowski appointed new NBN boss

FORMER Telstra boss Ziggy Switkowski has been appointed executive chairman of the new NBN Co board, Communications Minister Malcolm Turnbull says.

"The project needs new leadership," Mr Turnbull told reporters in Canberra on Thursday.

Dr Switkowski replaces outgoing chairwoman Siobhan McKenna and will be joined by current NBN Co board members Kerry Schott and Alison Lansley.

Ms Schott and Ms Lansley are the only survivors of the former NBN Co board, all of which tendered their resignations after the coalition won the election.

Dr Switkowski was one of the most experienced telecom executives in Australia, Mr Turnbull said.

"Dr Switkowski is an outstanding Australian business leader," he said.

He will be executive chairman until a chief executive officer is appointed.

Mr Turnbull said a strategic review was under way to see exactly what was happening with the NBN project.

"In a nutshell ... what the status of the project is at the moment; how much it is going to cost; and how long it will take to complete it on the current plan or the Labor government's plan of a 93 per cent fibre to the premise model," he said.

It will also look at what savings can be made in cost and time, including if there is an increased use of fibre to the node.

Mr Turnbull said it was important to have a clear and accurate assessment as to where the company was at the moment.

"We don't have a blank sheet of paper," he said.

"Labor has made shocking mistakes. There are billions of dollars that Labor has wasted that we will never be able to recover. This has been a shockingly misconceived, wasteful exercise in public policy."

Mr Turnbull said it was important NBN Co "owned" the project. "In the past this project has been riddled with politics," he said.

"What I've said to the company is I just want the plain, unvarnished facts. We do not want spin or for the company to tell us what they think what we might like to hear."

Good Energy launches 7.25% corporate bond

Good Energy Group plc (“Good Energy” or “the Group”), the AIM quoted renewable electricity supplier, said on Wednesday it had launched its first corporate bond, the Good Energy Bonds at a coupon of 7.25% a year.

The launch of the Good Energy Bonds is intended to raise finance for the Group to invest in increasing its own solar and wind generation capacity. The proceeds will contribute to the Group’s overall objective of developing 110MW of its own renewable energy generation capacity by 2016; targeting 50% of its customer’s future electricity supplies.

In 2012 the Company reported annual revenue of £28.2m with profit before tax of £1.4m.

Juliet Davenport, OBE, Founder and CEO of Good Energy said: “We believe this product provides investors and customers with the opportunity to be a part of the development of the UK’s green energy market and Good Energy’s expansion in particular, while also providing a yield backed by a Group which has a strong financial track record.”

Applications for the bond are due to close on 13th November 2013.

Key features:

+The Good Energy Bonds offer investors a coupon of 7.25% per annum, paid half-yearly

+ In addition, any Good Energy customer or generator investing in the Good Energy Bonds will be paid at maturity the equivalent to 0.25% for each year of being a customer and a bondholder

+The Good Energy Bonds have an initial term of four years and are being issued by Good Energy Group

+ Looking to raise £5 million through the Good Energy Bonds, up to an over-subscription maximum of £15 million

+The Good Energy Bonds also provides investors with a strong social return, as funds raised from the Good Energy Bonds will be invested directly in UK clean energy infrastructure

+Investments can be made in multiplies of £500, with no maximum

+The Good Energy Bonds are an unsecured debt of the Company

Good Energy has over 100,000 customers and generators, and has topped the Which? Customer Satisfaction Survey for electricity suppliers for three out of the last four years. It operates a 9.2MW wind farm which provides 16% of its electricity supply, with a further 8.2MW of wind-generated power capacity under construction.  The Group is also now has a wind and solar farm development portfolio in excess of 200MW.

Australia's disappearing jobs

RUBBISH collectors, secretaries and switchboard operators are among the jobs that are disappearing in Australia - fast.

A comparison of Census data between 2006 and 2011 shows there are occupations where the number of people employed across the country has dropped by up to 66 per cent in five years, despite the fact the overall number of people counted has risen 10 per cent.

Occupations that registered the biggest drops include corporate services managers, photographic developers and safety inspectors.

