Forbes: The World's Most Reputable Companies http://goo.gl/mag/3qHRr
Thursday, June 7, 2012
Wednesday, June 6, 2012
F1 updates
F1: Grand Prix News Briefs (Update 2)
Ferrari has denied claims that driver Fernando Alonso is grossly overpaid...
SPEED Staff / GMM | Posted June 06, 2012
Ferrari Denies Alonso Paid EUR 30M: Ferrari has denied claims it pays Fernando Alonso a cool EUR 30 million per season. A French publication called Business Book GP 2012 had claimed the Spaniard is easily F1's highest paid driver, with earnings almost equal to McLaren's drivers put together. "A shame then that it's another case of utter balderdash," Ferrari's anonymous website reporter known as The Horse Whisperer said. The columnist said Ferrari is "always put on top" in money matters, but "the reality is very different." The famous Italian team has also rejected the latest round of speculation about the identity of Alonso's 2013 teammate. When asked if the struggling Felipe Massa will be replaced, president Luca di Montezemolo told CNN: "In this moment my concentration is everywhere except the drivers. It's too early in the season, and we will see after that." Montezemolo said he was pleased to see the Brazilian perform strongly in Monaco recently, but also indicated Massa's place in the Ferrari hierarchy is clear. "I count on him to take off points for Fernando's competitors," he said.GP Circuits Create Union To Influence F1 Rules: Formula One's circuits have created a union designed to give them a greater say on the future of the sport, according to business journalist Christian Sylt. He revealed in the Independent newspaper that the Formula One Promoters Association, created in May, is chaired by Australian Grand Prix chief Ron Walker. Last year, it emerged that —led by Walker —F1's race promoters were threatening to switch to IndyCar because the new six cylinder engines in 2014 will not be loud enough. Now, Silverstone chairman Neil England has confirmed the founding of the F1 circuits' union. "We have historically lacked a coordinated voice, and the Formula One promoters association gives us the opportunity to have that. There are a number of matters of common interest, and I think it is important that those are voiced," he said. The formation of the circuits' union coincides with the negotiations over the next Concorde Agreement. "The circuits' desire to have a say in (the technical regulations) is the driving force behind their decision to unite," said journalist Sylt. Union chairman Ron Walker confirmed: "The circuits are concerned by the constant changing of rules by the FIA which is confusing the fans and affecting ticket sales." He revealed that a survey in March showed that 92 percent of the spectators at Albert Park this year did not understand F1's latest rules.Haug Tips Vettel To Hit Back At Webber: Was Monaco the turning point in Sebastian Vettel's so-far meteoric F1 career? "Not at all," Mercedes' Norbert Haug told the German news agency DPA on Wednesday. Almost two weeks ago in the famous Principality, it was Vettel's teammate Mark Webber who broke through with victory, meaning the Red Bull duo is now level-pegging in the championship. They are just three points from Fernando Alonso's lead. So does Webber's new form represent the turning poing for Vettel? "Sebastian did not win two World Championships by fluke," Haug insisted. Haug is also hoping lucky seven is on Mercedes' side in Canada this weekend. Like Webber, Michael Schumacher is also enjoying a new run of form, having secured the first pole of his F1 comeback in Monaco. Luck, however, has not been on his side in 2012, delivering him just two points so far. That's where lucky seven comes in. If he wins this year, 43-year-old Schumacher would be the unprecedented seventh different winner of the seventh race in a World Championship calendar. The great German has won seven titles, seven Grands Prix in Montreal, and he even carries the number on his silver racer. "The characteristics of the circuit should suit us, and we are counting on our car performing well there," said Schumacher.Massa To Use Monaco Setup In Canada: Although the complete opposite of Monaco, Felipe Massa on Tuesday was bound for Canada with his mind still firmly on the famous Principality. Trapped in a worsening slump since the start of the 2012 season, Massa's tumbling form had triggered speculation the Brazilian was fighting for his career in Monaco. But on those fabled streets, he appeared to turn the corner. "I really liked the car there," the 31-year-old said on Tuesday, "and it was working in the right direction to suit my style, and I hope this positive trend can continue, starting with the race in Canada and