Monday, October 24, 2011

Oreck ads falsely claim vacuums killed flu, lawsuit says [Updated]

Oreckphoto

Oreck Corp. claims to build a better vacuum. But the company went too far when it said its Halo vacuum and some of its air purifiers killed virtually all germs, bacteria and viruses, including the flu virus, according to a consumer lawsuit filed in federal court in Los Angeles.

The lawsuit lists two plaintiffs, Roxy Edge of Los Angeles and Linda Gonzalez of Broome County, N.Y., and seeks certification as a class action. The lawsuit accuses Oreck of falsely claiming in television and print advertisements that the Halo vacuum killed “up to 99.9%” of germs and making similar false claims about its ProShield air purifier.

“Defendants’ claims are not adequately supported by credible, scientific testing or other substantiation and are not true,” the lawsuit alleged.

Oreck did not immediately respond to a request for comment.

[Updated at 6:43 p.m.: Oreck Corp. spokesman John Van Mol issued a statement that said the company "does not believe there is any merit to the plaintiffs' attorneys’ case and it intends to vigorously defend the lawsuit."]

In May, the company agreed to pay $750,000 to settle a Federal Trade Commission lawsuit that made similar allegations.

The lawsuit, filed Friday in U.S. District Court in Los Angeles, seeks damages in excess of $5 million.

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L.A. class-action suit seeks $900 million from Full Tilt Poker

24 Hour Fitness faces sexual harassment lawsuit

Texas Roadhouse sought 'young, hot' employees, lawsuit says

-- Stuart Pfeifer

Photo: Oreck Corp. ad for its Halo vacuum. Credit: ConsumerReports.org

New Leader for Liberal Research Group

A veteran of the Obama and Clinton administrations, Neera Tanden, will be taking over as president of the Center for American Progress, a research organization that represents the views of the president’s more liberal, and somewhat disaffected, base.

She will succeed John Podesta, who ran President Obama’s transition team and served as White House chief of staff to President Clinton, on Nov. 1. Mr. Podesta will remain at the organization as non-executive chairman of the board.

In an interview on Monday, Ms. Tanden said she hoped “big ideas,” both from  her organization and other progressives, would help unite the left in the year leading up to the next presidential election. Recent national polls show that Mr. Obama is behind the Republican candidate on a generic ballot.

“There’s a lack of faith in our ability to solve large-scale problems together, and that weakens the progressive cause,” she said. “There’s big hunger for bigger solutions, and some of the reaction we’re seeing in this country is a rejection of the current discourse in Washington.”

She said she believed that Mr. Obama’s recent push for more economic stimulus intended to create jobs may be winning him back more liberal supporters who had felt alienated by his push for austerity measures.

Ms. Tanden is  the chief operating officer at the Center for American Progress, and served as senior adviser for health reform at the Department of Health and Human Services, where she helped shape the Affordable Care Act. She said that despite continuing criticism of the health care legislation passed last year, she did not anticipate that Congressional Republicans would make a serious attempt to dismantle it before the next election.

“There were two moments where Republicans had had levers over the Senate and the White House to dismantle the Affordable Care Act,” she said. “One was the government shutdown, and the other was the debt limit deal. In neither case did they use those levers to destroy the Affordable Care Act.”

New Obama refi plan could get help from Fed

Dudley
Another Federal Reserve policymaker signaled Monday that the central bank may launch a new round of mortgage-bond purchases to boost the housing market.

The comments by New York Fed President Bill Dudley came on the same day that the Obama administration announced a major overhaul of its mortgage-refinancing program for loans owned or backed by Fannie Mae and Freddie Mac.

A new Fed program “would complement the goals of the administration in helping the housing market,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, N.J.

Dudley, speaking in New York on the economy, said that the continued weakness in housing was “a serious impediment to a stronger economic recovery. . . . Mortgage rates are at record lows and house prices no longer appear overvalued on affordability measures. But obstacles to refinancing and access to credit for home purchases are limiting the support provided by low rates to house prices and consumption.”

