Newsmaker: James Murdoch faces more great test as heir to the empire

Chairman of BSkyB James Murdoch, who is also head of News Corp in Europe and Asia, repetition, for James MacTaggert Memorial Conference in Media Guardian Edinburgh International TV Festival in Edinburgh, Scotland, August 28, 2009.

Credit: Reuters/David MoirBy Kate Holton

LONDON | SAT July 9, 2011 3: 00 pm EDT

London (Reuters) - James Murdoch was not responsible for telephone hacking scandal that engulfed media empire from his father, but which will matter little if his handling of the case does not improve quickly.

Tipped as the heir to the empire, son of Rupert Murdoch is under pressure to show that it can bring political touch of his father to contain the scandal which is overwhelming the family name and slashing the value of the assets of media daily that for decades in the business.

So far, analysts say it has been slow to realize the enormity of the situation, or to show real humility during an episode in which his journals have been seen to harass the families of child murder victims, fallen soldiers and victims of bombings, all to generate stories.

"It is the most serious political crisis in a generation (for the Murdoch) - but as a crisis of the business, it is immense and immensely more important," said Claire Enders, head of the research group Enders Analysis."

At the time that James Murdoch took over the British International News, News Corp. stable, newspaper in 2007, alleged piracy practices were above, but scandal had hardly begun, and it fell to Murdoch this week to close the document to 168 years in the Centre of the scandal of.

At the heart of the problem, Enders, said, is a sense that, after years of brandishing a curious influence on British politics, James Murdoch and the rest of his company do not know how to handle a situation where they are in error.

"Siege mentality is simply not right", she said. "They got to accept that other people in the world have something to say. But this is simply not a personality trait, it has ever seen them.

"Their attitude is"we are better, we are different", and I fear the word"better"is no longer to apply if these allegations are proven."

HIP HOP RECORD LABEL

Born in 1972, James Murdoch fell of Harvard in 1995to early, a hip-hop music label and once billed itself as a professional cartoonist. Then a few could tip him to exceed his siblings seniors to present online to inherit from News Corp.

Only 12 years later, he took control of the Asian and European of News Corp, which exerts an influence from Hollywood to Hong Kong and has not only paper of best sale of Great Britain, the Sun, but also studios 20th Century Fox, Fox, television Star TV network American cable network, Publisher Harper Collins and the Wall Street Journal.

If it can be an empire building capacity consumed Rupert Murdoch in the long term is yet to see, but James has already shown signs of sharing optimistic approach to his 80-year old father.

Smart and blissful, James is capable of charming interviewers and the public, but inspires fear among many of those who work for him. He maintains a model of the Star Wars wicked Darth Vader outside his Office in London.

"When James was in the building, you could almost hear the music of Darth Vader," said a former Chief Editor of News International.

"He came through his TV interview this week as a nice guy, thoughtful." And it is possible that. "But it is a scary around the Office," said the editor in Chief, who refused to be named.

When the business of Internet of News Corp was founded in the early days of the bubble, James became President. But as the boom became bust, he moved to Hong Kong Star TV base before becoming the CEO of BSkyB in 2003.

This move was initially encountered accusations of nepotism, but he impressed quickly analysts and investors by expanding the company of a paying pure offering broadband and telephony. But as his father, the younger Murdoch has courted controversy. It was a storm in August 2009, when he used a speech at a large festival of television to an overwhelming attack on owned broadcaster Britain, the BBC, echoing speeches Rupert of the father of the same platform 20 years earlier.

James was promoted to run international business of News Corp. of New York in March of this year, a move seen as a confirmation of its status as the heir of the media empire. But it is still not moved to London, where all her direct reports are based.

TV ON THE WRITTEN PRESS

The younger Murdoch has always favoured most cost-effective weapons of television and entertainment company on the traditional print media on which his father founded the empire.

But anger popular and political growth on Messaging voice saga of piracy raised the chances of a delay in the approval of the Government for the submission of News Corp to buy the 61 per cent of BSkyB that it does not already have.

