Wednesday, December 4, 2013
China’s yuan overtook the euro to become the second-most used currency in global trade finance after the dollar this year.
China’s yuan overtook the euro to become the second-most used currency in global trade finance after the dollar this year.
The currency had an 8.66 percent share of letters of credit and collections in October, compared with 6.64 percent for the euro, Swift said in a statement today. China, Hong Kong,Singapore, Germany and Australia were the top users of yuan in trade finance, according to the Belgium-based financial-messaging platform.
The yuan had the fourth-largest share of global trade finance in January 2012 with 1.89 percent, while the euro’s was the second-biggest at 7.87 percent, Swift said.
“It’s true that overseas exporters are using the renminbi more as the contract currency to increase the attractiveness and competitiveness of goods or services sold to China,” said Cynthia Wong, the Hong Kong-based head of emerging-market trading for Singapore and Hong Kong at Societe Generale SA.
The U.S. dollar led all currencies with an 81.08 percent share of letters of credit and collections in October, down from 84.96 percent in January 2012, according to data compiled by Swift. The yen slipped from the third-most used global currency to fourth over the same period, declining from a 1.94 percent share to 1.36 percent.
Yuan Deposits
China is seeking a greater role for its currency in global trade and investment as the state loosens controls on the exchange rate and borrowing costs in the world’s second-largest economy. People’s Bank of China Deputy Governor Yi Gang said Nov. 20 it is no longer in the nation’s interest to keep building up its foreign-exchange reserves, which totaled a record $3.66 trillion at the end of September.
Yuan deposits in Hong Kong, the largest pool outside China, rose the most since April 2011 to a record 782 billion yuan ($128 billion) in October. Agreements were announced this quarter to start direct currency trading between the yuan and both the British pound and Singapore dollar.
“The renminbi is clearly a top currency for trade finance globally and even more so in Asia,” Franck de Praetere, Swift’s Singapore-based head of payments and trade markets for Asia Pacific, said in the statement.
The Chinese currency ranked No. 12 for transactions in the global payments system in October, unchanged from the previous month, according to Swift figures. Payment value for the currency rose 1.5 percent that month, less than the 4.6 percent growth for all currencies, the Swift data showed. That saw the yuan’s market share drop to 0.84 percent from 0.86 percent in September.
Trading Volume
Daily yuan transactions surged to $120 billion in April from $34 billion in 2010, making it the ninth most-traded currency in the world, according to a September report by the Bank for International Settlements in Basel, Switzerland.
The yuan has appreciated 2.3 percent against the greenback this year, the best performance in Asia, according to data compiled by Bloomberg. The currency closed at 6.0924 per dollar today in Shanghai, little changed from yesterday.
China accounted for 59 percent of the trade finance denominated in yuan in October and Hong Kong’s share was 21 percent, Swift data showed. Singapore had 12 percent with Germany and Australia having 2 percent each.
“I’m not surprised as cross-border trades between China and Hong Kong have been quite dominantly denominated in yuan,” Raymond Yeung, a Hong Kong-based senior economist at Australia & New Zealand Banking Group Ltd., said by phone today. “Yuan trades usually increase when there are strong expectations for yuan appreciation.”
Wider Usage
International use of the yuan is increasing as China opens up its capital markets. In the first nine months of this year, about 17 percent of China’s global trade was settled in the currency, compared with less than 1 percent in 2009, according to Deutsche Bank AG.
China and the U.K. will begin direct trading between the yuan and the British pound, Chancellor of the Exchequer George Osborne said on Oct. 15. China also approved an 80 billion yuan quota allowing investors in London to buy onshore assets. Singapore inked a similar agreement with China a week later. Direct trading between the currencies of Japan and Australia started in the past two years.
The European Central Bank and the People’s Bank of China agreed to establish a bilateral currency swap line of as much as 350 billion yuan, the Frankfurt-based central bank said in October.
Trading Restrictions
The Chinese central bank limits the yuan spot rate’s daily moves to 1 percent on either side of a fixing it sets every day. The trading band was widened in April 2012, after being expanded from 0.3 percent in May 2007. The yuan in Shanghai has traded 0.7 percentstronger than the fixing on average this quarter, down from 0.8 percent in the first nine months of the year, according to data compiled by Bloomberg.
The People’s Bank of China will “basically” end normal intervention in the foreign-exchange market and broaden the yuan’s daily trading limit, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined following a Communist Party meeting that ended Nov. 12.
Tuesday, December 3, 2013
The number of seaborne superyachts has increased by 43% in five years as the $10 billion industry increasingly relies on rich clients from the Middle East and Asia.
