A New Choice for Flying Couch Potatoes

Continental Airlines partners with a rival to offer live television programming.

Protecting investments from steep stock slides

There are ways to minimize losses in a stock market downturn, and you can even profit from one. But each technique, from stop-loss orders to short sales to “put” options, has drawbacks.

Help! I Can’t Sell My McMansion

In these tough times, even the rich find it tough to sell a house.

Chelsea’s Defence Cut Down, Grant Stays Calm

Two-week break and an easy upcoming schedule could give walking wounded
time to heal

LONDON – When they won back-to-back Premiership titles under Jose
Mourinho, Chelsea were well-known as a team who refused to throw in the
towel until the final whistle.

Their campaigns in 2004/05 and 2005/06 were littered with matches where
they grabbed a goal at the death to snatch a point, and at times, a vital
three points.

On Sunday, with new boss Avram Grant in the dugout, the boot was very much
on the other foot for the Stamford Bridge outfit.

Leading Everton 1-0, Chelsea was shocked by a spectacular 90th minute Tim
Cahill equaliser which denied the home side three points and saw the Blues
go five points behind league leaders Manchester United.

It was significant that Cahill’s stylish bicycle-kick was executed without
Chelsea’s regular centre-back pairing of John Terry and Ricardo Carvalho
in attendance, or with Petr Cech in between the posts.

But, despite the mounting casualty list in his defensive department, Grant
insisted yesterday that his side would bounce back and remain contenders
for the title.

Chelsea lost Carvalho during the first-half of the clash with Everton and
the seriousness of the Portuguese international’s back injury would only
be known after a scan, but a defiant Grant said: “We have too many
injuries at the moment, and it is not easy to play without key players
like Terry and Cech, as well as Paulo Ferreira.

“But this is why we have a big squad. We have players who can come in and
replace those who are injured.”

Grant definitely cannot afford to be shorn of three of his biggest
defensive stars for too long. But his brave front is possibly due to the
current two-week domestic break for internationals. It could not have come
at a better time as Chelsea fight to regroup. Besides, the Blues will not
face a stern test for at least a month in the shape of a Champions League
clash.

Indeed, Grant is convinced his team will return to action rejuvenated for
their match with bottom side Derby County on Nov 24.

He said: “I am sure that when we come back, we will quickly start to play
the good football that we have managed to play in our recent matches.”

The trickier Champions League tie follows next with a trip to Rosenborg,
but Grant and his men know they only need a win from either one of their
remaining two Group B games to qualify for the last 16.

Following Rosenborg, Chelsea’s next four games will be at home to
Sunderland, West Ham, Valencia (Champions League) and Liverpool, in a
tricky League Cup quarter-final on Dec 18.

That will be the Blues’ next big test, followed by a trip to Ewood Park
five days later to face Blackburn Rovers in the Premiership.

By this time, Grant will want at least a couple of his big-name defenders
back in the starting XI.

After taking over from Jose Mourinho in September, Grant vowed to create a
Chelsea team that placed more emphasis on attacking flair than that of his
predecessor.

They had plenty of chances to score against Everton to extend their run of
five successive league wins, but Grant’s team found American goalkeeper
Tim Howard in magnificent form.

Said Grant: “When a team wants to play attacking football, it is normal
that they will try to score the second and third goals after they have
scored the first.

“They had one chance and scored – we scored one goal from many chances.

“I am happy with the football, but not with the result. The most important
thing is that we continued to play good football.

“We showed we have a good squad and good players. I am happy.” – Agencies

Gilded Age: The Billion-Dollar Private Home

Mukesh Ambani’s home will have a helipad, health club and 600 servants.

The Tiger Could Lose Its Roar

M’sia needs to work harder and faster if it does not want to be left
behind: Analyst

William Pesek

Those wondering where Malaysia is headed should keep an eye on Mr Tony
Fernandes.

Perhaps no one personifies the promise of Asia’s 10th-biggest economy
better than the 43-year-old entrepreneur. In 2001, he created a budget
airline, beating the odds in an industry dominated by government-linked
companies. AirAsia has been turning heads ever since.

Airline magnate Aristotle Onassis once said the key to succeeding in
business is knowing something others don’t. Mr Fernandes knew that not
only were Asians ready for no-frills carriers, but so were investors.

Mr Fernandes is often called South-east Asia’s answer to Mr Richard
Branson. It seems highly appropriate, then, that the two men teamed to
launch AirAsia X, a long-haul budget carrier that made its maiden flight
this month. Mr Branson’s Virgin Group is among its key backers.

