NY Post : Kickstarter users fundraise for products already sold on Amazon

What do crowdfunding Web site Kickstarter and online retailer Amazon.com have in common? Too much, critics charge.
Kickstarter fans, who have become a bit prickly over what they feel are too many frivolous campaigns, are seeing another worrisome trend crop up: entrepreneurs turning to the fundraising Web site to develop products that are already available elsewhere.
The latest example of this worrisome trend is the fundraising campaign for a heated butter knife and ice cream scoop from product designer That!
On Friday, the Bellevue, Wash., company launched a Kickstarter campaign seeking $20,000 for its high-tech knife, whose pitch is that it needs neither batteries nor electricity to generate heat.
The problem? The knife officially launched last year and can be purchased on Amazon.com. The knife also was available for sale on the company’s Web site until late last Friday when That! took it down amid criticism.
“This is all new to us. We don’t know what we’re doing,” lamented Howard Chiu, president of That!, when alerted to the criticism. Chiu said the money raised by Kickstarter will fund manufacturing tools needed “get it to mass production mode.”
Later, Chiu said the money also will be used to add a new coating to the knife.
Some Kickstarter backers remain skeptical, however.
“The fact that this is already available through retail outlets makes me rethink my pledge. I think the creator has missed what crowdfunding is,” one backer wrote.
A Kickstarter campaign for a waterproof bible was pilloried for similar reasons earlier this summer.
“I am using new technologies to print the Holy Bible … making them virtually indestructible,” Forever Publishing founder Jared Casey wrote in describing the “Forever Bible.”
However, Bobby Bardin of Bardin & Marsee Publishing, Casey’s publishing partner, readily admits the product is nothing new. “We’ve been making waterproof bibles since 2005,” Bardin said.
Bardin’s waterproof bibles also can be purchased on Amazon.com for around $30 — or $10 less than the price of Casey’s Kickstarter bibles.
Bardin said he has “had plenty of conversations” with Casey’s team about the forthrightness of their Kickstarter pitch. But the publisher declined to comment on whether he will continue to do business with Casey if he gets his Kickstarter campaign back up and running.
Casey, who is connected to another failed Kickstarter campaign, called Radiate, didn’t return requests for comment.
The crowdfunding company declined to comment on the intellectual-property dispute that has halted Casey’s campaign.
Kickstarter fans blame lax, new rules introduced in June for launching campaigns on the site.
“Now that Kickstarter has removed some of their strict guidelines, it allows more lesser quality campaigns,” said Dwight Peters, founder of BackersHub, a Web community for Kickstarter enthusiasts.

FT : Why the opponents of QE have failed to make their case

Why the opponents of QE have failed to make their case
The European Central Bank is the only major central bank in the advanced world that has not implemented quantitative easing – yet. A lot of arguments have been argued in defence of not following the Federal Resere, the Bank of England and Bank of Japan along the path of QE. But their validity is fast diminishing. Here is why QE’s detractors are wrong – possibly dangerously so.

The first argument advanced against QE is that eurozone monetary policy operates mainly through the banking system. The ECB injects liquidity by directly refinancing banks, against collateral. Since the outbreak of the crisis six years ago the maturity of these operations has been gradually extended and the amounts have become unlimited . However, demand for central bank liquidity has fallen recently, in line with the slowdown of the economy and banks’ concern about their capital requirements. As a result, the ECB’s balance sheet has shrunk . QE would allow the ECB to circumvent the bottleneck in the banking system and directly influence interest rates, regardless of maturity.

The second reason given that QE is not needed is that inflation expectations are well anchored and the current reduction in inflation is temporary and largely due to relative price changes. This argument is not any more valid, as inflation expectations have recently fallen below the 2 per cent mark over the short term and medium term horizon. The recent data also show that the objective of price stability is not being achieved even for core inflation.

Reason number three: QE would inflate the ECB’s balance sheet and create the basis for future inflation. Really? Economic literature has clearly shown that there is no direct relationship between the size of the central bank balance sheet and inflation. What matters is eventually the quantity of private money in circulation, which has been quite subdued over the recent years. The fears of inflation have proved wrong and the main concern today is rather on the opposite side.

Reason number four is that QE may distort asset prices and generate bubbles that may burst – with negative effects on the real economy. It is interesting that this argument is pushed by those who also oppose giving the ECB a dual mandate, adding financial stability to the primary objective of price stability. While it is very difficult to identify bubbles, monetary policy cannot achieve two separate goals with only one instrument. It thus has to focus on price stability and do whatever it takes to achieve it. Avoiding bubbles is a task which should be primarily achieved through prudential regulation. The ECB has now been given extensive powers in this field.

The fifth reason is that by purchasing government bonds, QE would violate the statutory prohibition of monetary financing. However, there is an ample legal and economic literature explaining that asset purchases in the secondary markets are a textbook instrument of monetary policy. All other central banks in the world have used and still use such an instrument. It’s not clear why the ECB should be the only exception.