Noting that the Fed last month decided to shift more of its massive securities portfolio toward longer-term Treasury bonds to pull down long-term interest rates in general -- including mortgage rates -- Dudley said in response to audience questions that the Fed “potentially could move to do more in that direction.”

Recent market speculation has centered on the idea of the Fed printing money to buy another large chunk of mortgage-backed bonds. The idea would be try to push mortgage rates even lower, which could help spur home purchases and refinancings.

On Friday, Fed Vice Chairwoman Janet Yellen said that another large bond-buying program “might become appropriate if evolving economic conditions called for significantly greater monetary accommodation.”

The average 30-year mortgage rate fell to a generational low of 3.94% in the first week of October, but has since edged up a bit, to 4.11% last week, according to Freddie Mac.

Long-term Treasury bond yields have risen since late-September as worries about another U.S. recession have faded, eroding some of the “haven” demand for government bonds. That has helped to put upward pressure on mortgage rates.

The Fed bought $1.25 trillion of mortgage-backed bonds in 2009 and 2010, but it has allowed that portfolio to decline to $860 billion as securities have matured.

Yellen and Dudley are allies of Fed Chairman Ben S. Bernanke. But they face opposition from some Fed officials who believe the central bank already has done enough to boost the economy.

RELATED:

Home loan refis to get easier under new Obama plan

Unit of PMI mortgage insurer seized by regulators

California housing agency forcing foreclosures

-- Tom Petruno

Photo: New York Fed President Bill Dudley speaking in New York on Monday. Credit: Ramin Talaie / Bloomberg News

U.S. has a long way to go to reduce reliance on fossil fuels

Solar panels cover the parking structure at the Applied Materials Inc. Maydan Technology Center in Santa Clara. (David Paul Morris, Bloomberg)

At 407 pages, the U.S. Energy Department's just released Annual Energy Review contains more than you'll ever want to know about the nation's power production and consumption. On the other hand, you'll never be at a loss for words, or facts, on the subject.

Examples abound.

Is per capita household energy consumption in the U.S. declining because of programs emphasizing efficiency? Answer: no. It has remained essentially flat for 38 years, since the Arab oil embargo of 1973.

The reasons? A long-term shift to larger homes requiring more energy has been countered by a population shift to warmer climates in the South and West, requiring less heat. Electronic devices are far more efficient, but there are also a lot more of them around the typical home than ever before.

Will the country move sharply away from fossil fuels in the coming decade? Answer: maybe. Even with mandates for greater use of renewable energy, the nation still has as very long way to go. Energy consumption by source is as follows: petroleum 37%, natural gas 25%, coal 21%, nuclear 9%, renewable energy 8%.

The breakdown on renewables: hydroelectric power 2.5%, wood 2%, biofuels 1.9%, wind 0.9%, waste 0.5%, geo-thermal 0.2%, solar/photovoltaic 0.1%.

What about U.S. energy production by share of source? It's still firmly entrenched in fossil fuels. About 22% comes from natural gas. Another 22% comes from coal. About 12% comes from crude oil. The remainder comes from nuclear (8%), biomass (4%), natural gas liquids (3%) and hydroelectric (3%). Geothermal, solar/PV and wind together amount to just 1%.

What states consume the most energy? Texas is well ahead of No. 2 California on that score. But California, by far the nation's most populous state, shines in a related category: it's fifth among states with the lowest per capita energy consumption, behind New York, Rhode Island, Hawaii and Massachusetts. Texas is among the five states with the highest per capita energy consumption.

ALSO:

Many California solar projects are on track

California has one of every four solar jobs 

California targets tax exemptions for renewable energy firms

— Ronald D. White

Photo: Solar panels cover the parking structure at the Applied Materials Inc. Maydan Technology Center in Santa Clara. Even with new mandates to increase energy from renewable sources, it still supplies only a fraction of the nation's energy needs. Credit: David Paul Morris / Bloomberg

Oreck ads falsely claim vacuums killed flu, lawsuit says

Oreckphoto

Oreck Corp. claims to build a better vacuum. But the company went too far when it said its Halo vacuum and some of its air purifiers killed virtually all germs, bacteria and viruses, including the flu virus, according to a consumer lawsuit filed in federal court in Los Angeles.