John Spoehr, executive director of the Australian Workplace Innovation and Social Research Centre, said mechanisation was playing a role in the decline in many of the jobs listed, for example sorters replacing rubbish and recycling collectors and other machines taking the place of switchboard operators.

Prof Spoehr said the major drop in corporate services managers - from 21,804 in 2006 to 7365 in 2011 - would have been caused by the global financial crisis but that the high scale of job losses was "surprising".

Jonathan McIlroy, joint managing director of the Executive Assistant Network, said the decline in the number of secretaries - from 94,404 in 2006 to 64,169 in 2011- could be attributed to offshoring and the redefining of job titles.

"The term 'secretary' is demeaning; the connotation is that they're someone who is purely there to do typing and low-level clerical work," Mr McIlroy said.

"It's a hang up from an era that just no longer exists. Now instead you've got receptionist, team assistant, junior assistant, admin assistant."

AUSTRALIA'S DISAPPEARING JOBS

Corporate services managers 

2006 - 21,804

2011 - 7365

Recycling and rubbish collectors 

2006 - 3889

2011 - 2133

Safety Inspectors 

2006 - 5845

2011 - 3365

Photographic Developers and Printers 

2006 - 3285

2011 - 1945

Switchboard Operators 

2006 - 6301

2011 - 3835

Textile and Footwear Production Machine Operators 

2006 - 5073

2011 - 3229

Graphic Pre-press Trades Workers 

2006 - 5052

2011 - 3248

Secretaries 

2006 - 94,404

2011 - 64,169

Metal Engineering Process Workers 

2006 - 14,927

2011 - 10,440

Timber and Wood Process Workers 

2006 - 8166

2011 - 5768

Boat builders and shipwrights 

2006 - 4974

2011 - 3624

Printing Assistants and Table Workers 

2006 - 5967

2011 - 4357

Forestry and logging workers

2006 - 3379

2011 - 2529

Nursery persons 

2006 - 4907

2011 3672

Product Assemblers 

2006 - 32,670

2011 - 24,887

Shearers 

2006 - 4173

2011 - 3203

Toolmakers and Engineering Patternmakers 

2006 - 7348

2011 - 5672

Canvas and leather goods makers 

2006 - 3304

2011 - 2550

Crop Farm Workers 

2006 - 25,541

2011 - 19,855

Meat Boners and Slicers, and Slaughterers 

2006 - 9524

2011 - 7584

Printers 

2006 - 15,315

2011 - 12,498

Debt Collectors 

2006 - 10,144

2011 - 8487

Mixed Crop and Livestock Farmers 

2006 - 41,347

2011 - 34,724

Financial dealers 

2006 - 18,005

2011 - 15,168

Judicial and Other Legal Professionals 

2006 - 9192

2011 - 8032

Paper and Wood Processing Machine Operators 

2006 - 7581

2011 - 6694

Auctioneers, and stock and station agents 

2006 - 3021

2011 - 2709

Occupy Wall St to launch debit card

TWO years ago Occupy Wall Street was a protest movement crying for the downfall of the financial system as we know it. Today it's a bank.

That's right, the group plans to launch its very own financial cooperative providing services to people who might otherwise be unable to get access, New York Magazine reported.

Occupy Wall Street was a peaceful protest movement that began in September 2011 following the global financial recession. The group's goal was the arrest and trial of the businessmen responsible for causing the Wall Street crash, to fight corporate America's influence over the political system and to address the massive disparities in wealth the world over.

Protesters of all ages camped out in Zuccotti Park in New York and refused to move until their issues were addressed. The movement sparked Occupy protests all over the world, including Australia. Of course this ended in tears and police brutality.

While the group was a powerful movement, it is largely seen as a failed one. It's failure is blamed largely on the group's lack of hierarchical structure, it's inability to focus on a single goal and its refusal to appoint a spokesperson.

This YouTube clip from Aaron Sorkin's The Newsroom - while fictional - is a pretty comprehensive summary of everything that was wrong with the Occupy movement:

However three years later the group is trying to address its goals from another angle.

Instead of fighting against the system, the group is trying to work within it to the advantage of the most disenfranchised.