Government of center-right Prime Minister David Cameron had already given informal blessing to the takeover, despite criticism that he gave Murdoch too to media.

Before that the controversy is compounded, formal approval was expected a few weeks. However, a decision now seems to take months. "James Murdoch did not address the situation well." It has certainly did you, certainly by 2008, what was going on, "Peter Burden, the author of a book on the news of the world, stated to Reuters." "The problem is that they were all very faithful to the other, the Murdoch and their people", he said, in reference to the decision by the rear company Rebekah Brooks, a confidant and Chief Editor of the news of the world at the time many of the offences would have occurred.

"James did not grasp the enormity of the situation." A few months ago, he said "we have put in a box now and he is content", and of course he could not have been more wrong. »

Beyond the pure financial concerns, the Murdoch also appear also damaged their once untouchable position in British politics, where the leaders of the effusively openly political support from Rupert Murdoch.

Andy Coulson, former editor of the news of the world who left in January as a spokesman for Prime Minister David Cameron, was arrested Friday on the scandal.

"They do not understand that you cannot assume the kind of power, they have had in this country without actually behave as if you are part of the fabric," said Enders.

"And what it means, it is - if your employee is an employee of the Prime Minister, you have some responsibilities to that employee as a credit for the Prime Minister, and not a discredited." They do not have this connection. »

James Murdoch must show that he does.

(Editing by Kevin Liffey)

Lexus to lose the first luxury U.S. car market place

A name on a Lexus HS 250 h hybrid plate is seen at the Chicago Auto show on February 10, 2010.

Credit: Reuters/John GressBy Rick Popely

CHICAGO. SAT July 9, 2011 2: 11 am EDT

Toyota Motor Corp. (7203.T) to CHICAGO (Reuters) - Lexus brand will end its series of 11 years as the luxury brand top in the US market due to the loss of sales following the earthquake in the Japan and tsunami, said Mark Templin, Lexus Division General Manager.

Templin said sales in the United States Lexus fall 17% to about 190,000 vehicles in 2011.

The United States are the largest market for Lexus.

All the models Lexus, except the RX 350 crossover sport utility vehicle, are manufactured in the Japan.

Templin, has said the plant in Cambridge, Ontario, which makes the RX 350 will be back to full capacity in September.

Most of Japanese plants assemble the Lexus models have already returned full strength.

However, the RX 450 h hybrid SUV will be in full production until October. The hybrid is generally 15-20% of the sales of RX in the US market.

The United States the Lexus sales dropped 38% in June as traders failed to key products. At the end of the month, dealers were approximately half of their normal stock.

"June was at the bottom of the pit, and we turned the corner." We see the rest of the year is much better for us, "Templin said, speaking to journalists at a Lexus media event in Chicago."

Sales of Lexus dropped 18 percent in the first half of 2011 88,010 and German rivals BMW (ATM.)(DE) and Daimler AG (DAIGn.DE) has entered by Mercedes-Benz.

BMW sales increased by 13% to 113,705, and Mercedes-Benz rose by 7 per cent to 110,926. If the results of full year 2011 end as expected, it would be the first time that BMW has rewarded Lexus in the United States since 1997.

Contentée Templin the importance of the loss of the Crown in sales of luxury, and when asked if Lexus can regain first place in 2012, he said.

If we're no. 1 or not, I Don ' t care. We have never focused on that. Because someone else is selling more cars that we will we change our plan mid-year. »

SYNDROME OF BUICK?

Industry analyst Aaron Bragman of automotive Insight IHS said Friday the doldrums to Lexus goes further than the shortage of vehicles. It was suggested that Lexus may suffer stigma even as General Motors Co (GM.)(N) mark during the last decades Buick: car for the elderly.

Bragman said that it would be "a challenge" for Lexus reclaim No. 1 luxury sales in 2012, even with a production full because its range is not as appealing was once, and it relies heavily on the two models, the RX 350 and ES 350 sedan, a spin off of the Toyota Camry.

The RX so far this year represents 45% of sales to the Lexus United States and sedan ES 19 per cent.