then through to the end of the championship." Indeed, Monaco was apparently such a turning point that his engineering team, led by Briton Rob Smedley, intends to use Massa's Monaco car setup as the foundation for this weekend, in spite of the diametrically opposed lines of Montreal's Circuit Gilles Villeneuve. Massa admitted that "the setup required for Monaco is very different to that at other tracks," but "even if the street circuit is unique, we can at least follow the direction we took there and make it work at other tracks. It might not be a normal situation, but maybe it is the best direction to go in to make the F2012 work for me," he added.Glock Back In Game After Season Slump: Still at the back of the grid, Timo Glock is nonetheless heading toward the middle of the 2012 season in a better mood. Earlier this year, still struggling for the third consecutive year to pull Marussia from the back of the pack, the highly-rated German appeared out of sorts. He was at war with his Cosworth-powered car, and being genuinely outpaced by his rookie teammate Charles Pic. "It was oversteering brutally," Glock told Auto Motor und Sport, "and after only a few laps the tires were done." The German suspected there was something fundamentally wrong with his chassis; a feeling confirmed when, at the Mugello test, he drove Pic's race car. Modifications were made for Barcelona, but Glock's problems persisted. "I even started to wonder if I had forgotten how to drive," Glock shrugged. Eventually, the mystery was solved, and a flaw in the rear suspension wishbone mountings fixed. At Monaco, he looked back in the game —once again dominating young Frenchman Pic in qualifying, and lacking just half a second to the nearest Caterham. And Glock's fastest race lap was just three tenths from a Caterham. The next big step is Silverstone, where the 2012 Marussia will enjoy a substantial upgrade. "If the data is right, then this is a really big step," said Glock.Vettel To Appear On Letterman: Sebastian Vettel will appear on David Letterman's famous New York talkshow 'Late Show' next week. The reigning and back-to-back world champion's appearance will be on Monday, the day after the Canadian Grand Prix in Montreal, a spokesman for the Red Bull team confirmed. The first US Grand Prix since 2007 will take place in November at the new Circuit of the Americas in Austin, Texas. Takuma Sato, a former F1 driver, drives for the IndyCar team co-owned by Bobby Rahal and Indianapolis-born Letterman.New Gov't Looking At French GP Revival: The attempted revival of the French Grand Prix is not yet dead in the water. Until former president Nicolas Sarcozy lost the country's recent general election, France looked destined for a spot on the 2013 calendar, with Paul Ricard set to alternate an annual race date with Belgium. But F1 chief executive Bernie Ecclestone admitted in Monaco: "I think maybe the election that has taken place might have put that back a bit. "I think you will have to wait and see if we see more. Only time will tell," said the 81-year-old. New president Francois Hollande had warned that he would "review" the F1 project if elected, his sports minister Valerie Fourneyron adding subsequently that the issue "deserves more attention than ten minutes". Indeed, Fourneyron appears to be honoring her promise to give the project more attention. The sports daily L'Equipe reports that she will meet early this week with Nicolas Deschaux, the president of France's motor racing sanctioning body FFSA (Federation Francaise du Sport Automobile).'Improving' Vettel Happy At Red Bull: After denying rumors of a Ferrari contract, Sebastian Vettel has now played down persistent suggestions he is eyeing a switch to the famous Italian team in the near future. "How will this work if I don't know anything about it?" the German smiled after authoritative British newspapers reported in Monaco that he had signed a pre-contract to move to Ferrari in 2014. But the rumors only gained strength when Red Bull's Helmut Marko confirmed the existence of a clause in Vettel's contract allowing the 24-year-old to leave under certain conditions at the end of 2013. "I'm fine where I am and I have no intention of leaving," Vettel is now quoted by La Presse newspaper ahead of the Canadian Grand prix.
What???
Exercise is no panacea for depression – but it keeps it at bay | Simon Hattenstone http://gu.com/p/385jc
Etf basics
In recent years, exchange-traded funds-commonly referred to as ETFs-have grown in popularity. For many investors, though, ETFs remain something of a mystery. With that in mind, here's an explanation aimed at demystifying ETFs and helping you decide whether they're a good fit for your portfolio.