The group this week launched the Occupy Money Cooperative, which is a not-for-profit organisation that offers financial support and products to people who might otherwise not have access to them.

"We're like a bank, but better," the organisation says in an ad on YouTube.

"Like a bank your money will be insured, but unlike a bank you'll get a better deal because the cooperative is run by members which means we don't have to answer to Wall Street or profit hungry directors.

"We'll answer only to ourselves. We'll be in control of the products we offer, the way we operate, the future we create. And membership will be available to everybody, no matter where you live or how much you earn."

The first product the group plans to launch is a cheap, prepaid Occupy branded debit card.

The Occupy cards are free to set up, cost only 99 cents a month, cost $1.95 to withdraw money and 99 cents to check your bank balance.

Occupy critics will no doubt be pleased to see the group trying to change the system from within.

It's a pretty interesting concept that Occupy is toying with, and if it is successful it could potentially open up the floodgates for other not for profits to either get involved or launch their own financial services which would in turn allow the world's least wealthy people to move away from banks and lenders that have been bleeding them dry.

There's one catch.

The group says it needs to raise about $900,000 before it can start offering the debit cards.

"Please donate today and take part in the revolution that will make banking fair, transparent and affordable."

Ironically, the group plans to partner with one of the organisations it claims to despise - Visa - to turn this dream into a reality.

One of the members of the co-op Carne Ross told New York Magazine that the group "had no choice but to partner with that company or a similar one in order to produce a debit card that would be widely accepted".

Institute of Business & Finance Announces a New CFS® Designee

Founded in 1988, IBF is a non-profit provider of financial education and designations to members of the financial services industry.

The Institute of Business & Finance (IBF) recently awarded Justin Sumner with the first nationally recognized mutual fund designation, CFS® (Certified Fund Specialist®). This graduate-level designation is conferred upon candidates who complete an 135+ hour educational program focusing on closed-end funds, mutual funds, ETFs, REITs, UITs and modern portfolio theory. Over $12 trillion is invested in mutual funds in the United States; half of all households own shares in at least one mutual fund.

CFS® certification requires mastery of portfolio construction, risk measurement, manager selection, monitoring, income strategies, retirement accounts, titling, taxation and the psychological aspects of finance. According to IBF, “The vast majority of investors and advisors do not know how to properly select a mutual fund, understand what criteria are important, asset category correlation or what historical statistical information is a good or poor predictor of what is likely to happen in the future.”

The student must pass three comprehensive exams, complete a written case study as well as adhere to the IBF Code of Ethics and IBF Standards of Practice as well as fulfill annual continuing education requirements. The CFS® program, since 1988, is designed for brokers and advisors who have clients that either own or are considering investing in mutual funds or exchange-traded funds.

ABOUT THE INSTITUTE OF BUSINESS & FINANCE – Founded in 1988, IBF is a non-profit provider of financial education and designations to members of the financial services industry. IBF is the fourth oldest provider of financial certification marks in the United States. In 1988, IBF launched its first certification program, CFS® (Certified Fund Specialist®). Today IBF offers four additional financial designation programs: CAS® (Certified Annuity Specialist®), CES™ (Certified Estate and Trust Specialist™), CIS™ (Certified Income Specialist™) and CTS™ (Certified Tax Specialist™).

What rich people do differently

MILLIONAIRES share traits that are worth their weight in gold – and you can mine these for yourself

BRW recently released their Young Rich list, ranking the top 100 self-made millionaires under 40. With an average age of just 36 and average wealth at a whopping $51 million, we’ve got to ask the question, what are they doing differently?

Because while smart day-to-day finance choices and long-term planning go a long way in building wealth, understanding how the rich make their money may help us catch up quicker.

Here are some investment lessons we can take away from this super-successful bunch.

WEALTH CREATORS RATHER THAN INVESTORS

Look through the rich lists and you’ll see that the people are generally self-made millionaires and billionaires who have had a good idea and built a valuable empire around it. They’ve either started a business from scratch or bought a dud and turned it around.