"Such as Toyota, they have lost their momentum." They have a buyer of aging basic and many of their dealers are afraid, they become the next Buick. "Their new products have not resonated with younger buyers".

Age median buyer for Lexus is mid-1950s, and Templin said it was comfortable with that because it is a result of high fidelity.

The sportier models, as the sedan and hybrid sedan from CT attract young owners, said Templin.

(Edited by Bernie Woodall; editing by Carol Bishopric)

(This story has been corrected to display the name of hybrid model from Lexus RX 450 h.) Also adjusts citation to show that June was the "bottom of the hollow".)

Toys R Us IPO now expected in 2012: sources

The sign of the Toys R Us store is considered in a suburb of Denver, March 15, 2011.

Credit: Reuters/Rick Wilking

NEW YORK | Friday, July 8, 2011 11: 18 EDT

NEW YORK (Reuters) - the initial public offering of Toys R Us, the largest retailer of toys in the world, is now planned for 2012, two sources told Reuters.

The company filed for an IPO of 800 million dollars in May 2010. He was considered the public entry in the first half of 2011, but delayed its introduction on the stock market after sales of holiday tarnished. Later, it provided an introduction on the stock exchange in July.

In Toys R Us made by the U.S. Securities Exchange Commission process and review, so technically he could launch an IPO anytime he wants - but it is planned to postpone the offer until next year, one of the sources said.

The sources declined to be named as the information is not public. Toys R Us has refused to comment on.

(Reporting by Dhanya Skariachan and Clare Baldwin;) (Editing by Richard Chang)

China June import of lower growth in 20 months

An employee to work at the clothing of Lianfa of Yiwu Yiwu plant, Zhejiang province, June 8, 2011.

Credit: Reuters/Carlos BarriaBy Kevin Yao and Xu Wan

BEIJING. Sun July 10, 2011 5 pm EDT

BEIJING (Reuters) - import growth fall China clearly in its slower rate in 20 months in June in a further proof of the broad impact of monetary tightening on the economy, while a large trade surplus has suggested that capital remain a challenge for the authorities.

The sharp decline in growth in June imports, which fell at an annual rate of 19.3% to 28.4% in May, is related to the concerns of the investor on how quickly the world's second economy slows.

But, one day after data showed June inflation reached a peak of 3 years, analysts took the jump in the trade surplus as a sign that China may have to raise rates further, to rein in prices and to combat the influx of capital.

"The trade surplus rose in June," said Liu Li-Gang, an economist with ANZ. "Us would interpret this means moderation of export and import growth is not large enough to prevent the Government tighten still."

"The large trade surplus means that PBOC will continue to experience of large capital inflows." "It will have this problem of inflow, it is unlikely that they will pause during monetary policy".

A series of indicators in recent weeks have pointed to a moderation in the pace intoxicating investigations Manager of the new controls the export of Taiwan to the Mainland of the growth of China, the purchase.

Bank of China has yet clearly inflation remains a political priority. Most analysts agree that growth resulting from this policy mix will be slower that double-digit rate close to the course of the last few years, but it is little risk of a forced landing.

The Government is due to announce second-quarter economic growth data on Wednesday.

"Imports were below expectations," said David Cohen, Economist at the economy of the Action at Singapore. "We are seeing perhaps a reflection of the loss of momentum to the growth of China." After all, he has led a tightening of policy.

"The numbers are consistent with the slowdown in growth, with the soft landing that many people are looking for."

Last week, the Central Bank raised the interest rate for the third time this year, underlying the confidence of the Government in the economy's capacity to cope with a more restrictive monetary policy.

Sunday data showed June exports rose 17.9% a year ago, slowing a rise of 19.4% in May and pointing to the weakness of overseas demand saw exports and soften new commands in most of Asia.

Exports reached a record of 162 billion in June, while imports for the month were $ 139.7 billion. Who left the country with a trade surplus of 22.3 billion in June, compared to 13.1 billion in May.

The median forecast of economists surveyed by Reuters had exports increase imports increase of 25.0%, resulting in a trade surplus of $ 16.3 billion and 18.7%.