From an office overlooking the Oceanco shipyard in Alblasserdam, the Netherlands, energy tycoon Mohammed al-Barwani watched workers putting the finishing touches on a yacht that’s longer than a football field.
Once complete, the 92-meter (301-foot) vessel will feature nine bedrooms, a spa and a suite decorated with champagne-colored upholstery and a swirling zebra-stripe motif on terra cotta and eramosa-stone walls.
“We want to build bigger boats, more complicated boats,” al-Barwani, a 62-year-old billionaire who has never appeared on an international wealth ranking, said in an interview at the company’s headquarters in the Rotterdam suburb on the River Noord. “We want to be number one.”
In the three years since he bought Oceanco from Greek shipping magnate Theodore Angelopoulos for an undisclosed sum, al-Barwani has helped make the company into one of the world’s most reputable luxury-boat makers, according to Paul Fowkes, managing director at Corporate Jet & Yacht Solutions, a Nottingham, U.K.-based financing company.
The company was the first to build pools on superyachts, Fowkes said. It has since added pools with mechanical floors that can be raised or lowered to create a plunge pool, children’s pool or helicopter landing pad.
Dutch Pedigree
The number of seaborne superyachts, which are defined as professionally manned luxury motor vessels exceeding 24 meters, increased 43 percent in five years to 6,290 in 2012, according to the (Super)Yachting Index, an industry report published by London-based charter company Camper and Nicholsons International and SuperyachtTimes.com. The boats are marketed almost exclusively to the world’s billionaires, and usually are priced starting at about $175 million.
According to Fowkes, the $10 billion industry is dominated by two other companies: Bremen-Vegesack, Germany-based Luerssen Werft GmbH and Haarlem, the Netherlands-based Feadship Royal Dutch Shipyards. Both family-owned enterprises trace their roots to the 1870s.
“In the 85- to 100-meter size range, in terms of the price quality matrix, Luerssen and Feadship are the market leaders and Oceanco is right behind them,” he said. “You have the pedigree of the Dutch build, first class attention to detail. These are the qualities that a buyer looks for.”
Rising Sun
Luerssen has built some of the biggest boats in the world, including Rising Sun, a 138-meter vessel owned by movie and music billionaire David Geffen. It features a wine cellar, movie theater and basketball court, and is the 10th-largest yacht in the world, according toSuperyachts.com. The company also built Octopus, a 126-meter vessel with a nightclub and two submarines, for Microsoft Corp. (MSFT) co-founder Paul Allen. This year it completed Azzam, which is the world’s largest superyacht at 180-meters.
Running Oceanco is al-Barwani’s part-time job. He’s the chairman and owner of Muscat, Oman-based MB Holding Co., a closely held energy conglomerate that is one of Oman’s biggest non-state controlled companies. The business operates in oil and gas exploration, drilling services and mining, and had sales of $1.3 billion in 2012.
Al-Barwani has a net worth of at least $1.3 billion, according to the Bloomberg Billionaires Index. He declined to comment on his fortune.
Oil Engineer
The billionaire created his first company in 1982, while working as an oil engineer with Petroleum Development of Oman. He ran the 60-person construction business for three years, until he was approached by an oil drill bit vendor who was looking for a supplier in Oman.
He quit his job and transformed the money-losing construction business into MB Petroleum Services, an oil industry supplier that counted PDO as its first client. He faced little competition while he expanded in the Middle East, and acquired companies in Asia andAustralia, making the business one of the world’s largest closely held oilfield contractors.
MB Holding is valued using the average enterprise value-to-earnings before interest, taxes, depreciation and amortization, price-to-earnings and price-to-book multiples of four publicly traded peers: Oil & Natural Gas Corp. (ONGC), Kentz Corp., Integra Group Holdings and TransGlobe Energy. A 10 percent country risk discount is applied.
Al-Barwani, who studied in the U.S and the U.K., spends half his time traveling for business. He was shopping for a new boat in 2009, when an investment banker suggested he consider buying Oceanco, which was founded in 1987. The billionaire traveled to Alblasserdam and discovered a bustling boat-building operation.
Superyacht Contracts
“I wasn’t planning to buy a shipyard,” he said. “It’s so far away from my business, but I thought I’d look and learn something about shipbuilding. It excited me.”
Oceanco has sold seven yachts between 85 and 110 meters since the beginning of 2012, and has orders that will keep its workers occupied through 2016, the billionaire said. Each vessel takes at least four years to build. There are only 15 to 20 known contracts for new superyachts longer than 100 meters, according to Merijn de Waard, managing director ofSuperyachtTimes.com.
Al-Barwani declined to comment on the details or value of yachts Oceanco has sold, citing owner confidentiality. He said each transaction was “significant.”
