European events as strong as any in world: Tour chief

(Reuters) - Europe's economic plight has not affected the continent's premier golf circuit and the tour still has some of the best events in the world, chief executive George O'Grady said on Tuesday.
The European Tour is increasingly spreading its wings beyond Europe to the Far East in terms of venues and O'Grady is full of optimism for this season despite the move to the U.S. PGA Tour of top performers like world number one Rory McIlroy.
"We have a lot of great tournaments on our schedule in 2013 and we have certain periods of the year where we have groups of tournaments that are as strong as any in the world," O'Grady told the tour website (www.europeantour.com).
"We have had a very challenging five-year period but part of the reason we have managed to retain a lot of our biggest sponsors is the fact the European Tour is a tremendous product for someone looking to spend their sponsorship or touristic dollars."
The tour is poised for a three-week Middle East swing after this week's 2013 opener, the Volvo Golf Champions in South Africa, before visiting countries like India, South Korea and China over the next 11 months.
The first event to be played in Bulgaria, the World Match Play Championship in May, is another highlight for a tour which has been battling against the Eurozone crisis.
"Through our television platforms in key markets, as well as making our events as good as they can possibly be, we bring visibility and credibility. We have had great success in many countries as a result of that," said O'Grady.
"In Ireland, Scotland and Portugal the golfing tourism numbers are growing again.
"You see that in a lot of the countries we visit across the world and I think it shows that if you can get the structure right then we can face the future with optimism."
Less than half of the tournaments on the 2012-13 schedule are due to be played in mainland Europe and O'Grady spoke late last year of his "disappointment" at losing events in Eurozone countries.
O'Grady added there were some sponsor-less tournaments on the schedule that were now owned or promoted by the tour, citing the Hong Kong Open which is absent for the first time since 2001 but will return next season.
However 2013 paints a different picture, said O'Grady.
"Money is one factor in tournaments being a success but if you look at the strongest parts of our international schedule the money is already very strong," he said.
"So, in terms of our top events, I think we are now trying to focus on running the tournaments exceptionally well which we have done for the past year."

Read More..