The lawsuit lists two plaintiffs, Roxy Edge of Los Angeles and Linda Gonzalez of Broome County, N.Y., and seeks certification as a class action. The lawsuit accuses Oreck of falsely claiming in television and print advertisements that the Halo vacuum killed “up to 99.9%” of germs and making similar false claims about its ProShield air purifier.

“Defendants’ claims are not adequately supported by credible, scientific testing or other substantiation and are not true,” the lawsuit alleged.

Oreck did not immediately respond to a request for comment.

In May, the company agreed to pay $750,000 to settle a Federal Trade Commission lawsuit that made similar allegations.

The lawsuit, filed Friday in U.S. District Court in Los Angeles, seeks damages in excess of $5 million.

RELATED:

L.A. class-action suit seeks $900 million from Full Tilt Poker

24 Hour Fitness faces sexual harassment lawsuit

Texas Roadhouse sought 'young, hot' employees, lawsuit says

-- Stuart Pfeifer

Photo: Oreck Corp. ad for its Halo vacuum. Credit: ConsumerReports.org

Simpler nutrition labels urged for grocery products

Grocery

Supermarket shelves could be getting a nutritional version of the government’s Energy Star label.

A new report ordered by Congress recommends a standardized and intuitive labeling system for food that makes the healthfulness of the product easier for consumers to grasp.

The front of each bottle of sauce, bunch of carrots and every other grocery product should show a simple calorie count of a single serving size, the Institute of Medicine and the Centers for Disease Control and Prevention suggested.

Also, each label would feature up to three “points,” denoting saturated and trans fats, sodium and added sugars, which are associated with conditions such as diabetes, heart disease and obesity. The tags would be developed by the U.S. Department of Agriculture and the Food and Drug Administration.

The more points a product has -- represented by symbols such as stars or checks -- the more healthful it is, according to the report. For example, 100% whole-wheat bread would feature three points, while an oat and peanut bar would get one.

A surge in nutritional data on packages over the last decade has confused shoppers, according to the study, which found that it is “time for a fundamental shift in strategy, a move away from systems that mostly provide nutrition information without clear guidance about its healthfulness.”

Customers in other areas of the food industry are also craving more detail. Chains are beginning to spell out menu items that are meat- or allergen-free. Grazin’, an upstate New York diner, recently became the first U.S. restaurant to be certified “Animal Welfare Approved" because of its use of humanely raised, pasture-fed and locally sourced livestock.

The Grocery Manufacturers Assn. was not impressed. The trade group, representing food and beverage companies, said it would keep backing the Facts Up Front labeling system it launched with the Food Marketing Institute in January.

RELATED:

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— Tiffany Hsu

Photo: A shopper confronts choices in the dairy case. Credit: Spencer Platt / Getty Images

Medical school enrollment on the rise

    PICTURE DOCTOR PATIENT, 10-24-11

For those worried about the shortage of doctors in the U.S. healthcare system, here is a bit of good news: The number of students enrolling in medical schools has reached its highest level in more than a decade.

More than 19,200 people entered their first year of medical school this year, a 3% increase over 2010, according to new data from the nonprofit Assn. of American Medical Colleges.

The number of new medical students has been growing steadily since 2001, when medical schools reported 16,365 first-year students.

Medical schools also are attracting more applicants. The association said 43,919 students applied for admission this year, the largest number in a decade.

The figures show that medicine remains an attractive choice for college graduates in search of fulfilling careers, according to Dr. Darrell G. Kirch, the association’s president.

The potential for large paychecks is not a significant driver of the growing enrollment, Kirch said, noting that medical students can expect to accumulate an estimated $161,000 in debt on average by the time they finish school.

