Monday, September 23, 2013

Notable Articles (Sep-23-2013)

Shanghai lines up first foreign hedge fund entrants: Shanghai has granted an overall quota of $300m that will be divided equally among six foreign funds – Canyon Partners, Citadel, Man Group, Oaktree, Och-Ziff and Winton Capital – with each permitted to raise up to $50m, according to people familiar with the program. [Note: Game-changer. Most Chinese institutions are no-where near the sophistication of US institutions; there’s probably tons of good alpha left in the market]…Source: http://www.ft.com/intl/cms/s/0/6848d56e-1c23-11e3-b678-00144feab7de.html?siteedition=uk&siteedition=intl#axzz2emtaj255

Everything you need to know about the EPA’s carbon limits for new power plants? The key here is that all coal plants in the future will need to emit no more than 1,100 pounds of carbon dioxide per megawatt-hour (vs. ~1,768 now) to get permits. Note that plants that capture and store CO2 are 75% more expensive to run. For coal plants to become competitive, nat gas price needs to go above $ 7 / mmBTU, (but USEIA projects < 6 for the next 2 decades). In short, the steps are EPA’s 1st step towards taming environmental issues. Over the next year, the EPA will craft carbon regulations for the 6,500 existing power plants that are currently operating around the United States. That's a much bigger deal. Those power plants are responsible for about 40 percent of U.S. carbon-dioxide emissions, and the EPA will have to figure out how much to reduce all that carbon. [Note: So perhaps more pain to come for thermal coal…?]…Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/20/everything-you-need-to-know-about-the-epas-carbon-limits-for-new-power-plants/

Telecom on verge of a revolution: Predicted by research from Informa Telecoms and Media: most if not all operators will commence far-reaching operational transformation projects within the next five years. The desire to change is being motivated by declining non-data revenues and a recognition of the need to transition from network-driven to service-driven businesses. Increasing network and technology complexities are also playing a role. Around 85% of operators worldwide view the development of new revenue streams to be their key objective moving forward. Source: http://www.telecomramblings.com/2013/09/telecom-verge-revolution/2/

Starbucks: Leave you gun at the door please: Howard Schultz, who heads Starbucks, released an open letter containing a "respectful request that customers no longer bring firearms into our stores or outdoor seating areas." [Note: I don’t even…the Venn diagram of “those who drink Starbucks” and “those who bear arms” barely overlap, no?]…Source: http://www.economist.com/blogs/democracyinamerica/2013/09/guns-and-coffee

Investment Learning from the Law: Per Madison Avenue Securities’ CIO, here’s how law school helped his investing: (1) To think probabilistically, (2) Learn to argue the other side, (3) carrying out a data-driven perspective and a data-driven process, (4) piece and present data/information analytically, (5) and Check and re-check the work… Source: http://pragcap.com/investment-learning-from-the-law


U.S. Textile Plants Return, With Floors Largely Empty of People:  Note: not really textile & apparel jobs down -60%+, capacity down -30%+ since ~1995, but the interactive graph on the site is really cool. Check it out…Source: http://www.nytimes.com/2013/09/20/business/us-textile-factories-return.html?_r=0

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