Veteran broker departures shift $133 billion client assets in 2012

NEW YORK (Reuters) - Brokerages saw top advisers depart in droves last year and shift $132.5 billion in client assets with them, a Reuters tally shows, creating headaches for some Wall Street banks at a time when wealth management is becoming an increasingly important part of business.
Unprecedented signing bonuses, cultural changes linked to acquisitions, a push to cross-sell company products, and a growing charm of joining regional outfits contributed to many of these exits which are likely to continue this year, recruiters and brokers said.
All told, at least 880 veteran brokers and their teams changed firms in 2012, according to the data, which tracks the moves of top individual advisers and teams that manage $100 million or more in client assets. That included the departure of at least 16 $1 billion-plus advisers or teams, a number wealth management recruiters say they usually see over several years, not in 12 months.
Morgan Stanley Wealth Management - the brokerage majority owned by Morgan Stanley and partially owned by Citigroup - felt the brunt of defections in 2012, with the departure of at least 243 veteran advisers who managed more than $39.2 billion. Bank of America Corp's Merrill lost at least 184 advisers who managed more than $28.5 billion.
The two largest U.S. brokerages by headcount each lost at least six teams that managed $1 billion or more in client assets apiece - easily the size of an entire office branch.
"Our strategy is to attract the industry's best talent for our clients, and to size our adviser population to meet market opportunity," Merrill spokesman Matt Card said.
Morgan Stanley declined to comment.
Several major Wall Street banks such as Morgan Stanley and UBS AG are betting on wealth management for steady income and growth, as a weak global economy and financial regulation hit profits from other businesses such as trading and investment banking. At Morgan Stanley, for example, the wealth management unit accounted for 44 percent of third-quarter revenue, excluding one-time charges.
While adviser defections may not immediately make a big dent in the more than $1 trillion in assets the top brokerages manage, the losses can add up over time. Losing $1 billion in client assets, for example, can translate into loss of more than $10 million in annual revenues for a firm.
"We'll start to see some impact on the revenue side of the equation," as bigger advisers continue to depart, said Memphis-based banking analyst Marty Mosby of Guggenheim Partners.
"(Bigger firms) will have to make sure their resources are being applied in the most efficient way possible," and will need to make existing client assets more productive, he said.
U.S. brokerages have already begun to move in that direction, adding incentives to their 2013 pay plans to coax advisers to sell bank products.
Wells Fargo & Co's Wells Fargo Advisors and UBS Wealth Management Americas fared better in terms of recruiting and retaining veteran advisers in 2012. UBS offered some of the richest retention and sign-on bonuses in the industry and Wells benefited from its independent brokerage division, which allows advisers to own their practices. Even so, at least 82 veteran advisers departed Wells and 67 left UBS.
UBS is "always looking at attracting the top advisers," while also making the firm a place advisers want to stay, spokeswoman Karina Byrne said. "Our low attrition rates show that we are succeeding."
Wells managing director Ron Sallett said 2012 was the second best recruiting year for the company's independent brokerage unit since it was founded more than a decade ago. "We think our firm is continuing to position itself in the market as the firm of choice," he said.
BIG BONUSES
Signing bonuses for top advisers are now around 350 percent of the broker's annual revenue, with 180 to 200 percent offered upfront, said Tom Lewis, a New Jersey-based lawyer for Stark & Stark. An adviser who generates about $1 million in annual revenue might receive as much as $2 million on day one from a rival firm.
"They're in a range that we haven't seen approached before," said Lewis, who works with advisers making the transition to a new firm. "It's a long-term investment, yet your short-term profitability suffers."
UBS, for example, said it had a 10 percent increase in compensation commitments and advances related to recruited financial advisers in the third quarter from the year prior. The cost-to-income ratio - a measure of profitability - at UBS's U.S. brokerage was at 86.1 percent at the end of September, compared with 66.5 percent for its global wealth management unit, which doesn't have to offer such bonuses.
Half of the big brokerage advisers who left their firms became independent advisers, joined an independent advisory firm or moved to a smaller firm like Raymond James Financial Inc or Ameriprise Financial Inc, the data shows. They took $35.2 billion in client assets with them.
"Our expectations for 2013 (recruiting) are very promising," said Raymond James' Private Client Group President Tash Elwyn.
These firms offer lower signing bonuses, but advisers who made the move say there are other attractions, such as the ability to focus more on their clients' investment needs rather than also worrying about the company's bottom line.
Departing wirehouse advisers also pointed to concerns about a perceived push to cross-sell bank or company-branded products at their old firms, increased layers of management and cultural conflicts stemming from the acquisition of their firm by larger companies.
Illinois-based advisers Ziv Ohel and William Duncan, who together managed $275 million in client assets at Morgan Stanley, left the firm in mid-November. Ohel said they joined Minneapolis-based Ameriprise because the firm focused more on financial planning and had less of a big brokerage mentality.
Independence is also increasingly attractive to advisers. HighTower Advisors LLC, Focus Financial Partners LLC and Dynasty Financial Partners LLC each lured at least one team with $1 billion or more in client assets.

Read More..

