Shanghai Expo 2010 Exceeds 70 Million Visitor Target

The 2010 Shanghai a scheduled World Expo in the tradition of international fairs and expositions has been held in Shanghai China for the last six months.

The first Expo was held in London in 1851 and this Chinese World Expo comes to a close on 31 October 2010 after participation by over 246 Chinese and International organisations.  Forty-six international pavilions showcased the goods and services of their countries and six pavilions displayed domestic Chinese businesses as did 10 corporate pavilions.

The organisers set a target of 70 million visitors and this figure was exceeded on 25 October 2010 and broke the record of 64 million visitors set by the 1970 Expo in Osaka Japan.   The Shanghai total included 3.5 million overseas visitors.

Volunteers providing service to the Expo totalled 200,000 including some 130,000 college students who will be looking for employment at the end of the world fair.

A Job Fair is planned for 3 November to be held at the Yuanshen Sports Center Stadium, at which enterprises will be offering employment  opportunities to the volunteers who worked full time at the Expo as a way to repay their services during the six-month event, said Pan Min, secretary of the Shanghai Municipal Committee of the Communist Youth League of China.

The fair will be open to all job seekers but volunteers and staff who served at the Expo will be given priority according to the Shanghai Corporate Joint Pavilion, organiser of the event.

Li Dong, spokesman with a human resource firm that is co-organising the job fair said 50 foreign enterprises will be among the 200 enterprises  offering positions.  According to the Shanghai Municipal Committee of the Communist Youth League of China and the Shanghai Municipal  Human Resources and Social Security Bureau it is expected that about 2,000 positions will be offered to the volunteers who impressed both  global visitors and possible future employers.

Following on from the Job Fair a further opportunity for employment will be provided with a career fair offering more than 1,000 positions  scheduled at the Shanghai Corporate Joint Pavilion inside the Expo Garden next month.

ASX Takeover Offer by SGX

The Singapore Stock Exchange [SGX] has made a takeover offer for the Australian Stock Exchange [ASX] that is in excess of $8 billion.  The combined company will become world’s fifth largest listed exchange company by market value.   The SGX and ASX are Asia’s second and third largest bourses respectively and the combined operations will then rank second in Asia a move that is expected to lead to $30 million in cost savings.

The deal is subject to regulatory approvals in Australia including the requirement for the Australian Parliament to lift a 15 per cent ownerhsip cap on the ASX and approval from the Foreign Investment Review Board (FIRB).  The Australian Competition and Consumer Commission is said to see no hurdles in the proposal.

Magnus Bocker, the former head of Nasdaq OMX who took over the job as CEO of SGX just 10 months ago is expected to take the role of Chief Executive Officer of the combined group.

A press release issued jointly stated:  “This combination will bring together the complementary businesses of two successful exchanges in the Asian time zone, with internationally recognised regulatory standards.  The combination leverages the strengths of ASX through its listings, stock options and fixed income franchises, with SGX, the Asian gateway for international listings, equity futures and OTC clearing, to create the region’s pre-eminent exchange group.”

It also stated: “The transaction is unanimously recommended by the Boards of Directors of each of ASX and SGX.”

J Y Pillay, Chairman of SGX, commented:  “We are privileged to partner ASX, which brings to SGX a strong brand, an established business franchise and enriched capabilities.”his will be a highly competitive exchange group in an increasingly globalised world.”

China May Cut “Rare-Earth” Exports

China the world’s largest supplier of “rare-earth” minerals is planning restrictions on their export.  The state-owned China Daily,  cited a senior unnamed Chinese Ministry of  Commerce official in its report that China will “further reduce quotas for rare-earth exports  by 30 percent at most next year to protect the precious metals from over-exploitation.”

The  official went on to say, “The country’s reserves  of medium to heavy rare-earth supplies might run dry within 15 to 20 years at the current rate of production.”

The International Union of Pure and Applied Chemistry [IPUAC] defines these rare-earths as 17 in number in the periodic table of chemical elements which currently numbers  118 elements in total.

2011 was designated  as the International Year of Chemistry by IPUAC and was launched in January at the UNESCO  Headquarters in Paris.