"Today’s college undergrads are very service-oriented," he said. "They are drawn to medicine because they like the notion of meaningful work."

The numbers of applicants and new students from most major racial and ethnic groups increased in 2011, although some of the gains were modest, the association said.

For example, 1,375 African Americans enrolled for the first year of medical school this year, up from 1,350 in 2010. Similarly, 1,633 Latino students entered medical school in 2011, up from 1,539 in 2010.

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Providence partnership with doctors seeks improved care, savings

— Duke Helfand

Photo: Dr. Arturo Pelayo talks with patient Juvanna Fleming at Saint Francis Medical Center in Lynwood. Credit: Francine Orr / Los Angeles Times

 

California housing agency forcing foreclosures

The California Housing Finance Agency is foreclosing on clients even though they are making their monthly payments, a state Senate watchdog group said
A state agency that provides low-interest mortgages is foreclosing on a small number of clients even though they are making their monthly payments, a state Senate watchdog group reported.

The California Housing Finance Agency is foreclosing on homes because their financially strapped owners temporarily rent them out and move into cheaper rental properties, the Senate Office of Oversight and Outcomes said Monday.

The agency, which finances the mortgages through the sale of tax-free bonds, allows borrowers to rent their homes only if they suffer a severe economic hardship, such as losing a job.

That tight restriction was recommended to the agency by its bond counsel prior to the collapse of the state's housing market and the deep recession of 2007-09.

About 350 Housing Finance Agency borrowers rented their homes without permission and 21, so far, have been foreclosed on. Another 186 are being threatened with foreclosure despite staying current on their monthly loan payments, the oversight office said.

According to the report, the agency said it didn't know how many borrowers were denied permission to rent.

The agency did not respond to requests for further comment.

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New FHA certification rules hamper condo sales, refinancing

A health crisis follows mortgage foreclosure crisis

-- Marc Lifsher

Photo: A "for sale" sign on a foreclosed Glendale house in September. Credit: Kevork Djansezian / Getty Images

The Recession in Pink and Blue

Nancy Folbre is an economics professor at the University of Massachusetts, Amherst.

Measured in terms of absolute job loss, men bore the brunt of the Great Recession, hence the term “mancession.” On the other hand, men have fared better than women in regaining jobs during the slight rebound sometimes called the recovery.

Today’s Economist

Perspectives from expert contributors.

Interesting comparison, but gender differences in economic hardship reach beyond employment statistics.

Perspectives from expert contributors.

Many people – even those who live alone – share a portion of their earnings or devote unpaid hours of work to family members, including children and others who are dependent as result of age, sickness, disability or unemployment. Measures of economic hardship should take responsibility for dependents into account.

Women tend to be more vulnerable in this respect than men, primarily because they are more likely to take both financial and direct responsibility for the care of children.

In 2010, according to Census data, about 23 percent of children under the age of 18 lived with mothers but not fathers, about 3 percent with fathers but not mothers and 4 percent with neither parent. In 2007 (the latest year for which data are available), slightly more than half of all custodial parents had formal child support agreements or awards, and less than half of those received the full amount they were due.

Even mothers receiving support from fathers tend to take more responsibility for meeting family needs, intensifying the experience of economic insecurity.

A recent report issued by the Institute for Women’s Policy Research assessed some of the most stressful consequences of a high unemployment rate, based on a nationwide telephone survey conducted last fall in conjunction with the Rockefeller Survey of Economic Security.

The report emphasizes the effects of unemployment on families rather than individuals. More than one-third of respondents reported that they or someone else in their household experienced unemployment during the previous two years. The percentage reached almost one-half for black and Hispanic respondents, and more than half for single mothers.

Unemployment made daily life more difficult for almost everyone touched by it. Still, the gender differences are striking, even among married couples.

Married mothers reported that they were more likely to cut back on household spending than married fathers (80 percent, compared with 66 percent). There was also a noticeable, though not statistically significant, difference between the percentages of married mothers and fathers who reported problems paying their rent or mortgage (31 percent, compared with 26 percent).