He wants the company to build features that clients don’t think they need until they see them. Customers upgrade their boats as often as every four years, seeking to add additional space or amenities, such as movie theaters or more fuel-efficient engines.
Designers, Crew
Superyacht prices can be as high as $600 million, depending on variables such as volume and interior design. They are sold on fixed-price or cost-plus contracts, which ensure the builders make their target profit margin after payments to designers, engineers and other contracted workers.
Owners also have to pay for a crew of at least 25, fuel, and the cost of berthing the boat. A yacht’s annual operating costs are about 10 percent of its cost, according to de Waard, who said owning such a vessel is similar to operating a small hotel.
“It’s very much like having a villa on the sea,” al-Barwani said. “In the summer you can be south of Europe or in the Mediterranean, and in the winter you can be in the Indian Ocean.”
To contact the reporter on this story: Devon Pendleton in London atdpendleton@bloomberg.net
To contact the editor responsible for this story: Matthew G. Miller atmmiller144@bloomberg.net
Monday, December 2, 2013
Sunday, December 1, 2013
Fast and Furious Star Paul Walker Dies at 40
By Alex Greg of DailyMail UK
Fast & Furious actor Paul Walker died in a car crash this afternoon when his friend lost control of a Porsche GT and collided with a street light.
The star’s representatives and official Facebook page confirmed his death this evening.
Walker, 40, was a passenger in the high-powered super-car when it spun out of control in Santa Clarita at 3:30pm today.
The LA County Sheriff’s department has confirmed that two people died in a collision at 3:30pm today, but no names have yet been released.
However, representatives for the actor have confirmed that Paul Walker was one of the two men who died this afternoon.
‘It is with a truly heavy heart that we must confirm that Paul Walker passed away today in a tragic car accident while attending a charity event for his organization Reach Out Worldwide,’ reads a Facebook update on Walker’s official page.
‘He was a passenger in a friend’s car, in which both lost their lives. We appreciate your patience as we too are stunned and saddened beyond belief by this news. Thank you for keeping his family and friends in your prayers during this very difficult time. We will do our best to keep you apprised on where to send condolences. – #TeamPW.’
Walker was reportedly an investor in the Always Evolving auto shop in Valencia, California and was in the area for a car show to support the Philippines typhoon relief effort.
Witnesses at the crash scene posted video of the site on YouTube, showing debris from the crash and emergency workers cordoning off the area.
Photographs from the scene show a completely wrecked, burnt out shell of a car.
Friends of the star told a local newspaper that they ‘went through fire extinguishers’ in a futile bid to fight the blaze that engulfed the car after the crash.
‘We all ran around and jumped in cars and grabbed fire extinguishers and immediately went to the vehicle. It was engulfed in flames. There was nothing. They were trapped. Employees, friends of the shop. We tried. We tried.’ Antonio Holmes told the Santa Clarita Signal.
Horror crash: First responders gather evidence near the wreckage of a Porsche sports car that crashed into a light pole on Hercules Street near Kelly Johnson Parkway in Valencia on Saturday, November 30, killing actor Paul Walker
Engulfed: This witness photo shows the Porsche completely consumed by flames after the driver lost control, hitting a pole and killing himself and Paul Walker
Desperate: Bystanders desperately tried to put out the flames with fire extinguishers but the fire was too strong
Friends at the scene said that Walker and his friend were taking the Porsche out for a joyride.
‘Him and his buddy, his brother in arms at heart just decided to joyride, take a spin. Something we all do. We’re all car enthusiasts. … We’re all here driving, enjoying each other, and God must’ve needed help,’ said Holmes, who said he was a friend of Walker.
‘When we saw Paul and Roger leave, Paul was the passenger in the vehicle. They both were experienced drivers.
‘This was just a tragic accident that happened on a joyride,’ said witness Jim Torp of Santa Clarita.
Crash site: Sheriff deputies work near the wreckage of the Porsche sports car that crashed into a pole on Hercules Street near Kelly Johnson Parkway in Valencia on Saturday
A friend lost: Bill Townsend posted this picture of himself with Paul Walker taken hours before his tragic death in a car accident in California
Walker rode the Fast & Furious franchise to stardom, starring in all but one of the six action blockbusters, beginning with the first film in 2001.
The blond-haired, blue-eyed Los Angeles-native brought California surfer good-looks and an easy, warm charm to the popular street-racing series.
‘All of us at Universal are heartbroken,’ Universal Pictures said in a statement. ‘Paul was truly one of the most beloved and respected members of our studio family for 14 years, and this loss is devastating to us, to everyone involved with the Fast and Furious films, and to countless fans.’