The sixth reason offered up is that the implementation of QE in the eurozone would require purchasing a basket of national government bonds, which could distort relative prices. This argument misses the key point that the main goal of an asset purchase program is to modify the portfolio composition of financial institutions, increasing their liquidity and thus inducing them to invest in new assets or extend new loans. The assessment of the relative risk-return characteristic of these assets remains in the hands of market participants.

Argument number: QE would lower even further the very low interest rates, thus redistributing income away from net savers, which are mainly in Northern Europe. This is wrong factually and analytically. While nominal interest rates have fallen over the last two years, also in Germany, inflation has fallen even more so that real rates have in fact risen. For instance, in 2012 the yield on German government Bunds was on average lower than inflation (1.5 per cent against 2.1 per cent), it is currently higher (1 per cent against 0.8 per cent). Furthermore, nominal yields are low because inflation is low, and not vice versa. If inflation was higher rates would be higher, which suggests that the longer inflation remains low, the longer rates will have to be very low, as the Japanese experience showed.

The eight argument is that QE is ineffective in raising inflation, especially in the absence of structural reforms. This contradicts the long held view – cherished in particular in Germany – that inflation is ultimately a monetary phenomenon. Without structural reforms monetary policy alone cannot stimulate growth, but there are no reasons why it should not be able to achieve price stability, which is a necessary (not sufficient) condition for growth and job creation.

Finally, it is often stated that low interest rates reduce politicians’ incentive to reform. This may be true, but it is not the task of the central bank to create incentives or disincentives for politicians. The central bank is independent because it aims at one key objective, price stability, and is accountable for it. If it starts giving itself political objectives, it risks losing its independence.

As time passes, and the risk of deflation or low flation increases, the arguments which have been raised against QE appear to be weaker and weaker – and ultimately wrong.

(BFW) Taxi Organization Wins Ban Order Against Uber Service in Germany

Taxi Organization Wins Ban Order Against Uber Service in Germany
2014-09-02 06:56:45.248 GMT


By Karin Matussek
Sept. 2 (Bloomberg) -- Uber liable to payments up to
EU250,000 in cases of violation.
* Uber drivers need license under German law
* Ruling was issued under emergency proceedings without
hearing Uber’s arguments; Uber can oppose the ruling
* Uber German representatives didn’t immediately respond to
request for comment
* Link to court document dated Aug. 25 {http://bit.ly/1x4fiXq}



Link to Company News:{0084207D US <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the reporter on this story:
Karin Matussek in Berlin at +49-30-70010-6218 or
kmatussek@bloomberg.net

To contact the editor responsible for this story:
Cornelius Rahn at +49-30-70010-6212 or
crahn2@bloomberg.net

(BFW) EU Autos’ Consensus Too High, Prefer VW vs Suppliers, Exane Says

EU Autos’ Consensus Too High, Prefer VW vs Suppliers, Exane Says
2014-09-02 06:30:36.248 GMT


By Brian Lysaght
Sept. 2 (Bloomberg) -- European autos’ 2015 growth
expectations look too high, best to buy selectively on weakness,
says Exane BNP Paribas in note dated yday.
* 2015 sector EPS ests. cut ~10%, global vehicle demand growth
forecast lowered to 3.5% vs previous 5.5%; Europe, China
remain “sweet spots”
* Prefer automakers to suppliers, where valuations are high
* VW raised to outperform from neutral; see solid earnings,
lack of bad news, attractive valuation
* Valeo cut to underperform from neutral; Continental and
Faurecia both cut to neutral from outperform: Exane BNP
* See yday: EU Autos Underperform in Aug.; Rheinmetall, Nokian
Renkaat Slide

Link to Company News:291187Z FP <Equity> CN <GO>
Link to Company News:F IM <Equity> CN <GO>
Link to Company News:PC IM <Equity> CN <GO>
Link to Company News:UG FP <Equity> CN <GO>
Link to Company News:RNO FP <Equity> CN <GO>
Link to Company News:EO FP <Equity> CN <GO>
Link to Company News:FR FP <Equity> CN <GO>
Link to Company News:ML FP <Equity> CN <GO>
Link to Company News:GKN LN <Equity> CN <GO>
Link to Company News:NRE1V FH <Equity> CN <GO>

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net

WSJ : Heady U.S. IPO Market Rolls Into Autumn

A busy initial-public-offering market is warming up for autumn.

Chinese e-commerce giant Alibaba Group Holding Ltd. plans this month to begin a marketing roadshow for what could be the largest IPO ever, potentially raising more than $20 billion. New York office landlord Paramount Group Inc. filed preliminary paperwork last week for what may be the largest-ever debut by a real-estate investment trust. Online-storage startup Box Inc. and consumer-credit upstart LendingClub Corp. also are expected to price offerings in coming months.