Health care anxieties were intense: married mothers were more likely than married fathers to report that they had trouble getting or paying for medical care for themselves or family (34 percent, compared with 17 percent) and that they were worried about the possibility that their employer would cut back health care coverage or increase its costs (43 percent, compared with 34 percent).

Whether single or married, mothers are more directly affected than fathers by cutbacks in public child care provisions resulting from state budget shortfalls and the withdrawal of federal stimulus funds. A new report from the National Women’s Law Center estimates that families in 37 states are worse off under one or more key child care policies in 2011 than they were in 2010.

This emerging pattern of economic insecurity could affect the size and shape of the gender gap in voter preferences. Red may be the Republican color, but over all, pink tilts Democratic.

According to exit polls, unmarried women have typically given more support to Democratic candidates than have married women.

In hard times, however, this “marriage gap” may diminish.

Consumer Confidential: Thomas the Tank Engine bought, Harley recall

Tompic

Here's your maybe-baby Monday roundup of consumer news from around the Web:

—Thomas the Tank Engine, meet Barbie. The company behind everyone's favorite talking train, Hit Entertainment, is being purchased by El Segundo's Mattel for $680 million in cash. Mattel already markets many Thomas & Friends die-cast and plastic toys under a license that extends until 2014. Global sales of those toys are more than $150 million. Mattel says the deal will help combine its own global marketing and distribution capabilities with Hit Entertainment's global programming and licensing expertise. For those without small ones at home, Thomas the Tank Engine is a popular British children's television series that has spawned a variety of tie-ins and toys.

—Wal-Mart has your number ... at least when it comes to prices. The world's largest retailer is announcing a new strategy that it hopes will pull in procrastinators early by giving them a big incentive: a guarantee that they'll get the lowest price no matter when they buy during the holiday season. Wal-Mart says it will be matching prices on many of its products. Shoppers who buy something at a Wal-Mart store between Nov. 1 and Dec. 25, but then find the identical product elsewhere for less, can get a gift card in the amount of the difference. The offer excludes merchandise bought on Wal-Mart's website and some other products, such as groceries.

—Heads up, hog riders: Harley-Davidson is recalling about 308,000 motorcycles to fix a switch problem that can cause failure of the brake lights and possibly even the rear brakes themselves. The company says in documents filed with the National Highway Traffic Safety Administration that brake light switches can be exposed to too much heat from the exhaust system. The heat can cause the brake lights to fail, and the problem also can cause fluid leaks and the loss of rear brakes. The problem affects Touring, CVO Touring and Trike motorcycles from the 2009 through 2012 model years.

— David Lazarus

Photo: Thomas the Tank Engine has a new daddy. Credit: BayBritt Allcroft

Obama administration touts refinancing program as economic boost

Housing and Urban Development Secretary Shaun DonovanObama administration officials touted an overhaul of a program to allow more underwater homeowners to refinance as a boost to the broader economy, although they were unable to project how many people the initiative would help.

"Today’s announcement is a very significant step in moving more families who have met their responsibilities into a position to refinance at significant savings," Gene Sperling, the top White House economic adviser, told reporters Monday.

Sperling and Housing and Urban Development Secretary Shaun Donovan noted that with mortgage interest rates at record lows, a homeowner can save an average of about $2,500 a year by refinancing. The additional money in the hands of a consumer would help stimulate the economy, which in turn would help stabilize the housing market.

"It's the equivalent of a substantial tax cut for these families," Donovan said.

The independent Federal Housing Finance Agency on Monday announced major changes to the administration's 2½-year-old Home Affordable Refinancing Program, which has helped 894,000 homeowners refinance.

The most significant change is to expand eligibility to more people who owe more on their homes than it is worth. The FHFA will remove a limit that prevented participation in the program by borrowers who owed more than 125% of the value of their homes.