They generally see an undervalued asset, buy it, add value and then sell it for a profit. It could be a company, a property or an idea. The lesson is to start small and go for it.

APPETITE FOR RISK

That self-belief has to be matched with an appetite to take risks. To varying degrees, the rich are gamblers.

They assess the odds of a new venture or investment being successful and are willing to take a punt because they’re confident they can make it work. They’re also willing to borrow a lot of money to back their dream if needed.

And that’s one of the big differences between the rich and the rest of us … the size of the bets. Where we would have sleepless nights worrying ourselves silly, the successful wealth builders will borrow millions of dollars to finance a project and not even blink.

They follow the adage that if you borrow $100,000 the bank owns you, but borrow $100 million and you own the bank.

NOT AFRAID TO FAIL

Most of us live in fear of failure and the stigma that comes with it. What will others think?

The rich and successful see failure as a learning experience. They know they won’t be right all the time and when they fail they dust themselves off, learn a lesson and try something else.

Harvey Norman chairman Gerry Harvey once said: “You’ve never been in business until you’ve been to the brink, looked over the cliff, learnt the lesson and then stepped back.” Great advice. We’ve been there.

THEY DO THEIR HOMEWORK

While the rich have guts and are happy to take a risk, they do their homework carefully before making a move. They put in the time and effort to ensure they have every base covered, and they’re not emotional about it. After all the research, if the deal doesn’t stack up, they’ll just walk away.

STICK TO WHAT THEY KNOW

The rich do what they do best and stick to it. They understand you can’t be good at everything. When they do divert from their core business, it’s only risking a small percentage of their wealth even though the sheer numbers may seem huge to us.

Westfield shopping centre king Frank Lowy had a small foray into the Ten television network in the 1990s but has really stuck to shops. Gina Rinehart is doing it at media company Fairfax but it’s a small commitment compared with her iron ore mining empire.

DRIVE A HARD BARGAIN

They are generally born negotiators. They want the very best deal and are prepared to haggle to get it. While we get embarrassed about pushing too hard on a purchase, the rich will be relentless in getting the best deal on everything they can.

FRUGAL WITH THEIR MONEY

Most of the rich people we know watch every dollar they spend. Many still have the first dollar they’ve ever made and are positively stingy.

HARD WORK

Despite their huge wealth, the first generation of rich do work hard. A lot harder than most of the rest of us. But it can come with sacrifices that most of us wouldn’t make.

For us, a successful wealthy person is someone who has a relationship with their kids and partner. But so often we see successful Aussies who have sacrificed their family relationships for work, and that’s pretty sad.

2-day international conference on business, management, finance concludes

Srinagar, Sep 29:  The two day International Conference on ‘Contemporary Issues in Business, Management & Finance (CIBMF-II) organized by Department of Business & Financial Studies (DBFS) which was sponsored by J&K Bank, SBI and HDFC Bank concluded today here at University of Kashmir.

 Speaking on the occasion Vice Chancellor University of Kashmir Prof Talat Ahmad said that such conferences have become more important and relevant given the way the markets are behaving in the contemporary times and because of the challenges and treats posed by economic meltdowns and economic depressions.

 Head DBFS and Conference Director Prof Mohi-ud-din Sangmi while delving out the objectives of the conference said “The event is aimed to bring luminaries in the area of business, management and finance at one platform to deliberate upon profound challenges facing business and industry and more than 150 delegates from India as well as abroad are expected to present their research papers on conference related themes.”

 Speaking on the occasion Dean Faculty of Commerce and Management Prof Shabir A Bhat highlighted the role of higher institutions of learning in bridging the gap between the human resource and the industry under the changing dynamics and requirements of the corporate world.

 Besides Dean Academic Affairs KU Prof AM Shah, , Registrar KU Prof Zaffar A. Reshi, DCDC Prof GM Shah advisor to Government on Higher education Prof Nissar Ali several Deans of various faculties, Heads of the departments, senior faculty members, scholars and students of DBFS and some senior bank official from SBI, HDFC and J&K bank were also present on the occasion.

 Dr Khursheed Ali, Assistant Professor, DBFS, presented the vote of thanks. 