For all his success, Mr Fernandes is a microcosm of why Malaysia’s economy
isn’t on the upward trajectory it could be.

Politicians’ efforts over the years to protect the turf of Malaysia
Airlines (MAS) backfired, leaving Kuala Lumpur lagging behind in the race
for Asia’s travel hub. Malaysia has tied one hand behind its back to help
national champions at the expense of the bigger picture.

“I’m asking this for national interest, not MAS’ interest or that of
anything else,” said Mr Fernandes of his battle to fly from Kuala Lumpur
to Singapore. “The consumers have suffered enough.”

Politicians continue to dither over another national champion:
State-controlled carmaker Proton Holdings. While talks on an alliance with
Volkswagen AG are progressing, the saga is a reminder that Malaysia’s
leaders are wasting time the nation doesn’t have.

In Proton’s case, the exercise is about finding a partner to help revive
sales and return the 24-year-old company to profit. Yet this, like Mr
Fernandes’ fight to expand his innovative airline, is emblematic of how
politicians often don’t grasp that Malaysia’s place in Asia is rather
tenuous.

Malaysia is a remarkable place with incredible potential. Its economy has
achieved great things in the 50 years since independence from Britain.
Once a tropical backwater, Kuala Lumpur is now a modern, skyscraper-filled
city home to the world’s second-tallest buildings, the twin Petronas
Towers.

Yet, the next 50 years will arguably be harder than the last. It wasn’t
one of the original Asian tigers, but Malaysia became one over the years.

However, “the world is moving ahead at a rapid pace and it won’t wait for
Malaysia”, said Mr Razlan Mohamed, chief executive of Malaysian Rating
Corp. The nation “needs to work harder and work faster”.

Ms Chrisanne Chin from MIMS Business School, Malaysian Institute of
Management and INTI University College, puts it this way: “It’s not so
much what Malaysia is lacking, but that China, India, Vietnam and even
Thailand and Indonesia have improved so much they are capable of
leapfrogging Malaysia in another five years because of specific
comparative advantages, from low costs to human capital to technology.”

Human capital is a particular concern. The government needs to do more to
train the leaders of tomorrow and import the talent that companies need to
thrive. It also has to win more of the foreign direct investment flowing
elsewhere in Asia.

There is much backslapping about how the US$147-billion ($213-billion)
economy may expand 6 per cent this year and 6.5 per cent next year. The
real picture can be found in the World Economic Forum’s latest
competitiveness survey, in which Malaysia slipped two spots to 21st place.

A huge obstacle for Malaysia is something that can barely be discussed: A
37-year-old affirmative-action programme favouring the predominant Malay
community.

It alienates non-Malays, limits foreign investment, stifles competition
and keeps the economy from moving toward a meritocracy. Yet, it is a
third-rail issue. Most Malaysians won’t even discuss it without first
looking around to see who is listening.

A sense of political drift doesn’t help. Four years in office, Prime
Minister Abdullah Ahmad Badawi has spent more time trying to solidify the
influence of his political party – the United Malays National
Organisation – than bringing Malaysia’s economy to the next level.

For a glimpse of the future, one could do worse than ask Mr Ramon
Navaratnam, president of anti-corruption group Transparency International
Malaysia and author of the book, Where to, Malaysia?, who has this to say:
“The future is bright, but only if we are honest with ourselves that we
have a lot of difficult work to do … Otherwise, we will see the rest of
Asia pulling ahead and Malaysia walking in place.”

William Pesek is a Bloomberg News columnist. The opinions expressed are
his own.

Former Bayou CFO gets 20 years

Read full story for latest details.

First Votes Cast As Polls Predict Defeat For Howard

SYDNEY – Aboriginal voters cast the first ballots in Australia’s elections
yesterday as the latest polls forecast a landslide defeat for Prime
Minister John Howard.

The votes cast by Aborigines at Kybrook Farm south of Darwin marked the
start of early voting for those unable to make it to polling stations on
election day and for Australians abroad.

The first to cast a ballot, Mr George Huddlestone, said he had voted for
Mr Howard in the last election in 2003 but objected to the government’s
move this year to seize control of remote Aboriginal communities.

“I voted Liberal last time but Howard, he’s changed the rules on us,” Mr
Huddlestone said. “Some things are changing and people are worried for
their families.”