On a basis adjusted to the calendar, expanded exports 16.4% in June of the previous year, while imports jumped 19.2%, said Customs Agency.

Exports rose 3.1 percent in June from may, while imports fell by 3 per cent the month. On a basis adjusted to the calendar, June exports reached 4.2% in may, while imports fell by 2.6% in May.

ENTRANCE TO BREAK POLICY?

China's inflation data have become his most closely watched indicator in recent months as investors look for signs that Beijing is about to change his political position after nine months of constant tightening.

This index for June rose 6.4% a year earlier, slightly above the forecasts of economists for a 6.3% increase, with sharp Monte saved in food, consumer goods and property.

What is worrying, there are signs that proliferated and may persist even if world commodity prices continue to decline in inflationary pressures. The prices of products non-food rose 3 percent in their largest jump since the beginning of the records in 2002.

Analysts are concerned that record prices of pork, a key factor in food inflation in China in recent months, are also likely to facilitate soon - an opinion shared by pork due to a shortage of pork producers.

China has raised rates five times since October, alongside nine increases the ratio of reserve requirement for banks. Many economists believe that Beijing has already fired shot preventive inflation and is near the end of the hardening of the policy.

Indeed, China's stock market has increased and swaps on Earth were priced too more and more in chances reaching rate policy.

A slim majority of analysts interviewed by Reuters this week think that China could raise rates again this year before pat permanent until June 2012.

REBALANCING

At the same time, Beijing has repeatedly promised to restructure its economy to reduce its dependence on exports and investment and the promotion of domestic consumption in their place. As a result, growth in imports has become a bellwether for the strength of Chinese demand.

A slowdown in the growth of exports from China had been planned in response to the slowdown in the US economy and growth in Asia and Europe factory slid to last down in June.

"For the second half of the year, we plan to continue to fall because of the impact of the crisis of European debt, earthquake of the Japan and other factors, the exports", said Tang Jianwei, Economist at the Bank of Communications Shanghai.

The June surplus was the highest in seven months. China trade surpluses have fueled criticism of the partners key commercial who accuse Beijing to give its exporters an unfair boost with a currency many walks.

Despite the more recent data, the surplus commercial from China is on track close to a third consecutive year of 183 billion last year that the Government is trying to rebalance the economy for domestic consumption, based on exports of cut.

"The trade surplus will be maintained in the second half of the year, but domestic demand is still relatively strong." "If we expect a surplus for the year of $ 100 billion," said Tang.

(Other reports by Zhang Shengnan;) (Editing by Ken wills and Vidya Ranganathan)

Pork prices drive inflation in China - CNN

Chinese farmers save their pigs in flood waters after heavy rains hit the northeast of China in June. Last year, the price of pork emerged more than 50% in China.

NEW YORK (CNNMoney) - Think prices rising rapidly in the United States? Inflation goes even more wild pig in China.

China--a broad measure of consumer price index price pay for food, housing, clothing and other common expenses - showed prices rose 6.4% in the 12 months ending in June, the National Bureau of statistics China reported Saturday.

Which marks the fastest rate of inflation since July 2008 and an acceleration in the rate of 5.5% in May.

But unlike the United States, where inflation led mainly by an outbreak of gas prices, economists say China's inflation problem is due to soaring food prices place - namely, pork.

Food, which represents more than one-third of monthly expenses, rose 14.4% to a Chinese person of average year. Prices of meat and poultry are the worst offender in this category, breaking an exorbitant sum 32.3%. Pork prices have increased to 57.1%.

Mark Williams, Senior Economist of China for the economy of the capital, estimates of pork prices only contribute as much as 2 percentage points at the rate of overall inflation in June.

The price of retail of pork has increased 15% over the past four weeks and it is now more than 50% level year - ago, he said in a note to investors.

"A decline in population of pigs of China at the end of the year is now resulting in an increase in the price of pork," he wrote.