Film News, Pawan Kalyan Fans Zone,

DUBAI –  Cash-rich Asian and Middle Eastern lenders are taking a larger share of the $100 billion global aircraft financing market as Western rivals step back due to the liquidity crunch and stricter regulations, a top executive at Airbus said.

European commercial banks, previously the primary funding source for airlines, have substantially cut their exposure to the aviation sector after the continent's debt crisis, leaving a funding gap for fast-growing airlines in emerging markets, said Francois Collet, vice president for structured finance at Airbus .

"Some European lenders have halved their lending availability for the aviation sector," Collet said in an interview in Dubai.

"They have tried to fill the gap by bringing in other regional and local banks and working together in syndicated deals. Traditional banks are now playing the role of arrangers," he said.

French banks BNP Paribas , Societe Generale , Natixis and other European lenders said last year they would cut exposure to risky and dollar-denominated assets such as shipping and aircraft financing to meet tougher capital rules and shore up reserves.

They have given way to Asian banks like Development Bank of Japan (DBJ), Sumitomo Mitsui Financial Group Inc (SMFG) <8316.T> and Mitsubishi UFJ Financial Group Inc <8306.T>, South Korean and Chinese banks, as well as Middle Eastern lenders like National Bank of Abu Dhabi among others.

DBJ expects its global aircraft financing business to double in the three years through 2013.

"We see Southeast Asian banks developing expertise and there's lot of interest from Japan and South Korea gaining an interest in the sector," said Collet.

"They clearly want to grow outside of their region."

Asian giants like Singapore Airlines , Malaysia's low-cost carrier Air Asia , Japan's All Nippon Airways <9202.T> and Indonesia Lion Air are among companies that have ordered planes worth billions of dollars to support growing passenger numbers.

Airbus has recently raised its 20-year jet demand forecast, saying the world needed to double its fleet to meet demand.

The plane maker says Middle East plane orders account for 8 percent of the planemaker's total backlog as of end-August.

Emirates, which has the world's largest fleet of the A380 superjumbos, used a mixed bag of funding including bonds, operating leases, U.S. export credit facilities and financing leases to raise $5.5 billion in the current financial year.

"The challenge for airlines would be to diversify funding sources as growth comes back to the aviation industry," said Collet.

Capital markets will also have a bigger role to play in aircraft financing -- it will account for about 14 percent of total jet financing in 2013, up from 10 percent last year, Boeing said in an annual forecast in December.

For instance, Dubai-based Emirates has sold two bonds this year - a $1 billion sukuk in March and a $750 million bond in January - and more is expected in 2014.

Pension funds and insurance companies, which have traditionally stayed clear of aircraft finance, are also looking at the sector, attracted by reasonable stability and the long-term nature of the financing, said Collet.

Aspiring buyers get rewarded for stashing cash

FIRST home saver accounts have had their biggest boom in three years with account numbers swelling and balances skyrocketing.

Latest figures by the Australian Prudential and Regulation Authority show in the June quarter more than 5000 accounts were opened — the largest amount in any quarter since June 2010.

And the balances have flourished, growing by 18 per cent in the second quarter of this year which is the largest growth for any quarter since the inception of the accounts by the Federal Government five years ago.

There are now more than 45,200 accounts holding more than $491 million — the average balance is $10,862.

The large interest payments on the balances — which includes the Federal Government’s contribution of 17 per cent for the first $6000 deposited each financial year — and the removal of many first homeowner grant incentives has made the accounts more appealing than every before.

ME Bank hold the biggest market share of the accounts and their group executive Ian Hendey said there’s usually a seasonal spike at the end of each financial year with first-home buyers rushing in to get the maximum interest payments by June 30.

“This year we’ve seen the biggest jump in growth in first home saver accounts since the scheme began and ME Bank has received more than 80 per cent of the total as we’re one of the few banks that offer it,’’ he said.

“The recent growth is due in part to the changes to first homebuyer grants around the country which is forcing some first home buyers to save higher deposits but also due to record low interest rates which is forcing savers to look around more astutely for better ways to save.”