China produces over 97% of the world’s supply, despite it having only 37% of proven  reserves.  These are sourced mainly in Inner Mongolia.  When China became the major supplier it undercut prices and many other countries ceased production and exploration for the rare-earths.

Other countries which have stocks of rare-earths include the United States, Brazil, Canada, South Africa, Australia, Thailand, Malaysia, Malawi and Sri Lanka.

Advances in technology have led to increasing demand for the rare-earths  as their use is now required to meet the manufacture of components and magnets for  industries including, aeronautics, automobiles, electronics, medical devices,  military engineering, nuclear power and sporting equipment.

Restarting those suspended operations or starting up  new ones will be costly as the minerals are not usually found in high concentrations and are expensive to extract.  There are also environmental concerns and costs with the use of toxic acids in refining and the need to dispose of the toxic waste output.

The United States Trade Representative recently announced a probe following a petition from the United Steelworkers Union alleging there are a number of subsidies and protections practiced by China which violate World Trade Organisation rules.   The Steelworkers’ petition to the trade office states “China uses export quotas, taxes, and  licensing procedures to restrict exports of these minerals to users in the U.S. and other countries.”

In September the US House of  Representatives passed legislation  authorizing federal loan guarantees for projects to mine and develop rare-earth minerals.

The Energy Department is already working on a strategy that includes the development of substitutes for rare-earths.

Spongy Brakes Issue in Latest Toyota Vehicle Recall

Toyota Motor Corporation in Japan made its latest announcement on vehicle recalls on 21 October 2010.    At issue this time is the possibility of brake fluid leaks affecting up to 1.5 million vehicles worldwide.

About 740,000 cars are believed to be affected in the USA.

The Toyota brake fluid which contains polymers was used in the assembly of vehicles sold in the US market.   In a statement issued by the company it explained the problem.

“The polymers act as lubricants for certain brake system components.  If during vehicle maintenance, brake fluid is used that does not contain such polymers or only small amounts, a part of the internal rubber seal (brake master cylinder cup) located at the end of the brake master cylinder piston may become dry and may curl during movement of the piston.

If this occurs, a small amount of the brake fluid could slowly leak from the brake master cylinder into the brake booster, resulting in illumination of the brake warning lamp.”

The recall is to address the instances of customers who do not use Toyota genuine brake fluid with the included polymers. The company said drivers who continued to use the vehicles despite the brake warning lamp illumination will start to experience “a spongy or soft brake pedal feel” and reduced braking performance.

The production years cover 2004-06 and include Avalons, Highlanders and Lexus models.  On the Toyota Owners Web Site customers can enter their VIN (Vehicle Identification Number) to find out if their specific vehicle is involved in recent recalls.

Beginning in early November 2010 Toyota plans to notify owners of vehicles for recall by first class mail.   The affected brake master cylinder cup will be replaced with a newly designed one by Toyota and Lexus dealers at no cost to the vehicle owners.

Manhattan's Chelsea Hotel Up For Sale

One of New York City’s best known landmark hotels the Chelsea Hotel located at 222 West 23rd Street, Manhattan is up for sale. It first opened in 1884 as an apartment co-operative and became an hotel around 1905. It has a history and reputation as a center of artistic activity and many famous names have spent long and short sojurns under its roof.

Its front portico has several plaques with the names of some the 20th century’s literary giants including Brendan Behan, Dylan Thomas and Arthur Miller who all wrote while residing there over various periods. Other residents and visitors included the writers Eugene O’Neil, Thomas Wolfe, Arthur C Clarke.  It was a popular spot for musicians among them being Janis Joplin, Jimi Hendrix, Leonard Cohen and Bob Dylan, the latter who composed songs while staying at the Chelsea.

It continues to be a notable place to visit by both NYC residents and tourists not only for the history of its colorful residents but also its architecture including a beautiful grand staircase which reaches up twelve floors to the roof. In response to public demand the hotel runs public monthly tours of the building which last about three hours.

In 1977 the Department of the Interior placed the building on the National Register of Historic Places and its interiors and history continue to make it attractive as a location for film productions and for publicity purposes.

