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July 7, 2011

Yemen clashes kill 7 Islamists, 1 soldier

Filed under: economics, money — Tags: , , , — Gladiator @ 4:04 am

Yemeni security forces clashed with Islamist fighters near a southern town overrun by militants, leaving seven Islamists and a soldier dead, officials said, as tens of thousands staged rallies across Yemen calling for the president to step down.

Security across the impoverished nation in the southern corner of the Arabian Peninsula, home to an active al-Qaida branch, has largely collapsed since the uprising seeking to oust President Ali Abdullah Saleh broke out in February.

Islamist fighters seized Zinjibar and another town in the southern Abyan province earlier this year, and Yemeni troops have sought to push them out.

Wednesday’s clashes broke out when Islamist fighters attacked an army base west of Zinjibar, but were repelled.

Yemen’s Defense Ministry said in a statement that seven Islamists were killed and two arrested during the attack. Medics said one soldier was killed and three injured in the clashes.

More than 54,000 Abyan residents have fled the fighting, said Ahmed al-Kohlani, a state minister. He said many relocated to the port city of Aden, where schools were turned into shelters.

To the west, near the city of Taiz, medical officials said two soldiers were killed in clashes with armed tribesmen. Taiz is a hotbed of opposition protests.

The fighting raged in different areas outside the city throughout the day Wednesday, with government forces firing heavy artillery at positions held by tribal fighters free credit score online. Military officials said the soldiers were killed when tribesmen attacked a checkpoint. Eyewitnesses elsewhere said tribal fighters set fire to three military vehicles.

Later Wednesday, mortars hit a residential area in Taiz, killing a civilian and injuring eight, a security official said.

Also Wednesday, port officials in the port city of Aden said pirates seized an oil tanker off Yemen’s coast before Yemeni and international forces intervened and freed the ship. The ship had left the Saudi port of Jiddah and was heading for Sri Lanka, flying a Panamanian flag, the officials said.

All officials spoke on condition of anonymity because they were not authorized to brief the media.

There have been near-daily protests demanding that Saleh step down. The president has been in Saudi Arabia since June 5, undergoing treatment for injuries sustained in an attack on his presidential compound.

On Wednesday, an opposition statement accused him of trying to create chaos in Taiz and in the province of Abyan. The statement alleged that Saleh pulled his security forces from several cities in Abyan, enabling Islamic extremists and al-Qaida-linked groups to exploit the turmoil and take control.

Source

July 5, 2011

Hacking into slain girl’s phone shocks UK leader

Filed under: economics, news — Tags: , , , — Gladiator @ 1:08 pm

Prime Minister David Cameron said Tuesday he is shocked by allegations that a British tabloid hacked into the cellphone of a murdered schoolgirl after she went missing.

“If they are true, this is a truly dreadful act and a truly dreadful situation,” Cameron said about the latest hacking allegations against the News of the World.

“What I’ve read in the papers is quite, quite shocking, that someone could do this actually knowing that the police were trying to find this person and trying to find out what happened,” he added.

The prime minister spoke while on a brief trip to Afghanistan as the phone hacking scandal in Britain deepened with claims that the tabloid’s intrusion into the missing girl’s voicemail system may have disrupted the U.K. police investigation.

The case involves charges that the newspaper’s representatives broke into the voicemail of 13-year-old Milly Dowler when she was first reported missing in 2002. She was later murdered by a nightclub doorman.

Lawyer Mark Lewis, representing Dowler’s family, said he plans to sue the tabloid, which is at the center of the long-running scandal that involves widespread hacking into the voicemail systems of celebrities, sports figures and aides working with the royal family.

Lewis said the parents were given hope that their daughter was alive because messages on her phone had been deleted _ allegedly by the tabloid’s representative.

“It is distress heaped upon tragedy to learn that the News of the World had no humanity at such a terrible time,” he said. “The fact that they were prepared to act in such a heinous way that could have jeopardized the police investigation and give them false hope is despicable.”

The tabloid’s publisher, News International, released a statement Monday saying the matter is of grave concern and promising to cooperate with investigators. The publishers have already apologized and reached financial settlements in a number of phone hacking cases.

A private investigator and a royal editor who worked for News of the World were jailed in 2007 for tapping the phones of royal household staff. Five more people have been arrested since a fresh police investigation began in January.

Source

June 30, 2011

Trade forum weighs Kodak patent dispute with Apple

Filed under: economics, term — Tags: , , , — Gladiator @ 4:20 pm

Embattled photography pioneer Eastman Kodak Co. is nearing the end of a high-stakes patent-infringement fight with smartphone giants Apple Inc. and Research in Motion Ltd.