On top the government’s contribution banks also chip in and pay interest too.

Aspiring first-home buyer Bernard O’Dowd, 24, from Chelmer in Brisbane’s west opened an account earlier this year after his mum told him about it and he said it’s a great way to save.

“She told me how high the interest was on the account and I thought it sounded good, it’s hard when you’re a single person and you’re trying to buy a house,’’ he says.

“I’ve got a few plans of what I want to buy with the money but I’ve got a few years to plan because you need to have the account open for four years.’’

Mr O’Dowd already has nearly $10,000 stashed away, putting aside about $250 a week and said he hoped to save more than $50,000 before he can access his funds in four years time.

1300homeloan director John Kolenda said the FHSA’s recent boost in popularity could be a combination of the large interest repayments it pays and the scaling back of the first homebuyer grants across the country.

“As a first homebuyer if they’re going to save a deposit then they’d be better off using this initiative than going and put it into a (savings) bank account,’’ he said.

BHP boss earns $US16m in final year

OUTGOING BHP boss Marius Kloppers earned more than $US16 million ($A17.14 million) in the last of his 20 years at the global mining giant.

The 51-year-old South African could earn up to another $A18 million in long term bonuses through to 2017, based on BHP's current share price.

Plus, the one million shares he personally owned or held interests in when he stepped down as CEO in May, are currently worth more than $A35.5 million.

Mr Kloppers continued to be paid his $US2.2 million base annual salary after stepping down, as he is working as a consultant up to the end of September to help with the transition to Andrew Mackenzie.

Of the $US16.2 million Mr Kloppers earned in the 2012/13 financial year, 83 per cent was short term and long term bonuses.

Half of those bonuses were paid in shares.

In 2012/13, BHP's profit dropped by 30 per cent to $US10.9 billion, due mainly to weaker commodity prices.

But it did lift its full year dividend to shareholders by four per cent.

New chief executive Andrew Mackenzie was paid $242,00 in cash in his first seven weeks in the role, plus potential long term incentives and other benefits to the value of about $2.2 million.

But the company's executive pay has changed since the boom years experienced during Mr Kloppers' six year tenure as boss.

Mr Mackenzie and the rest of the 12-member group management committee are all taking 25 per cent pay cuts compared to what top managers received under Mr Kloppers, BHP's annual report, released on Wednesday, revealed.

Many of those top managers now also hold more responsibility while taking home less pay, due to the removal of a layer of management by Mr Mackenzie.

Long term bonuses were cut by 35 per cent last month in recognition of weaker returns for BHP shareholders over five years.

Directors' fees have also been frozen for the third consecutive year.

Mr Mackenzie's annual salary is $US1.7 million, plus 25 per cent in superannuation, short term incentives worth up to $US4.1 million and long term bonuses worth up to $US6.8 million.

In the annual report, BHP chairman Jac Nasser warned investors of continuing short term pain and falling commodity prices, with iron ore, petroleum and copper BHP's major earners.

China's weaker than expected growth, and supply growing faster than demand, were blamed for the company's lower profit.

However Mr Nasser predicted lower rates of investment across the resources sector would lead to more balanced markets, while China's economy should rebalance.

"We maintain a positive outlook over the long term as the fundamentals of wealth creation, demographics and urbanisation continue to create demand for commodities across Asia and other markets," Mr Nasser said.

Financial Tech to recast accounts

The performance of Financial Technologies India (FT) should not be judged by the payment crisis and alleged frauds at the National Spot Exchange (NSEL), according to Jignesh Shah, its Chairman and Managing Director.

Addressing an unscheduled meeting of presspersons, Mr. Shah said that he had assured shareholders at the annual general meeting held here on Wednesday that FT would demonstrate its commitment despite being a victim to the happenings at the NSEL. Mr. Shah said the company, along with investor forums, would go after the 23 planters to recover the maximum money due by them to NSEL. He said he was already having dialogues with several investors for the past 45 days, and was scheduled to meet the investors’ forum in Chennai. It was important that small investors who had put in their hard-earned money were safeguarded, he said.

