news blog from Anglea

Flash sales pioneer Vente-Privee targets U.S.

Tue, 18 Oct 2011 05:01:10 -0400

Founder and Chief Executive Jacques-Antoine Granjon told Reuters the joint venture with the credit card group would give Vente-Privee access to an affluent client base of 40 million card holders, giving it instant credibility and brand recognition despite not being a household name outside Europe.But success in the U.S. is far from certain. Vente-Privee is arriving years after imitators of its flash-sales model such as Gilt Groupe and Rue La La, and also faces e-commerce giants such as Amazon, which recently launched a daily deal service hawking local merchants and restaurants.Unlike in France where sales are limited legally to twice-yearly set periods, U.S. consumers are used to getting deep price cuts on merchandise in factory outlet stores and discount chains such as T.J. Maxx and Marshalls.”The U.S. market is a difficult one where discounting is already very common, so we will have our work cut out for us,” said Granjon, whose wavy long hair and habitual uniform of jeans and chunky silver skull-shaped rings belie his status as one of France’s most respected entrepreneurs.”But we have big ambitions, and if we have the right offering and excellent brands, things will take off quickly.”To conquer the U.S., Granjon said Vente-Privee would stick closely to its formula of selling luxury goods to price-conscious fashionistas in two- to six-day sales, while helping major brands like Armani and Diesel liquidate unsold stock.The approach has put the decade-old company on track to hit more than 1 billion euros in sales this year and turned it into one of Europe’s biggest homegrown on-line retailers with a presence in six countries, including France, Germany, Spain, the UK and, from next week, the Netherlands.Vente-Privee, which has been profitable since 2004, has also been the subject of frequent speculation about an initial public offering or a takeover by a U.S. giant like Amazon.Granjon dismissed both scenarios, saying the company could afford to expand abroad without outside funds given its 150 million euros in cash and healthy 7 percent profit margins.”I’ve never raised money and I don’t need to now,” he said.BUCKING TRENDGranjon and the other founders own 80 percent of the group, which was valued at about 1 billion euros ($1.38) when U.S. private equity fund Summit Partners took a 20 percent stake in 2007 and could be worth three times that, according to analysts.But the e-retailer has so far struggled to replicate its success beyond France, where it earns more than three-quarters of sales, and has seen its model cloned by rivals like Spain’s Privalia, Germany’s Brands4Friends and the UK’s Brand Alley.Vente-Privee hopes to buck that trend in the United States by teaming up with American Express.After more than a year of negotiations, the two agreed in March to invest $15-20 million each in the joint venture. Soon after, they hired former Google executive Mike Steib to run the business and are on track to hire some 200 staffers for the New York headquarters by Christmas.The company has a batch of 30 flash sales ready for the upcoming launch of the U.S. site, Granjon said.Especially in the first few months, Granjon said Vente-Privee would showcase fashion from top brands to win the loyalty of new consumers. The company must also convince U.S. companies to sell unsold inventory on the site at a time when competition for such stock is intensifying.Granjon said the company planned to draw on the strong ties it already has with European brands such as Spanish shoemaker Camper and Italian designer clothes company Diesel, as well as signing up major U.S. retailers like the Gap.Asked what brands he was targeting, he referred to downtown Manhattan’s Soho district: “Think of the square of streets down there between Houston and Canal and West Broadway and Lafayette. I want all the brands that are there.”In a separate interview, Vente-Privee’s Steib said the site would offer 60-65 percent discounts on average and estimated such private sales in the U.S. would be a $1.5 billion market this year and grow to $5-6 billion in the next five years.

Flash sales pioneer Vente-Privee targets U.S.