That hurts the purchasing power of the Chinese consumers who buy pork, but it is also a good sign that inflation in China is not widespread, said Carl Weinberg, Chief Economist at high frequency economics.

"The price of food are the only thing that have increased substantially," he said. Who told me, that it is not a change in price as a whole. »

The Chinese Government has stated that one of its main economic goals tame inflation at a rate of 4% is for the next five years.

Weinberg and Williams, think that it will miss its target for this year, but the Government will be not too concerned. After the increase in interest rates three times year, including an increase in rates this week, an excess of credit is not the problem.

"Inflation is high not due to excessive loans, the rate of interest being too low, capital inflows or even a recovery in the demand," said Williams. "The increased inflation is simply the result of a cyclical decline in power of pork will be reversed in time."

As for Chinese exports to the United States, Weinberg, said not to worry - rapid rise in food prices is not likely to have a major impact on the export price.

"We want not see an increase in the price of T-shirts in Wal-Mart or iPads at the Apple Store due to inflation in China," he said.

Helena Hong-CNN Beijing contributed to this report

Low numbers of jobs U.S. hit stocks (AP)

LONDON - much lower than expected figures of employment tumbling Friday sent U.S. investors worried that stocks the US economic recovery was grinding to an end.

Statistics of the Department work came under the most conservative and fairly dismal numbers may lower estimates. The US economy added just 18,000 jobs in June, way below the expectations of the market at least 125. The weakness is particularly surprising buoyancy of the private firm ADP payroll report earlier this week.

There was even more disappointed by the news that the may increase has fallen by half more than 25 000 and the unemployment rate rose to 9.2% to 9.1%.

"With U.S. employers adding fewer new jobs in June that the median forecast had planned it is hardly surprising that American and European stock markets register anything other than sharp falls," said Howard Wheeldon, strategist than BGC partners.

The health of the US labor market is crucial for the world economy and announced Friday reinforced recent fears that performs the recovery of the steam.

These fears hit stocks and the dollar hard.

In Europe, CAC-40 the 1.1 percent to 3,935 dragged France and the Germany DAX fell 0.5% to 7,432. The index FTSE of the leading British shares lost 0.7 per cent to 6,013.

Wall Street opened down strongly on the news after strong gains the previous day. The Dow Jones industrial average lost 0.9% at 12,612, while the broader S & P 500 index fell 1 percent to 1,340.

Following the news, the euro recovered some of its earlier against dollars losses, as investors fretted about the State of the economy their venerate yet and reassessed the expectations of how long the US Federal Reserve will keep interest rates low record levels.

"The continuation of the economic soft patch will cause the Federal Reserve to postpone its exit strategy," said Sung won Sohn of California State University.

The currency used by the 17-nation euro zone has been reduced from 0.3% to $1,4322 in early afternoon.

Stocks earlier, Asian rode expectations that the United States would reveal figures which show that its economy was growing. Nikkei 225 Japan gained 0.7% to close at 10,138, while the Hang Seng in Hong Kong index added 0.9% to 22,726.

Chinese ?? actions were more cautious. The Shanghai Composite Index gained 0.1% to 2,797.77, while the Shenzhen Composite index was virtually flat at 1,201.50.

Oil for August delivery reference deleted almost all of its gains of the previous day, falling $1.52 to $97.15 US per barrel in electronic trade on the New York Mercantile Exchange.

Inventory of dive after that June dismal jobs report - BusinessWeek

By DANIEL WAGNER

Stocks are traded lower at noon after a dismal report on the work of stifled market hopes for an economic recovery fast.

The Ministry of labour, said only 18 000 jobs have been created in the United States last month, less than nine months. The full report hopes for a quick recovery after the economy collapsed this spring.

Traders sold stocks, erasing the gains of the week and in the relative safety of government bonds. Yield on the Treasury 10-year note fell to 3.02 percent of 3.19% before the publication of the jobs report.

Shortly before midday, the Dow Jones is down 109 or 0.9%, at 12,611. The & S P 500 is 15 or 1.1 percent, to 1,339. The Nasdaq has lost 30, or 1 percent, at 2,843.