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Business Courage
Monday, February 23, 2015
National Mirror www.nationalmirroronline.net
Global News
McCulley
Pimco chief economist McCulley, Bill Gross loyalist, steps down
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imco said on Friday Paul McCulley had stepped down as chief economist and as a managing director, a role he had assumed in May at the request of Bill Gross, who was the firm’s chief investment officer at the time. The move comes just 10 days after Pacific Investment Management Co hired former Morgan Stanley chief economist Joachim Fels as its global economic adviser and a managing director, an appointment that raised questions about McCulley’s role at the Newport Beach, California-based firm, a unit of German insurer Allianz SE. McCulley’s last day at the firm will be Feb. 28. “We understand and respect Paul’s decision to step down. He is a great friend of our firm and our people, and we wish him great happiness going forward,” Daniel Ivascyn, Pimco’s group chief investment officer, said in a statement. McCulley’s departure, while not entirely surprising, is the latest high-profile exit of Gross loyalists following his abrupt departure on Sept. 26 to distant rival Janus Capital Group Inc. (JNS.N). In January, Saumil Parikh, managing director and generalist portfolio manager, left the firm to pursue other opportunities. In an email to Reuters, McCulley said: “I made the decision to step down from this position over the weekend after Bill resigned on September 26: The existential reason I took the job had left the building. “Today represents the implementation of that decision, reflecting sufficient passage of time not to be distractive of a firm that will always be special in my heart,” he said. Ivascyn, who succeeded Gross as Pimco’s group chief investment officer, and his new management team have been aggressively reassuring clients through meetings, conference calls and advertisements that the firm remains committed to the same investment strategies. Pimco has seen $68 billion of cash withdrawals from
the Pimco Total Return Fund, its flagship fund previously overseen by Gross, in the four months since the end of September. For all of 2014, investors pulled $150 billion from Pimco’s U.S. open-end mutual funds, according to Morningstar data. Pimco, which had $1.68 trillion in assets under management as of Dec. 31, has been bolstering its leadership ranks over the last year since the departure of former Chief Executive Mohamed El-Erian, the result of a falling out over Gross’s leadership style and investment strategy. El-Erian, who has repeatedly called McCulley “my good friend,” did not return calls or emails requesting comment on his resignation. Some of Pimco’s recent big hires include Marc Seidner, who re-joined the firm as chief investment officer of non-traditional strategies; Nobel laureate economist professor Michael Spence, a consultant to the firm on macroeconomic and global policy; and Gene Sperling, a former principal economic advisor to Presidents Clinton and Obama, who is a consultant on U.S. economic policy issues. McCulley said: “In recent months, the firm has strengthened its macro talent pool, an endeavor about which I was aware, but quite appropriately, not a participant at all. I read the news in this regard, just as the general public does. “Pimco’s unfolding transition from a founder-driven, partnership culture to a franchisedriven, corporate ethos is a natural evolution for the firm, in many ways ironic evidence of the genius of the founders. I will cherish my memories and look forward to watching the firm’s continued success.” McCulley added: “My mission here is complete.” McCulley said he will continue to pursue the things he loves in other spaces, possibly in the academic arena.
U.S. authorities probe alleged forged letter from Mirach in Sahara deal
bond transaction that was ruled to be illegal. His bail was set at $1.6 billion, the highest ever in India, and his company sought to raise money to pay for it. The Indian conglomerate was willing to use hotels it owns, including New York’s Plaza, as collateral. The Indian company negotiated for funds with Mirach, a group set up by former broker Saransh Sharma, who lives in Northern California. Mirach gave a letter to Sahara that purported to prove the U.S. group had the funds in an account at Bank of America to lend to the Indian company, but after a Reuters report earlier this month raised questions about the authenticity of the document, Sahara said it was a forgery. Sahara said it would initiate civil and criminal legal action against Mirach in India and the United States. One source said the Federal Bureau of Investigation’s office in San Francisco is currently investigating Sharma, and another said the probe involved the Sahara allegations of a bank letter forgery. FBI spokesman Gregory Wuthrich in San Francisco said he could not confirm or deny an investigation. A lawyer for Sharma said that Sharma has not been contacted by the FBI, and demanded that Reuters refrain from publishing a story. “We have no reason to believe that your source is anything more than a mere propagandist for some group that is adverse to Mr. Sharma and/or Mirach,” Sharma’s lawyer wrote. A Bank of America representative declined to comment on the investigation.