Tue, 18 Oct 2011 05:01:06 -0400

UPDATE 1-NORDIC STOCKS - Factors to watch on Oct 14

Fri, 14 Oct 2011 03:32:12 -0400

SONY ERICSSON (ERICb.ST)Mobile handset maker Sony Ericsson’s third-quarter profit was in line with expectations, but it was tight-lipped about a report electronics giant Sony was set to take full ownership of the brand.Pretax profit was 31 million euros ($42 million), just higher than the mean forecast of 27 million euros in a Reuters poll and a swing back from a loss of 42 million in the previous quarter.For more on the companies, click on [ERICb.ST],DANSKE BANK , POHJOLA BANKCredit rating agency Fitch has put several large and relatively highly rated European banks, including Danske Bank and Pohjola Bank, under review for a possible downgrade.Currently Fitch rates Danske Bank a+/A+ and Pohjola Bank aa-/AA-.For more on the companies, click onKESKOFinnish retailer and wholesaler said its sales increased 6.3 percent in September from the same month a year earlier. Its total food trade rose 7.6 percent but hardware sales in Finland fell 0.9 percent from a year ago.In August, Kesko’s sales rose 11.4 percent year-on-year.For more on the companies, click onTELIASONERATeliaSonera said late on Thursday it had acquired two licenses in Sweden in the 1800 MHz frequency band in an auction.The licences are valid for 25 years starting from 2013, and the costs for the new frequency blocks in total are 920 million Swedish crowns ($137,6 million).The payment to the Swedish Post and Telecom Agency will be made during the fourth quarter of 2011.For more on the company, click onLUNDBECKThe Danish pharmaceuticals group will establish its own research center in Shanghai, China, it said on Friday. The company is also planning to establish a local packaging factory, aimed at servicing the Chinese market, it said in a press release.For more on the company, click on** For a summary of upcoming results and forecasts, double click on** For the western European company diary covering earnings, shareholder meetings, news conferences and analysts’ meetings, click on or type in the code and hit the f9 button.** Double click on <0#.INDEX.ST> for Swedish indices, <0#.INDEX.CO> for Danish indices, <0#.INDEX.HE> for Finnish indices and <0#.INDEX.OL> for Norwegian indices** For real-time moves on Nordic blue-chip indices double click on , , and** For constituent stock moves highlight the above codes in the command box and press the f3 button on your keyboard** For Nordic top news items, double click on** For the latest news on Nordic stock price moves double click on

UPDATE 1-Microchip cuts Q2 outlook on soft demand

Thu, 13 Oct 2011 18:18:21 -0400

* Sees Q2 rev $340.6 mln vs est $362 mln* Shares fall 2 pct in extended tradeOct 13 (Reuters) - Microchip Technology Inc forecast disappointing July-September results, saying its business did not pick up towards the end of the quarter as it had hoped, as a weak economy squeezes demand in the chipmaking industry.The company, which makes chip products used for a range of embedded control applications, expects second-quarter adjusted earnings of 45-47 cents a share on sales of $340.6 million.On Aug. 4, the company had forecast adjusted earnings of 50-54 cents a share, on sales of $352.0-370.8 million.Analysts, on average, were looking for a profit of 52 cents a share, on revenue of $362 million, according to Thomson Reuters I/B/E/S.”We experienced incrementally stronger headwinds and saw no seasonal Christmas build, which in turn adversely impacted all of our product lines and sales channels,” Microchip Chief Executive Steve Sanghi said in a statement.The company, expected to report second quarter results on Nov. 3, said its two facilities in Thailand, located almost 50 miles east of Bangkok, are running normally and meeting customer demand for its products.Floods that have covered a third of Thailand and have forced the closure of scores of factories in the country and have impacted operations at a number of companies including U.S. chipmaker ON Semiconductor Corp and Microsemi Corp .Chandler, Arizona-based Microchip’s shares were down 2 percent at $34.71 in extended trade. They had closed at $35.31 on Thursday on Nasdaq.

GLOBAL MARKETS-Asia shares rise on progress in euro zone rescue

Wed, 12 Oct 2011 21:01:02 -0400

* Eyes on China dataBy Chikako MogiTOKYO, Oct 13 (Reuters) - Asian shares rose on Thursday on growing hopes that Europe is taking concrete steps to contain the region’s debt woes and head off a systemic banking crisis.Strengthening investor confidence in the euro zone underpinned the single currency, while receding concerns about the banks’ problems threatening the wider financial system sharply tightened Asian credit markets.MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.6 percent, following a 1.4 percent gain in the MSCI world equity index , which posted an increase for the sixth session in a row on Wednesday.The Nikkei average opened up 1.07 percent on Thursday. On Wall Street, the benchmark S&P 500 stock index compiled a gain of 9.8 percent over the past seven sessions, its steepest advance since mid-March 2009.The euro stayed bid early in Asia on Thursday, having jumped to a near one-month high on the dollar as Europe took a step closer to shoring up its financial rescue fund.Lawmakers in Slovakia struck a deal on Wednesday to ratify a plan to bolster the euro zone’s rescue fund by Friday, effectively ending a crisis that had threatened the currency’s main safety net. Slovakia is the only country in the 17-nation bloc left to approve the revamp of the fund.Adding to the sense of urgency, the President of the European Commission, Jose Manuel Barroso, said Europe needed to take decisive action on Greece and outlined a broad plan to contain the debt crisis.As European officials step up efforts to provide a more specific roadmap to resolve its debt woes and recover investor confidence, the European Union is expected to announce a bank recapitalization plan designed to cushion the impact any default by Greece could have on the region’s banks.Germany and France, the leading powers in the bloc, have promised to propose a comprehensive strategy to fight the debt crisis at an EU summit on Oct. 23.In credit markets, which had been feeling the strain of waning confidence in the financial system in recent months, the iTraxx Asia ex-Japan investment grade index narrowed by about 15 points.Oil prices fell on Thursday, with Brent crude futures down 0.1 percent at $111.21 a barrel after rising the day before for an 11.6 percent gain over six sessions. U.S. crude futures fell 0.85 percent to $84.84 a barrel, after snapping a five-session streak of higher closes on Wednesday.Asian markets are focused on China’s trade data due at around 0100 GMT to gauge the strength of the world’s second-largest economy.A stronger-than-expected reading would boost investor confidence about a soft landing for the Chinese economy, while a weaker outcome would add to worries about global growth.