The son of a fashion model and a sewer contractor, Walker grew up in a working class, Mormon Los Angeles household. The oldest of five siblings, Walker’s mother began taking him to auditions as a toddler. He was a child model beginning at the age of two.
Walker, the son of a fashion model mother and a sewer contractor father, began modeling as an infant, and starred in a Pampers commercial as a toddler.
Heart throb: Walker was a child model and the face of Davidoff Cool Water, appearing in print commercials for the brand
He was born in Glendale, California and raised in the San Fernando Valley area along with his four siblings.
Walker has said the early induction to show business wasn’t to start him on a career path, but as a way to help provide for the family.
After a string of TV roles as a child in the `80s, Walker made his feature film debut in the 1998 comedy Meet the Deedles. Supporting roles in the films Pleasantville, Varsity Blues and She’s All That followed.
His performance in the 2000 thriller The Skulls caught the eye of producer Neal H. Moritz, who cast him in The Fast and the Furious as undercover police officer Brian O’Conner. Adapted from a Vibe magazine article about underground street races, the film became an unexpected hit.
In the sequel, 2 Fast 2 Furious, Walker moved to center stage with his co-star Vin Diesel momentarily dropping out. Walker, a self-described ‘gearhead,’ kept his character’s sports car from the film.
Too soon: Paul Walker with co-star Vin Diesel (right) in the 2001 film The Fast and the Furious and with Ludacris (left) in the sequel, 2 Fast 2 Furious
Tragic ending: Walker starred in Fast & Furious, the fourth installment of the franchise in 2009 (left) and the next one, Fast Five (right) in 2011
Other roles include Brokedown Palace, She’s All That, Flags of Our Fathers and the Hurricane Katrina drama Hours, which is set to be released in December. Though his stardom didn’t make as much of an impact outside the Fast & Furious series, Walker continually drew praise from his co-stars and directors as a kind-hearted and eager collaborator.
And Fast & Furious proved unusually enduring. Released in May, Fast & Furious 6 was the most lucrative of them all, grossing more than $788 million worldwide.
Walker is the father of a 15-year-old daughter, Meadow, whose mother had recently moved to California from Hawaii so the two could be closer.
Early days: Walker as a young child (left) and pictured in Village Christian High School yearbook in 1991, the year he was voted ‘Best Hair’
At the time of his death, Walker was filming the seventh Fast & Furious movie with Vin Diesel. Just yesterday, he tweeted the following message to his followers.
The boys are back. Will you be ready? - #TeamPW #FastFridays (Photo Credit: http://t.co/kkce2shzvM) pic.twitter.com/RDnrDBGs2n
— Paul Walker (@RealPaulWalker) November 30, 2013
Hollywood stars have paid tribute to the actor, including rapper and actor Ludacris, who tweeted his shock and sadness at his Fast and Furious co-star’s untimely death.
Alongside a touching picture of the film’s cast holding hands, he wrote: ‘Your humble spirit was felt from the start, wherever you blessed your presence you always left a mark.
‘We were like brothers & our birthdays are only 1 day apart, now You will forever hold a place in all of our hearts @paulwalker legacy will live on forever. R.I.P.’
Action star: Walker starred in the film Into the Blue with Jessica Alba in 2005
Animal lover: Walker at the premiere of his film Eight Below (left) said the best thing about the film was the dogs. The star had two dogs, including a Chesapeake Bay retrieve called Boone
Castmates: Paul Walker with Tyrese Gibson (left), Vin Diesel (center left), and Ludacris (right) at the premiere of Fast & Furious 5 in Brazil, 2011
‘No, @RealPaulWalker. No. No. No,’ tweeted actress Alyssa Milano. Walker guest-starred with her in the 80s comedy, Who’s The Boss? ’Rest with the angels. You. Sweet boy. #beauty #love #RIP.’
Veteran actress Goldie Hawn said: ‘Our family mourns the loss of Paul. A very special Human being. Our prayers go his beloved family.’
Bring It On star Gabrielle Union said: This is awful. Awful. #RIPPaulWalker pls pray for his family, friends & fans. We’ve lost a great, laid back, sweet, cool man & father.’
The Wire actor Michael B Jordan said: ‘Man life is so short. People you care about can be here one min and gone the next Don’t take life for granted RIP Paul Walker.’
TV host Vanessa Lachey said: ‘I just heard and am in shock. Prayers to Paul Walker’s family. Life is precious, never take a day for granted. #RIPPaulWalker’
James Franco said: ‘Much love to paul walker. So sad. He gave a lot of joy.’
Others, including Mario Lopez, Jenna Dewan-Tatum, Jack Osborne and DMX also tweeted their sorrow.
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