The property is today controlled by three families in the Chelsea 23rd St Corporation. They have owned it for the last 65 years and Eastdil Secured LLC a wholly owned subsidiary of  Wells Fargo & Company is marketing the property on their behalf.

No indication has been given of the asking price for the 12-storey property which has 125 hotel rooms and 101 residential units. In recent years a major renovation was undertaken of 25 rooms and the lobby.

Swiss Celebrate St Gotthard Base Tunnel Breakthrough

While the world was watching and celebrating the miracle of the 33 miners being rescued from the San Jose mine in Chile after 70 days incarceration, halfway across the world the miners at the St Gotthard Base Tunnel (GBT) in Switzerland were planning their own miracle.  The countdown had started for the final 1.8 meters of tunneling to the breakthrough position of the eastern tube under the St Gotthard massif in the Swiss Alps.

Today the tunneling machine from Faido was started up to push the remaining rock out in the direction of Sedrun and broke through at 14:30pm to create the world’s longest rail tunnel, surpassing the current titleholder the undersea Seikan tunnel in Japan.

A small invited group of 200 witnessed the breakthrough by the boring machine, as about 3500 miners and others who have been involved in the project over its nearly 20 years watched on big screens at various venues. Swiss TV broadcast the event live locally and globally.

Speaking at the breakthrough event in the tunnel, Renzo Simoni, Chief Executive Officer of Alp Transit Gotthard AG, gave special thanks to the miners,  “Through their years of tireless commitment, they have made this world record possible.  The miners are the heroes of today’s celebrations.”

The St Gotthard Base Tunnel was built simultaneously in five sections: Erstfeld, Amsteg, Sedrun, Faido and Bodio.  The first works were carried out back in 1993, and the final breakthrough in the west tube is scheduled to take place in April 2011.  The 57 km GBT is the most deeply set rail tunnel in the world and is the core of the new rail connection, which together with the15.4 km Ceneri base tunnel, will provide a level track through the Alps, constructed as it is underneath the existing  St Gotthard rail tunnel.

Traffic in the region has increased more than tenfold since 1980 and the existing congested St Gotthard road and rail tunnels are at their limits. The GBT came about to meet the aims of the Swiss Alpine Protection Act 1994 which resulted from a series of referendums by Swiss nationals who voted to fund the project.   The objective set was to provide a means to relieve the overuse of roads and the impact on Switzerland’s landscape by heavy trucks carrying millions of tonnes of goods from southern Germany to Northern Italy.    In future the goods will be carried by rail and the tonnage is expected to double while the speed of travel through the tunnel will be halved from what it is today.  Travel times for trans-alpine passenger trains are expected to be reduced by 50 minutes with trains traveling at 250 km/h through the new tunnels.

The cost of the project at latest estimate in October 2010 is in the region of US$22 billion. The Gotthard Base Tunnel is expected to be  commissioned and become operational before the end of 2017.

The Credit Card Trap For Students

All manner of financial services companies and banks will have their sights on the latest intake of first term university or college students and even  those returning to study further in the new year.  They will be laying out an array of offers to get the students to open bank accounts and set up credit cards with the minimum of fuss.

It is sensible for them to become the banker of choice early in the hope of retaining the students as more lucrative clients when they finish their studies and become the high earners of the future.

A credit card will be a new option for a number of students and if they are living away from home for the first time and coming to grips with their  budgeting it may seem all too attractive to put it on the plastic and worry about payment tomorrow.   It is difficult stretching the funds for food, accommodation, books, and other necessities against the desire to go out and party or buy the latest clothing.

That is not to say that a credit card or a bank account with an overdraft facility cannot be a boon.  Indeed it can but they are like a tiger with a tail,  they must be controlled.   Properly managed and with a sensible upper limit which is paid off in due time it can earn one an enviable financial history which will be a benefit later.  Failure to do this however, could mean being dogged for life with a bad credit report or finding it incredibly difficult to reverse one.

Every financial transaction carried out which involves any form of electronic record such as a bank account or credit card is registered somewhere and forms the basis of one’s financial history and everybody has one. It records bank accounts, credit cards, loans, debts and one’s  registration on the electoral roll.