Global shares, oil dip, but growth prospects limit falls

 World stocks and oil prices eased on Monday ending a new year rally as some investors chose to book profits, but signs of a brightening global economic growth outlook limited the falls.
Wall Street looked to set to follow a similar path after the benchmark Standard & Poor's index surged to a five-year high on Friday when data showed employers kept up a steady pace of hiring in December and the vast services sector had expanded.
The numbers compounded the effect from the last-minute deal to avert a U.S. fiscal crisis reached at the start of the year and, along with surveys showing China's factory output rising, have boosted hopes for economic expansion worldwide in 2013.
"Overall, the market's positive trend is still intact," Lionel Jardin, head of institutional sales at Assya Capital in Paris, said of the trend in stocks. "The market is ripe for a pause, but with so much cash on the sidelines, there are a lot of buyers showing up each time we have a dip."
After touching a 22-month peak last week, the FTSE Eurofirst index of top European shares was down 0.2 percent at 1,164 points. Br itain's FTSE 100 index was down 0.3 percent, Germany's DAX indexfell 0.5 percent and France's CAC 40 eased 0.6 percent.
Asia-Pacific shares outside Japan, which reached their highest levels since August 2011 on Thursday, eased 0.1 percent, while Tokyo's Nikkei share average ended down 0.8 percent, just below a 23-month high.
MSCI's broad world equity index was down 0.15 percent but was still not far from an 18-month peak scaled when investors returned to the market after the immediate U.S. fiscal crisis was averted by a political deal in Washington.
Financial shares outperformed the broader market after the Basel Committee of banking supervisors agreed to give banks four more years and greater flexibility than previously envisaged to build protective cash buffers. That means they can use more of their reserves to lend and help economies grow.
The STOXX 600 European banking index was up by 1.5 percent at 172.58 points while the STOXX euro zone bank index gained 2.1 percent.
"This will remove major uncertainties for the banks and the financing of the economy," said Arnaud Poutier, co-head of IG Markets France. "It's positive for banking stocks, but also for the overall market."
Brent crude oil futures slipped 50 cents to $110.81 per barrel after rising 0.6 percent last week.
ECB LOOMS
Investors were turning their attention to the first major policy meetings of the year at the European Central Bank and Bank of England on Thursday. No rate moves are expected but new euro zone economic forecasts are due.
Some analysts expect the ECB to point to the prospect of easier rates early this year after the meeting, contrasting with signals from U.S. Federal Reserve policymakers that it may pursue less accommodative policies in future.
The Bank of Japan is also expected to take major steps to stimulate that country's economy later this month as the new government aims to end deflation and recession.
The possibility of less monetary stimulus in 2013 from the Fed and more from the BOJ sent the dollar to a two-and-a-half year peak against the yen last week. However, profit taking saw it pull back on Monday by 0.3 percent to 87.87 yen.
The euro eased 0.3 percent to $1.3035 but was trading above a three-week low of $1.2998 hit on Friday. Analysts predicted it would stay around these levels until the outcome of ECB meeting is known.
"If the ECB doesn't cut rates we could see a minor uptick in the euro," said John Hardy, FX strategist at SAXO Bank. "The bigger risk going forward, however, is if they hint at the possibility of more easing, which will weigh on the euro."
DEBT STEADY
In the European bond markets, investors scooped up German government bonds after their steep falls last week as expectations changed over the Fed's next move.
Ten-year German cash yields were 2.2 basis points lower on the day at 1.522 percent. Other euro zone bond yields were steady to slightly higher as traders awaited debt auctions by Spain and Italy later in the week.
U.S. Treasury 10-year notes were mostly steady at 1.90 percent after reaching 1.975 percent on Friday in a sell-off fuelled by the expectations of less easy monetary policy this year.
Further moves are likely to be limited due to sales of three-year notes on Tuesday, 10-year notes on Wednesday and 30-year bonds on Thursday.
Gold was off its lows of last week but in line with equities and oil had eased slightly as investors focused on the outlook for U.S. budget talks and the Federal Reserve's quantitative easing programme.
"The current discussion in the gold market is when the Fed would end quantitative easing," said Peter Fertig, analyst with Quantitative Commodity Research.
Spot gold was down 0.1 percent at $1,655 an ounce, though above Friday's $1,625.79, its lowest price since August.

Read More..

Futures slip after S&P hits pre-recession levels

 Stock futures are cooling off after the Standard & Poor's index reached levels last week not seen since the start of the Great Recession.
Dow Jones industrial futures are down 8 points to 13,338. The broader S&P futures have lost 0.80 points to 1,456.90. Nasdaq futures are down a point at 2,712.
Investors appear to be taking some money off the table with the earnings season kicking off Tuesday.
The S&P 500 is now 2 percent higher than it was on election day and on Friday closed at 1,466, the highest since December 2007.
On Monday, Bank of America said it would pay Fannie Mae $3.6 billion and buy back $6.8 billion in loans to settle mortgage claims from the housing meltdown.