London’s fashion pack turns focus to business for online sales
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ritain’s emerging talent kicked off the first day of London Fashion Week with
designs featuring oversized coats, geometric shapes and voluminous skirts, amid hopes online demand for luxury goods is growing stronger. Delicate embroidered dresses paired with cropped jackets highlighted Turkish designer Bora Aksu’s show on Friday, in colours of gold, dusty pinks and pale blue inspired by Irish writer Oscar Wilde’s The Nightingale and the Rose. Earlier, Korean-born designer Eudon Choi sent models down the runway in boxy leather jackets decorated with colourful geometric shapes, oversized scarves and floral printed flares. More than 5,000 buyers, journalists and bloggers have flocked to London to see emerging talent like Aksu and Choi showcase their designs alongside leading designers Paul Smith, Vivienne Westwood and Burberry’s Christopher Bailey. This season sees the British Fashion Council (BFC) focus on how designers can grow their businesses into successful brands and boost growth in Britain’s 26 billion pound ($39.98 billion) fashion industry. “It is fantastic that we are seeing these young businesses going from strength to strength,” Chief Executive Caroline Rush told Reuters. “The next stage of course is thinking about e-commerce and online businesses and again as part of our business pillar, I’m working closely with the tech sector looking at some quick wins and some really strong guys to help in e-commerce,” Rush added. With online fashion sales expected to reach 19 billion pounds in the next four years, according to research firm Mintel, designers are turning to social media like Instagram, Facebook and Twitter to help drive more online purchases. “We have been very focused on the past year or so, helping designers to understand how they can best use social media,” Rush said. Aksu said the networks
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ederal authorities in San Francisco are probing U.S.based Mirach Capital Group, two sources familiar with the situation told Reuters, amid allegations that the group gave a forged bank letter to Indian conglomerate Sahara as part of financing negotiations. Sahara had sought to borrow more than $1 billion from Mirach to help bail its chairman, Subrata Roy, out of jail in New Delhi. Roy was jailed last year for contempt charges for failing to comply with a court order to repay investors in a
Models at london fashion week
were the perfect tool to help his label grow internationally and gain recognition. Camille Juras, who three weeks ago launched what she called a vegan shoe company making footwear with micro fibres rather than animal leather, said she had already generated sales from using social media websites. “Social media is key. It all starts with online presence and then you grow,” said Juras. “On Instagram, it was instant. You would launch your page, people would start to like you, like your products and that started the sales process.” London Fashion Week, which generates more than 100 million pounds in orders each season from buyers around the world, will run until Feb. 24.
RadioShack cleared to sell leases to 1,100 abandoned stores
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ankrupt electronics retailer RadioShack Corp received court approval on Friday for its plan to try to sell the leases to more than 1,100 stores that it will close by the end of February. RadioShack first proposed closing many of the locations early last year as it struggled to turn around its moneylosing operations, but lenders demanded the stores remain open. After filing for Chapter 11 bankruptcy earlier this month, RadioShack moved quickly to abandon the stores to avoid paying March rent. U.S. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware gave his approval to the bidding and auction process for the leases, which has been under way for weeks. “I don’t think I’ve ever signed an order with bids due in two hours,” Shannon said, referring to the noon deadline for bids. An auction will be held next week for leases that draw multiple bids. RadioShack said it will disclose in a court filing on Saturday which leases drew bids. Once the go-to destination for gadget enthusiasts, RadioShack plans to close nearly half of its 4,000 locations. The company will seek court approval on Monday for the auction process for up to 2,400 stores. An affiliate of the hedge fund Standard General has agreed to act as an initial bidder, known as a stalking horse, for those locations, which will remain open. The hedge fund plans to bring in Sprint Corp as a partner to operate in those stores. RadioShack plans to abandon more stores in March and will put those leases up for sale next month. BC