It is not just being in debt that is to be avoided, missed credit card payments or late bill payments can also be registered as a negative on one’s financial history. The credit report just keeps gathering the information. Credit reference agencies that compile these reports are commercial  companies and get their information from a wide range of sources.  This information is then sold to lenders and financial services companies,  who use it to decide one’s credit worthiness before funds are advanced for a loan or similar financial product and even provision of a credit card.

There are websites which contain the fundamentals about budgeting and just what information is held in one’s credit report.   Credit reference  agencies are a source to get access to one’s credit report and credit score and keep a regular check on them.

"Robosigning" Compromises Mortgage Foreclosures

With the mounting allegations about possible impropriety in the handling of mortgage foreclosures a multi-state group of 49 state Attorneys General and the state bank and mortgage regulators has been formed to investigate the issue.  They have announced that they are working with the Multistate Mortgage Committee which represents regulators from 50 states.

In a statement released yesterday they referred to a process which has come to be known as “robosigning” and brings into question the valididty of documents signed in a manner which is contrary to state laws. Iowa Attorney General Tom Miller is heading the group but has given no date for completion of the inquiry.

Some banks have also announced that they are undertaking internal reviews on mortgage foreclosures with Bank of America suspending any further foreclosures in 50 states.  Other major lenders JPMorgan Chase & Co. and Ally Financial Inc are also investigating allegations of impropriety in processing foreclosures and have suspended them in some states.

The majority of homes are bought with a mortgage from a bank, which the homeowner pays off over a number of decades. Failure to make due contracted payments allows the bank to exercise its right to to take possession of the property in what is called a foreclosure and to then sell it to recover its monies. While the current questions as to the integrity of foreclosures could cause homeowners to question them it is unlikely to stop them in the end.

The most common reasons for failure to make mortgage payments are a lack of income due to job loss or other circumstance on the part of the homeowner. With the decline in property value since the subprime crisis in 2008 many home owners now find themselves in an even worse situation with mortgages in excess of the value of their property, which has led increasing numbers of them to simply quit their homes.

The administration of President Barack Obama has so far resisted calls for intervention and a moratorium on foreclosures until the issues are resolved. With Fannie May and Freddie Mac placed into conservatorship by the Government in 2008 during the sub prime crisis continuing to hold and guarantee mortgages on hundreds of thousands of homes any delay in disposing of properties subject to foreclosure will only mean ongoing expense for the US taxpayer.

Regulator, Federal Housing Agency Acting Director Edward J DeMarco, also issued a statement yesterday indicating the intention to continue with foreclosures. “The country’s housing finance system remains fragile and I intend to maintain our focus on addressing this issue in a manner that is fair to delinquent households, but also fair to servicers, mortgage investors, neighborhoods and most of all, is in the best interest of taxpayers and housing markets.”

Another Mission Accomplished Towards Space Trips

Virgin Galactic is the company which is part of Sir Richard Branson’s Virgin Group and plans to offer sub-orbital space flights to the paying public.

The company announced on Monday, 10 October 2010 that its SpaceShip Two had achieved a major milestone with its first successful flight over the Mojave Desert.  Piloted by Pete Siebold who was assisted by co-pilot Mike Alsbury the craft was released from its mothership the WhiteKnightTwo at an at an altitude of 45,000ft.

It then flew freely for 11 minutes before landing at Mojave Air and Space Port in California. This achieved the two main goals of the flight and the pilots were able to carry out other objectives during their brief flight culminating in a safe landing.

Sir Richard who was present at the flight said, “This was one of the most exciting days in the whole history of Virgin.” George Whitesides, CEO of Virgin Galactic who was also present, added “To see the world’s first manned commercial spaceship landing on a runway is a sight I always dreamed I would behold.”

Tickets to ride are a mere US$200,000 and Virgin Galatic says it already has received 370 customer deposits totaling $50 million.  This success brings the chance of the inaugural six travelers  getting their boarding pass that much nearer.

Whitesides said they will be continuing the experimental program to be able to get an FAA licence and get the system into service. The commercial flights will be out of Spaceport America, New Mexico.

A documentary on the build up and preparation for the VSS Enterprise’s flight will be aired on the National Geographic channel in the US at 10:00pm ET/PT on Monday 18 October.