At the annual general meeting, it was decided to restate the accounts for 2012-13 with the existing auditors Deloitte, Haskins & Sells. Though no timeframe was fixed, he said there would be another meeting of shareholders to ratify the accounts. Quizzed on the impact of NSEL crisis on the profits of FT, Mr. Shah said it would be known only after the audit was recast. Asked whether the dividend already announced would be cut, Mr. Shah said that FT, with a base of 55,000 shareholders, was paying dividends continuously for 36 quarters. “It is my wish to continue paying dividend. But it all depends on the decision of board of directors,” he said.

Mr. Shah also categorically denied diluting stake in Financial Technologies.

Mr. Shah said though he had attended one or two AGMs held in Chennai, this time he wanted to be here and meet the shareholders to demonstrate the company’s commitment and bonafide. A company, which was enjoying reputation of highest value, lost it due to crisis at NSEL. “But we need to stand up to the crisis,” he said.

Huntington Expands Auto Dealer Financing Business into Iowa

COLUMBUS, Ohio--(BUSINESS WIRE)-- Huntington (NASDAQ: HBAN; www.huntington.com) has announced that it is expanding its growing auto dealer financing business into Iowa and has added key personnel into the state to support the initiative.

"Huntington Auto Finance continues to expand its auto finance business in key states and is pleased to welcome dealerships in Iowa as our new valued customers," said Rich Porrello, director of Huntington Automobile Finance. "We look forward to building strong relationships with these Iowa automobile dealerships and believe they will want to be affiliated with a bank that offers consistent underwriting, rapid funding and superior customer service. These dealers will find doing business with Huntington to be a rewarding experience."

Huntington has hired a seasoned team with local market knowledge for the state. The bank is available to process loan applications now and expects to provide financing solutions to more than 300 dealers throughout Iowa.

"Our track record in the Midwest and New England, as well as part of the Upper Midwest, demonstrates a proven business model with auto dealerships, one that we now bring to auto dealers in Iowa," Porrello added.

Huntington Automobile Finance has continually met the financial needs of automotive dealers and their customers for more than 60 years. This includes the financing of new and used automobiles purchased by the dealer's retail customers, as well as commercial loans to the dealer primarily to finance new and used vehicle inventory. Dealerships served are located within Huntington's primary banking markets of Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky, and selected other markets including Iowa, Tennessee, New Jersey, Minnesota, and Wisconsin, and six New England states: Maine, Vermont, New Hampshire, Massachusetts, Rhode Island and Connecticut.

About Huntington 

Huntington Bancshares Incorporated is a $56 billion regional bank holding company headquartered in Columbus, Ohio. The Huntington National Bank, founded in 1866, provides full-service commercial, small business, and consumer banking services; mortgage banking services; treasury management and foreign exchange services; equipment leasing; wealth and investment management services; trust services; brokerage services; customized insurance brokerage and service programs; and other financial products and services. The principal markets for these services are Huntington's six-state banking franchise: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. The primary distribution channels include a banking network of more than 700 traditional branches and convenience branches located in grocery stores and retirement centers, and through an array of alternative distribution channels including internet and mobile banking, telephone banking, and more than 1,400 ATMs. Through automotive dealership relationships within its six-state banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customers.

Bank of Canada says economy no excuse to delay financial reforms

OTTAWA: A senior Bank of Canada official urged global policymakers on Tuesday to push ahead with financial system reforms despite economic weakness, saying financial stability is an important precondition for growth. 

"Some have argued that, given the weak recovery, now is not the time for the broad financial sector reform being promoted by the FSB ( Financial Stability Board). That argument is wrong-headed," Lawrence Schembri said in his first speech since being appointed as a central bank deputy governor in February. 

He said the FSB, operating under the direction of the Group of 20 leading economies, closely monitors the effects of new regulations for unintended consequences. 

Canada's big banks emerged relatively unscathed from the global financial crisis, buoyed by strong capital ratios and conservative lending practices. 

They are well ahead of their US and European peers in complying with higher capital requirements under the Basel III global standards. 

Still, the Bank of Canada says it has identified some areas of the shadow banking sector, the market-based financing done outside the regulated banks, that merit closer monitoring. 