Borrowers would have to be up-to-date on their mortgages, with no late payments in the previous six months and no more than one late payment in the last 12 months. Only people with loans owned by seized housing finance giants Fannie Mae and Freddie Mac are eligible, and those loans must have been sold to the firms by May 31, 2009.

The administration officials stressed that the expansion of the HARP program was only one step in dealing with the struggling real estate market, but one that could be taken without requiring the partisan-gridlocked Congress to pass legislation.

White House Communications Director Dan Pfeiffer said President Obama was trying to find ways to help the economy that do not depend on Congress, which has balked at passing his new jobs package. Administration officials are calling the push for such executive action "We can't wait."

Obama will highlight the refinancing rules during an appearance Monday in Nevada, which is one of the state's hardest hit by the foreclosure crisis, along with California and Florida.

"When Congress won't act, this president will," Pfeiffer said.

Sperling said the administration was trying to find the right combination of programs to reverse the foreclosure crisis.

"The president is committed to attacking the housing crisis on all fronts," Sperling said. "This significant effort on refinancing … is an important part of that arsenal but it’s only one part."

RELATED:

Home-loan refinancing to get easier

Obama administration ramps up mortgage effort 

Plan would allow refinancing of some underwater mortgages

— Jim Puzzanghera in Washington

 Photo: Housing and Urban Development Secretary Shaun Donovan. Credit: Bloomberg

 

 

 

Gasoline prices at historic highs for this time of year

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The new normal for gasoline prices continues to drain the incomes of American consumers.

Over the past week, the average price of a gallon of gasoline in the U.S. stabilized, down just 1.1 cents to $3.451 a gallon, according to the AAA Fuel Gauge Report. But that's 22% higher than the old record for this week of the year, which was an average of $2.823 a gallon set in 2007.

The financial burden in California is higher. Although the state's average for a gallon of regular gasoline was unchanged over the past week, at $3.853, that was 22.6% higher than the old record for this time of year -- $3.143 a gallon, first set in 2007 and repeated in 2010.

With the nation still poised to shatter the old record for gasoline spending of $449 billion in 2008 by shelling out as much as $491 billion this year, Phil Flynn, an analyst for PFGBest Research in Chicago, said, "It's like we just can't ever get a break. This has really been a bad year for fuel prices."

There has been some hope that the end of hostilities in Libya might quickly bring down world oil prices, said GasBuddy.com senior petroleum analyst Patrick DeHaan, "but I just don't see it happening."

Oil was rising early Monday based on hope that a solution to the European debt crisis was near. On the New York Mercantile Exchange, crude oil futures for oil for December delivery were up 46 cents to $87.86 a barrel. On the ICE Futures Exchange in London, Brent oil rose 76 cents to $110.32 a barrel.

Analysts say that world demand for refined fuels is driving U.S. gasoline prices, with the U.S. exporting record amounts of fuel. In addition, U.S. refineries are processing more diesel than usual instead of gasoline to meet that global demand.

ALSO:

Fuel costs driving whole price rise

Californians are burning less gasoline

California first to adopt cap and trade

-- Ronald D. White

Photo: U.S. oil refineries are processing more diesel and less gasoline to meet rising global demand, helping to keep U.S. gas prices at record highs for this time of year. Credit: Christina House / For the Los Angeles Times

Electric-vehicle maker BYD opens U.S. headquarters in Los Angeles

Hertz will use this BYD electric shuttle bus at Los Angeles International AirportChinese electric car company BYD has opened its North American headquarters in Los Angeles and said it plans to hire about 150 workers to staff the office.

As part of the opening celebration at its offices on Figueroa Street in downtown L.A., BYD displayed one of the electric shuttle buses to be used by Hertz to transport rental car customers at Los Angeles International Airport.

The BYD eBUS-12 can to run for about 155 miles on a single charge in urban conditions, BYD said.

BYD also showed off what it called an electric “passenger SUV.”

There's no word on when the company might begin selling vehicles in the United States.