Read More..

US troops arrive in Turkey for Patriot missiles

ANKARA, Turkey (AP) — U.S. troops have started to arrive in Turkey to man Patriot missiles meant to protect the NATO ally from potential Syrian warheads, the U.S. military said Friday.
The United States, Germany and the Netherlands are each deploying two batteries of the U.S.-built defense system to boost ally Turkey's air defenses against any spillover from Syria's nearly 2-year civil war. The Patriot systems are expected to become operational later this month.
The Stuttgart, Germany-based U.S. European Command said in a statement that U.S. personnel and equipment had started arriving at Turkey's southern Incirlik Air Base. Some 400 personnel and equipment from the U.S. military's Fort Sill, Oklahoma-based 3rd Battalion were to be airlifted to Turkey over the coming days, while additional equipment was expected to reach Turkey by sea later in January, the Command said.
NATO endorsed Turkey's request for the Patriots on Nov. 30 after several Syrian shells landed on Turkish territory.
Last month, NATO said the Syrian military has continued to fire Scud-type missiles, although none had hit Turkish territory, and said the alliance was justified in deploying the anti-missile systems in Turkey. Ankara is supporting the Syrian opposition and rebels and is providing shelter to Syrian refugees.
More than 1,000 American, German and Dutch troops are to be based in Turkey to operate the batteries. NATO said the Americans will be based at Gaziantep, 50 kilometers (31 miles) north of Syria. The Germans will be based at Kahramanmaras, located about 100 kilometers (60 miles) north of the Syrian border; the Dutch at Adana, about 100 kilometers (66 miles) west of the border.
Navy Vice Adm. Charles Martoglio, the Command's deputy chief, reiterated that the Patriots' deployment is for defensive purposes only and would not support a no-fly zone "or any offensive operation," in Syria, according to the Command's statement.
"Turkey is an important NATO ally and we welcome the opportunity to support the Turkish government's request in accordance with the NATO standing defense plan," it quoted Martoglio as saying.
Syria is reported to have an array of artillery rockets, as well as medium-range missiles — some capable of carrying chemical warheads. These include Soviet-built SS-21 Scarabs and Scud-B missiles, originally designed to deliver nuclear warheads.
Last month, a top military commander from Iran — a key Syrian ally — warned Turkey against stationing the NATO systems on its territory, saying such a move risks conflict with Syria.

Read More..

Church of England ends ban on gay bishops

LONDON (Reuters) - The Church of England has lifted a ban on gay male clergy who live with their partners from becoming bishops on condition they pledge to stay celibate, threatening to reignite an issue that splits the 80-million-strong global Anglican community.
The issue of homosexuality has driven a rift between Western and African Anglicans since a Canadian diocese approved blessings for same-sex couples in 2002 and U.S. Anglicans in the Episcopal Church appointed an openly gay man as a bishop in 2003.
The Church of England, struggling to remain relevant in modern Britain despite falling numbers of believers, is already under pressure after voting narrowly last November to maintain a ban on women becoming bishops.
The church said the House of Bishops, one of its most senior bodies, had ended an 18-month moratorium on the appointment of gays in civil partnerships as bishops.
The decision was made in late December but received little attention until the church confirmed it on Friday.
Gay clergy in civil partnerships would be eligible for the episcopate - the position of bishop - if they make the pledge to remain celibate, as is already the case for gay deacons and priests.
"The House has confirmed that clergy in civil partnerships, and living in accordance with the teaching of the Church on human sexuality, can be considered as candidates for the episcopate," the Bishop of Norwich Graham James said.
"The House believed it would be unjust to exclude from consideration for the episcopate anyone seeking to live fully in conformity with the Church's teaching on sexual ethics or other areas of personal life and discipline," he added in a statement on behalf of the House of Bishops.
The church teaches that couples can only have sex within marriage, and that marriage can only be between a man and a woman.
CONSERVATIVE OUTCRY
Britain legalised civil partnerships in 2005, forcing the church to consider how to treat clergy living in same-sex unions.
The church ruled that a civil partnership was not a bar to a clerical position, provided the clergy remained celibate, but failed to specifically address the issue of when the appointment was of a bishop.
In July 2011 the church launched a review to deal with this omission, at the same time imposing the moratorium on nominating gays in such partnerships as bishops while the study was conducted.
The review came a year after a gay cleric living in a civil partnership was reportedly blocked from becoming a bishop in south London.
It was the second setback for the cleric, Jeffrey John, who would already have become a bishop in 2003 but was forced to withdraw from the nomination after an outcry from church conservatives.
Rod Thomas, chairman of the conservative evangelical group Reform, said the church's move on gay bishops would provoke further dispute.
"It will be much more divisive than what we have seen over women bishops. If you thought that was a furore, wait to see what will happen the first time a bishop in a civil partnership is appointed," he told BBC television.