Generally speaking, you can think of an ETF as a hybrid that blends the investment characteristics of an index mutual fund with the trading characteristics of stock shares.
"Since their inception in 1993, exchange-traded funds have grown rapidly as a convenient, low-cost means of gaining exposure to broad and niche markets," said Joel Dickson of Vanguard Investment Strategy Group.
"At the end of 2001, ETFs held a total of $83 billion in assets. By early 2012, that figure had soared to nearly $1.2 trillion," Mr. Dickson said, citing data from Simfund. "ETFs began as investments that facilitated intraday trading of broad segments of the markets. As time has passed, ETF providers have sliced and diced markets into increasingly smaller fragments."
How ETFs are like index funds Like index funds, most ETFs seek to track specific benchmarks and hold broadly diversified baskets of stocks and bonds. ETFs let you invest in an entire stock market or small segments of it. You can also buy ETFs that represent the entire bond market, international stocks and bonds, or specific industries or market sectors.
While most ETFs follow an indexing strategy, some are actively managed, use borrowed money (leverage), or invest in gold or currencies.
As with any investment, you should do a little homework before you buy. Many ETFs feature expense ratios on par with those of low-cost index funds. For example, Vanguard Total Stock Market ETF had an expense ratio of 0.05% in its 2011 fiscal year. The average expense ratio for ETFs across the industry (0.55%) is far lower than for mutual funds (1.12%), according to Lipper Inc. data as of December 31, 2011.
ETFs can also be very tax-efficient. Like mutual funds, ETFs must distribute income and realized capital gains annually, and these distributions are taxable to investors outside of tax-advantaged accounts. However, thanks to the low-turnover, buy-and-hold nature of the index approach, ETFs-like broad-based index funds-generally tend to distribute only modest capital gains, if any.
"ETFs can also be more efficient than traditional funds at reducing capital gains liability because they've been set up to take advantage of an in-kind redemption process," Mr. Dickson said. "In essence, redeeming shareholders receive securities instead of cash. The fund receives no gains from those transactions. This approach is available to traditional mutual funds as well, but it's not used as often.
"Vanguard developed our unique share class structure, in which the ETF is a separate share class of a traditional mutual fund, with an eye toward tax efficiency," he said. "Combining multiple share classes gives the fund a larger pool of assets, which can lead to broader diversification and lower costs, which in turn can lead to better pre-tax outcomes, in our view.
"This structure also helps us optimize the tax impact of fund redemptions," Mr. Dickson added. "Our goal is to maximize the realization of losses in the traditional share classes and remove positions with large unrealized gains through the in-kind mechanism for the ETF share class."
How ETFs are like stocks As with stocks, ETFs trade on an exchange. Shares can be bought and sold through a brokerage firm at any time during the trading day at the current market price. The net asset value (NAV) of a mutual fund, in contrast, is determined once a day after the market closes.
"Because ETFs trade on an exchange, there are some differences in flexibility in pricing between traditional mutual funds and ETFs," Mr. Dickson said. "With ETFs, if you want to buy only one share, you can buy that share at an intraday price, whereas with a traditional mutual fund there are often minimum investment requirements, and you get whatever the price happens to be at that day's market close, regardless of where the market has gone during the day."
Many investors find the flexibility of ETFs attractive, but there's reason to be cautious about frequent trading.
An ETF's price is determined not only by the securities it holds but by the factors of supply and demand in the market. Thus, ETFs may trade at prices above or below the net asset value of their holdings, meaning you could pay more or less than NAV when buying an ETF, or receive more or less when selling one. (It's worth noting, though that a built-in arbitrage mechanism is designed to keep the price of a domestic ETF share fairly close to its NAV.) There is also the hidden cost of the bid-ask spread-the difference between the price a dealer is willing to pay for a security (the bid price) and the somewhat higher price at which the dealer is willing to sell it (the ask price).
ETFs share additional aspects of stocks' trading flexibility. You can place limit and stop orders, sell short, and buy on margin. Further, many large brokers have eliminated commissions to buy and sell ETFs.
Subscribe to:
Posts (Atom)