HK shares seen flat to lower as developers in focus

Wed, 12 Oct 2011 04:31:29 -0400

That could weigh on property developers and put pressure on the benchmark as banking shares, which have led the charge over the past two sessions, stabilise.The Hang Seng index closed up 2.4 percent at 18,141.6 on Tuesday and is up about 2,000 points over the past week. The China Enterprises index rose 4.4 percent.With short-selling activity still relatively high and low turnover in Hong Kong suggesting caution, traders say the market could be in for some profit-taking.Elsewhere in Asia, the Nikkei was down 0.7 percent while South Korea’s KOSPI was 0.8 percent lower as of 0100 GMT.STOCKS TO WATCH:* Angang Steel , the listed arm of China’s Anshan Steel Group, said on Tuesday it plans to issue up to 6 billion yuan ($941 million) in short-term bonds and 8 billion yuan of medium-term notes, raising proceeds to repay loans, restructure finances and lower financing costs.* Great Wall Motor Co Ltd , China’s top manufacturer of sport utility vehicles and pick-up trucks, will not appeal an Italian court ruling that its GW Peri compact infringes Fiat’s patent, saying the ruling would have no impact on it.* Great Wall Motor said it is on track to meet its 2011 sales target of 500,000 vehicles, allaying worries that slower growth in the world’s largest auto market may cut into sales.* Russian state bank VEB will sign a deal with China Development Bank (CDB) under which CDB will provide $1.43 billion for building the first stage of UC RUSAL’s 750,000-tonne Taishet aluminium smelter, VEB head Vladimir Dmitriev said.* Property developer Shui On Land Ltd has returned to the loan market for the second time this year with an up to $410 million deal to refinance existing debt and fund expansion, banking sources said.* Asia’s top refiner China Petroleum & Chemical Corp (Sinopec) will cut crude oil throughput this month at its Gaoqiao refinery by about 13 percent from September as a fire-hit coking unit will not come back online until late this month, an industry source said.* PetroChina’s Dushanzi refinery will resume normal operations this week after an almost two-month turnaround, an industry source said on Tuesday.* Changsha Zoomlion Heavy Industry Science and Technology Development Co Ltd said on Tuesday it expected net profit in the first three quarters to rise as much as 92 percent on higher sales.* Emperor Watch & Jewellery Limited said it had commenced discussion with independent third parties on possible investment opportunities to expand its existing business but no formal agreement had been entered. For statement click here* Chinese developer Guangzhou R&F Properties Co., Ltd said contracted sales in September amounted to 3.01 billion yuan, up 50 percent from last month. Given upcoming launches, full year sales are expected to remain on pace if policies stay stable, it added.

Law fights regulation with regulation

Tue, 11 Oct 2011 13:04:49 -0400

The measure orders the Democratic governor’s Department of Finance to establish a uniform method of measuring the economic consequences of regulations put forward by other state agencies.Starting in 2013, those agencies will be required to consider the job gains or losses, advantages or disadvantages to various businesses, and investment increases or declines projected as a result of any proposed regulation with an economic impact of more than $50 million.The Department of Finance will create guidelines for other agencies to follow in conducting those impact assessments.”This new law creates a standard yardstick everyone is measured against — both the regulatory agency and those who offer alternatives that they say are more cost-effective,” California Chamber of Commerce President Allan Zaremberg told Reuters.”It ensures the state follows an accepted practice of doing an economic impact analysis, takes any stakeholder recommendations for what is the most cost-effective approach and — if the agency doesn’t adopt the most cost-effective approach — it must explain why.”The chamber and other business groups, including the California Manufacturing and Technology Association, hailed the legislation as a victory because they say for the first time the state is required to assess the potential harm new regulations impose on the state’s economy.”Our legislation will ensure that businesses spend fewer dollars on regulation compliance and more on innovation and expansion,” said state Senator Ron Calderon, who authored the bill along with fellow Democratic Senator Fran Pavley.The genesis of the bill is in part a reaction to the regulations created by the state Air Resources Board implementing the state’s landmark greenhouse gas measure.Business groups still complain over what they consider a lack of concern about compliance costs shown by the board in its economic analysis of the law, which demands a 20 percent cut in emissions of heat-trapping air pollutants by 2020.The board rejected arguments by critics that the true price tag of implementing the law was far higher than estimated, generating short-term job losses and higher energy costs. Instead, the board insisted its plan would be a net economic gain for California.There are some potentially major loopholes in the regulation measure signed by Brown.Each state agency decides whether a proposed regulation will generate the $50 million in economic impacts set as a trigger for the new law’s provisions. And the densely worded 20-page measure contains no criteria for such a determination.