Read More..

Christmas updates to shine light on UK retail prospects

LONDON (Reuters) - The prospects for consumer spending and the broader British economy will be in focus next week when a host of retailers, including Marks & Spencer and Tesco, report Christmas sales figures.
Many store groups found the going tough last year as consumers fretted over job security and a squeeze on incomes.
With wage rises failing to match inflation and another round of government spending cuts slated for 2013, retailers were expected to strike a downbeat tone on the outlook and say growth will be reliant on internal initiatives.
While grocers traditionally cope better in tough times thanks to their focus on essential goods, they are finding growth hard to come by even as they expand their offering into homewares and other non-food offerings.
Analysts think No. 4 grocer Wm Morrison Supermarkets will, on Monday, post the worst of the Christmas figures out of the food retailers reporting next week.
Sales at Morrison stores open over a year, excluding fuel, were seen down about 2 percent. That would follow a fiscal third-quarter fall of 2.1 percent and partly reflect the lack of an online presence and minimal convenience store presence.
Indeed, the retail sector's best Christmas performers - all helped by a strong online presence - may have reported already.
John Lewis - Britain's biggest department store group, and sister company Waitrose - an upmarket grocer, have both reported record Christmas sales, while clothing retailer Next posted a solid outcome and raised profit guidance.
MARKET LEADER
For retail market leader Tesco, which updates on Thursday, analysts forecast like-for-like sales, excluding fuel and VAT sales tax, to grow 0.5-1.5 percent in its home market, having fallen 0.6 percent in its third quarter.
That said, Tesco is up against a weak comparative - a dismal Christmas performance in 2011 resulted in its first profit warning in 20 years and a move to spend 1 billion pounds ($1.6 billion) on a recovery plan.
While the world's No. 3 retailer may show some progress in its home market, its overseas problems are mounting. Though the group has flagged an exit from the United States, in South Korea - its biggest overseas market, legislation allowing local governments to impose shorter trading hours is hurting. Also, trade in eastern Europe is being hit by euro zone instability.
Sainsbury, Britain's No. 3 grocer, has guided to second-half like-for-like sales growth similar to the 1.7 percent in its first half. For its third-quarter update, expected Wednesday, analysts forecast like-for-like growth of about 0.9 percent.
DISCIPLINED
Though pre-Christmas promotional activity among clothing groups was widespread it appears to have been less severe than in 2011.
"Anecdotally, it was hugely more disciplined than last year," Simon Wolfson, chief executive of Next - Britain's second-biggest clothing retailer, told Reuters on Thursday.
That should bode well for margins at Marks & Spencer, Britain's largest clothing retailer, which updates on Thursday.
Analysts expected M&S to report a 1.5 percent drop in fiscal third-quarter general merchandise sales from British stores open at least a year. That would be a small improvement on a second-quarter decline of 1.8 percent.
However, like-for-like food sales were seen up 0.5 percent, less than the 1.5 percent rise in the previous period.

Read More..