The poll, published yesterday, showed Labour had gained two percentage
points to extend its lead over Mr Howard’s Liberal-National coalition 55
per cent against 45 per cent.

It also showed that Mr Rudd had increased his lead over Mr Howard as
preferred Prime Minister, with backing from 48 per cent of the 1,119
voters polled against 40 per cent for Howard.

Mr Howard refused to comment directly on the poll results, but said he was
“optimistic” he could win a fifth term on the basis of his handling of the
economy.

The poll also showed that Mr Howard, 68, retains a strong lead over Mr
Rudd, 50, on the question of who could best manage the economy. – Agencies

Countrywide posts loss (Reuters)

Reuters – Countrywide Financial Corp, the
mortgage lender that agreed this month to be acquired by Bank
of America Corp, posted a larger-than-expected $421.9 million
quarterly loss on Tuesday, as more homeowners fell behind on
payments.

Taxman Raises Hdb Property Value, Most Unaffected For Now

The annual values of most properties – including HDB flats – are going up,
but while owners of most private homes will be paying more taxes on their
properties next year, HDB flat owners will largely be insulated from the
taxman’s move.

The annual value is the estimated annual rent of a property if it were to
be let. In determining the annual value of a property, the Inland Revenue
Authority of Singapore (Iras) is guided by prevailing market rents.

The property tax rate is currently set at 10 per cent of the annual value
of the property. For owner-occupied homes, a concessionary rate of 4 per
cent applies.

The Iras said the average increase in the annual value of private
residential properties is about 20 per cent. This is broadly in line with
the rise in real estate prices reflected in data from the Urban
Redevelopment Authority (URA).

According to the URA, private home prices were up an average 8.3 per cent
in the third quarter from the previous three months. Compared to the end
of last year, private home prices averaged 22.9 per cent higher.

“Every year the Iras will assess the situation ? They are increasing it
because rentals have gone up,” said Mr Eugene Lim, assistant
vice-president at real estate agency ERA.

“We are already seeing a trend of HDB owners renting their flats out and
the rental market has picked up. In that sense, the Government will look
at ways to ensure those who benefit pay their dues,” said Mr Donald Han,
managing director of property consultancy firm Cushman and Wakefield.

The Housing Development Board (HDB) Resale Price Index rose 6.6 per cent
in the third quarter and was up 11 per cent from the end of last year.

However, most HDB flat owners will enjoy a two-year reprieve from higher
property taxes, even though the Iras will be raising the annual values of
all HDB flats from Jan 1.

“The amount does impact the dwellers, but because there is a system of
rebates and preferential rates applied to home owners, the tax increase
will be mitigated,” Mr Han said. “The increase will only be felt by those
who lease out their premises.”

As part of the offset package for the Goods and Services Tax announced in
Budget 2007, all owner-occupied residential properties will be given an
additional tax rebate of up to $100 per year in 2008 and 2009. As a
result, 90 per cent of all HDB flat owners will not be paying more
property tax next year, the Iras said.

According to the Iras, one and two-room HDB flat owners will not have to
pay property tax next year, as well as 60 per cent of three-room flat
owners. The other 40 per cent of three-room flat owners will pay less tax
than they did this year.

For the four- and five-room HDB flat owners, 15 per cent will have to pay
higher taxes but the increase will be less than $40, the Iras said.

Meanwhile, in Parliament yesterday, National Development Minister Mah Bow
Tan said the Government would not be taking further action to cool the
property market.

Last month, the Government announced that it would scrap the deferred
payment scheme for private property purchases in a move to reduce
speculative buying and stabilise the red-hot real estate market. Mr Mah
said removing the scheme would not affect genuine home buyers.

Mr Mah also assured Singaporeans that there would be enough new housing to
meet the demands of a growing economy and population.

“At the end of the third quarter of 2007, there was a supply stock in the
pipeline of 65,000 units. This, in fact, is higher than the supply at the
end of the second quarter of 56,000 units. If Singaporeans are aware of
these figures – and these are numbers that we put out regularly – there is
no reason for Singaporeans to panic and feel that there is a real shortage
in the medium term.”

Mr Mah added that while the Government would seek to balance the supply
and demand in the long term, its “bias is not to over-regulate or
interfere” with the market.

“We monitor the growth rate of the market in relation to the growth of the
economy and growth is supported by economic fundamentals,” he said.

The National Development Minister added that more sites would be put up in
the Government Land Sales Programme in the first half of next year if
necessary. But this will be done carefully so as not to create an
oversupply situation in the longer term.