In response to a question from the audience after his speech, Schembri said he saw a "potential vulnerability" in Canada's increasingly popular mortgage investment corporations (MICs). 

These entities typically manage a pool of mortgages and many investors are attracted to them because of their higher yields, but the risks are also higher than with some other types of investment products. 

Schembri said, however, the MICs were less problematic than mortgage real estate investment trusts in the United States, which tend to be more highly leveraged. 

"In Canada, the mortgage investment corporations, one would consider as part of the shadow banking sector but not as tightly regulated as banks. We see this as a potential vulnerability but for the most part it's not as serious as what we've seen in the United States," he said. 

"Part of the shadow banking recommendations are looking at ways to address the vulnerabilities these corporations might pose," he said. "At this point in time we don't see a large vulnerability but we are monitoring those corporations quite closely." 

Schembri's speech stayed away from any hints about Canadian monetary policy. The Bank of Canada has held its key interest rate at 1.0 per cent since September 2010 and market players don't expect a rate hike until the fourth quarter of 2014.

Smaller players get online leg up

A NEW survey has found the majority of small business owners have flocked to social media to give them a leg up on bigger firms, but experts warn the pitfalls can be devastating for those not prepared to handle negative feedback.

A Bibby Financial Services survey out yesterday found 73 per cent of small business owners across the country used social media to make direct contact with customers — 47 per cent through Facebook, 26 per cent LinkedIn, 23 per cent Google+ and 21 per cent Twitter.

Art Shed Brisbane director Manuel Petavrakis said his West End business had an overwhelmingly positive experience through its Facebook page, helping promote local artists and events.

“What we try and do — being a family-owned, locally-run business — is be as sincere and genuine as we can. When friends recommend things to others, it’s a more genuine form of recommendation and we can’t ignore this,” he said. “That’s what these tools are about spreading information.”

Over half the Bibby survey respondents believed smart phones, tablets and cloud technology could give them an advantage over bigger businesses.

But experts warn cases of small businesses struggling to cope with negative feedback online were rising, sparking fears of financial losses if businesses could not find ways to effectively handle complaints or if unfair comments went viral.

Townsville lawyer Evan Sarinas of Sarinas Legal said his firm was taking increasing calls from businesses “fed up with vindictive and careless comments posted on forums”, some of which were having a financial impact.

“These businesses that have devoted a substantial time, money, blood, sweat and tears into building up their reputations over the years, only to have it swiped away by a careless comment in a forum,” he said. “If the comments made are defamatory or cause injurious falsehood to a business, then the publisher of those comments can be sued for damages, and the damage intensifies because the comments can go viral.”

He said one case that had just been resolved saw defamatory comments published at a time when his client’s business was being marketed for sale.

“This had an effect,” he said. “So we issued the concerns notice through Facebook itself to him ... he agreed to retract the statements, apologised and agreed to post retractive comments on all the other forum sites to do with the particular issue that they were commenting about.”

Griffith University Professor Beverley Sparks, who’s leading national research into the impact of negative reviews on businesses and workers in the restaurant and hotel industry, said her team was exploring how businesses might respond effectively to diffuse online negativity.

“We do know from consultancy type research that a business responding does tend to make a customer more confident that they care about the customer and that they’re rectifying problems and issues,” she said.

Professor Sparks said restaurants were particularly exposed because negative comments were often spontaneous and personal in nature — “the staff member was hopeless or this food was dreadfully cooked”.

Restaurant and Catering Australia chief executive John Hart said the industry welcomed moves by the Australian Competition & Consumer Commission to explore whether online review sites in particular needed to be regulated or implement a code of conduct.

“Certainly we are seeing a lot of businesses that are coming to us saying that they have had a vexatious review and that as a result of that trade is dropping off. It has a pretty quick impact,” he said.

Mr Hart said it would help if the owners of sites agreed to take down listings or posts that were proved to be vexatious.

“A small business that employs eight people is not going to have deep enough pockets to undertake (legal) action. That’s why we need the support of organisations like ACCC to intervene here because the market’s clearly not working.”