The anticipated flood would cap off the busiest period for new U.S. share listings in decades. Companies this year have raised $46.4 billion, the most in the first eight months of any year since 2000, according to data provider Dealogic.

"We still have a ton in the hopper, and I think people are optimistic about being able to execute deals after Labor Day," said Marc Jaffe, co-chair of the global capital-markets practice at law firm Latham & Watkins LLP.

U.S. stocks' climb to record highs is affording companies an opportunity to sell shares at attractive valuations. Money managers say many IPOs look like good bets. Some feature rapid expansion in profit or sales and offer new ways to bet on trends like the emergence of cloud-based business software or increased U.S. energy production thanks to the shale-drilling boom.

"If you have a good growth opportunity, investors are there," said Scott McNeill, chief financial officer of Dallas-based oil driller RSP Permian Inc. RSPP +2.66%

The company and its early investors sold a combined $744 million worth of stock in a January IPO and a "follow-on" stock offering last month. RSP Permian is looking to finance West Texas oil wells without taking on too much debt.

IPOs further benefit from a perception among many investors that other assets, including bonds of all types, are fully valued following sharp rallies.

"With interest rates low and with good corporate-earnings growth and nowhere else to invest, risk appetite is alive and well," said Matt Litfin, who helps oversee $4.6 billion as a portfolio manager at William Blair Funds.

To be sure, these deals carry their share of risk. Companies often go public at an early stage, when their sales and profit outlooks are particularly unclear.

This year, IPOs are attracting a higher price tag relative to their sales than in the past. In 2014, companies have fetched a median IPO price 8.2 times their latest year's sales, versus a median price-to-sales ratio of 3.6 in the previous 12 years, according to data compiled by University of Florida professor Jay Ritter, who researches IPOs.

That is in part because this year has featured a disproportionate share of IPOs by biotechnology companies, which often go public without meaningful revenue. Excluding biotech firms, this year's IPOs have fetched a median price-to-sales ratio of 4.2 times.

Some market watchers say the IPO boom has thinned the ranks of attractive companies, particularly in hot sectors such as technology.

"Maybe a year and a half ago, I had eight to 10 [prospective IPOs] that I was heavily anticipating. Now I only have three or four," said Tony Ursillo, technology equity analyst and portfolio manager at fund firm Loomis, Sayles & Co., which oversees $221 billion.

Since IPO activity accelerated last year, some onetime darlings have fallen from grace. Advertising-technology provider Rocket Fuel Inc. FUEL +3.69% 's stock rallied as much as 148% in the months after its September 2013 IPO, but on Friday the shares closed 44% below their IPO offer price.

Market participants said the rally in these so-called momentum stocks was driven by short-term-oriented bets that their share-price gains alone would attract further buying. Many of these stocks sold off sharply this March and April.

Fund managers stress that companies going public now generally are more solid than in the late 1990s and early 2000, when a host of dot-com companies, with little more than a marketing plan and a catchy name, went public.

"One thing we've seen this year is a good diversity across the business, and we'd expect that to continue," said Jeffrey Bunzel, head of equity capital markets for the Americas at Deutsche Bank AG.

The health-care sector, which has accounted for the largest share of IPO activity of any industry in the past year, also represents the biggest share of the public backlog, according to Dealogic.

Also on the horizon is a slate of big energy deals, driven by surging production on U.S. soil. For one, Royal Dutch Shell RDSA.LN +0.62% PLC plans to split off some oil-pipeline assets into a type of high-dividend-paying company called a master limited partnership, following similar moves by Marathon Petroleum Corp. MPC +0.25% and Valero Energy Corp. VLO -0.04% in recent years.

Phillips 66 PSX +0.47% Partners LP, an MLP spun out of refiner Phillips 66 last year, has seen its shares rally 222% since its July 2013 IPO. Those were among the biggest share gains among companies that went public in the U.S. last year.

"Treasury yields are low, and people still need income," said Scott Moore, manager of the $30 million Buffalo Dividend Focus fund.

Mr. Moore said participating in IPOs has bolstered his fund's performance this year. He declined to name specific stocks, but his fund's holdings earlier this year included Midcoast Energy Partners MEP +3.54% LP and EQT Midstream Partners EQM +0.37% LP, two MLPs that have seen big share-price gains, according to Morningstar.

Corrections & Amplifications

In 2014, companies have fetched a median IPO price 8.2 times their latest year's sales, versus a median price-to-sales ratio of 3.6 in the previous 12 years, according to data compiled by University of Florida professor Jay Ritter. His data also showed that excluding biotech firms, this year's IPOs have fetched a median price-to-sales ratio of 4.2 times. A previous version of this article misstated that the ratios were averages, not medians.