"BYD looks forward to entering the U.S. consumer market, though a launch date has not yet been set. Fleet trials of BYD's cars in Los Angeles began in December of last year, and the first electric bus trials are beginning this month," said Micheal Austin, vice president of BYD America.

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Scooter sales zoom

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Halo effect of electric cars starts to shine

-- Jerry Hirsch
Twitter.com/LATimesJerry

Photo: Hertz will use this BYD electric shuttle bus at Los Angeles International Airport. Credit: BYD

Gaddafi and the markets: is it time to buy on the bullets?


How will the death of Col Gaddafi affect investment markets?

How will the death of Col Gaddafi affect investment markets?


After the death of Colonel Gaddafi, investors seeking early exposure to emerging markets are asking whether it is time to buy on the bullets.


But, while the early bird is said to get the worm, it is equally true that the early worm just gets eaten. Risks are high in the Middle East and North Africa (MENA), a region avoided by most emerging markets funds, and the Arab spring might yet turn into an Arab winter.


Andrea Nannini, manager of HSBC Middle East and New Frontiers fund said: “Libya did not really have a proper stock market so it was always peripheral from an investment point of view. The economy has been closed for many decades, so a part from oil and gas investments from the international majors, there was relatively little investment from neighbouring countries.


“Despite the initial enthusiasm, the transition process will likely be long, complicated, and volatile, just as previous examples in Iraq and Egypt have shown. Medium to long-term, there will be be very interesting opportunities in Libya as the reconstruction process unfolds. This will present opportunities for companies investing there.


“Generally we think the Middle East should do relatively well in the current volatile global environment. These countries are benefitting from years of high oil prices which meant they have accumulated vast wealth and can stimulate economic growth without generating fiscal deficits, unlike in Europe and the US. In North Africa we see very strong long-term potential due to the strong demographics and consumer demand story, but see challenges in the short-term due to the political transformation in many of these countries.


“Valuations in the region are cheap and foreign investors are generally under-invested in the region, which partly explains why the region has performed so well in relative terms over the last few months during the volatility in global financial markets.”


But Dan Morris, market strategist at JPMorgan Asset Management said: "I believe the recent events in Libya will not have a major impact on oil prices. Gaddafi's capture always seemed inevitable, so markets had already factored in the return of the country's oil production. Events in Europe are going to be much more influential over the next few weeks."


David Coombs, head of multi-asset investments at Rathbone Unit Trust Management, started building exposure to emerging markets including MENA earlier this year but warned that investors should still treat the asset class with care. He said: “We started to sell down those markets around September 2010, when valuations were looking rich, on a relative basis.


“By December this view had become more or less consensus, and the subsequent uprisings in the MENA region only served to illustrate that a political premium is still required.”


Rising appetite for emerging markets is also reported by Rod Aldridge at Barings Asset Management who said: “We are seeing an increasing number of investors looking for exposure to emerging markets year-on-year and we anticipate this trend will continue given the enormous potential for growth compared to developed markets.


“Clearly investors are seeing the benefit of diversifying their investments as they opt to invest across a number of regions within emerging markets; which is important given each region varies hugely in terms of the risk/reward profile it offers. Investors should always remember that emerging markets can be very volatile and investing in them many not be suitable for everyone.”


That caution was emphasised by leading independent financial adviser Mark Dampier of Hargreaves Lansdown, a long-term emerging markets enthusiast who remains wary of short and medium term risks: “I don't at least yet buy MENA funds as I prefer global emerging markets funds. There will continue to be much social unrest in the MENA region and eventually the Saudis will be hit.


“It is probably still too early to buy most emerging markets. We really need to see interest rates falling but we are getting closer to that point which may occur, perhaps, at end of year.”


Some ethical investors may consider it in poor taste to even talk about profit opportunities that may arise from a bloody revolution, while others believe emerging economies need the developed world’s capital more than its sympathy. For now, though, most emerging markets experts argue it is too early to increase exposure to the MENA region.



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