The 131-year-old Rochester, N.Y.-based company argued in a January 2010 lawsuit that image-preview technology it patented in 2001 was infringed by iPhone maker Apple Inc. of Cupertino, Calif., and BlackBerry maker Research in Motion Ltd. of Ontario, Canada.

Chief Executive Antonio Perez estimates Kodak could draw up to $1 billion from its deep-pocketed rivals if it gets a favorable ruling Thursday before the U.S. International Trade Commission in Washington, D.C.

Because the federal agency can block imports of patent-infringing products, Apple and RIM could be forced to spend hundreds of millions of dollars in licensing fees to bring in smartphones made overseas.

Both Apple and RIM have declined to comment on the case.

A triumph for Kodak would also lift some pressure on the maker of cameras, film, photo kiosks and inkjet printers as it struggles to redefine itself as a 21st-century powerhouse in digital imaging.

Its dispute with Apple and RIM centers on technology Kodak created for extracting a still image while previewing it in the camera’s LCD screen. In 2009, the trade commission ruled that South Korean mobile phone makers Samsung Electronics and LG Electronics infringed the same patent, resulting in $964 million in payouts.

Kodak has amassed more than 1,000 digital-imaging patents since the 1970s, and almost all of today’s digital cameras rely on those inventions. It has licensed digital technology to at least 30 companies, including mobile-device makers such as Motorola Inc. and Nokia Corp.

Mining its rich array of inventions for repeated cash infusions has become an indispensable tactic driven in large part by Kodak’s long and painful digital turnaround.

Since 2004, Kodak has reported only one full-year profit _ in 2007 _ and anticipates another annual loss this year before crossing back to profitability sometime in 2012. It has trimmed its work force to 18,800 from 70,000 in 2002.

Kodak has a promising array of new businesses, but it needs to tap other sources of revenue before investments in those areas have time to pay off.

It is hoping four growth businesses _ consumer inkjet printers, high-speed commercial inkjet presses, workflow software and packaging _ will more than double in size to nearly $2 billion in revenue in 2013, accounting for 25 percent of all sales.

Source

May 26, 2011

Energy prices held back growth in first quarter

Filed under: economics, money — Tags: , , , — Gladiator @ 8:52 pm

High gasoline prices, government budget cuts and weaker-than-expected consumer spending caused the economy to grow only weakly in the first three months of the year.

The Commerce Department estimated Thursday that the economy grew at an annual rate of 1.8 percent in the January-March quarter. That was the same as its first estimate a month ago.

Consumer spending grew at just half the rate of the previous quarter. And a surge in imports widened the U.S. trade deficit.

Most economists think the economy is growing only slightly better in the current April-June quarter. Consumers remain squeezed by gas prices, scant pay increases and a depressed housing market.

Analysts estimate that growth has accelerated slightly to around 2.5 percent in the current April-June quarter. For the entire year, they think the economy will grow around 3 percent. That would be little changed from the 2.9 percent growth in 2010.

Also Thursday, the government said more people applied for unemployment benefits last week. It was the first increase in three weeks and evidence that the job market remains sluggish.

The number of people seeking benefits rose by 10,000 to a seasonally adjusted 424,000. Applications are above the 375,000 level that’s consistent with sustainable job growth. Applications peaked at 659,000 during the recession. Employers stepped up hiring this spring, but some economists worry that rising applications indicate hiring is slowing.

Economists had been more optimistic when the year began. They assumed that a cut in workers’ Social Security taxes, which raised take-home pay, would boost consumer spending. And new business tax breaks were thought likely to spur business spending.

But political upheaval in the Middle East and North Africa sent energy prices soaring. The result was that consumers had to pay more for gas, leaving less money to spend on other items.

The government’s revised estimate for gross domestic product _ the economy’s total output of goods and services _ showed consumer spending growing at an annual rate of just 2.2 percent. That’s sharply down from an initial estimate of 2.7 percent.

Consumer spending, which accounts for 70 percent of economic activity, had grown at a much faster 4 percent rate in the October-December period.

The GDP revision showed that the government sector is dragging on growth. Government spending fell at an annual rate of 5.1 percent. Federal and state and local governments have cut spending to battle budget deficits.

Economists expect government spending to remain weak. They note that Congress will likely slash spending to try to shrink $1 trillion-plus budget deficits.

Exports grew faster than previously estimated last quarter _ a brisk 9.2 percent rate. But imports grew even faster _ at a 9.5 percent rate _ causing the U.S. trade deficit to widen. A higher trade deficit subtracts from growth.

Spending by companies on equipment and software grew at a solid rate of 11.6 percent. Economists expect that to continue as companies take advantage of one-year tax write-offs for such purchases.

David Wyss, chief economist at Standard & Poor’s in New York, said he thinks the economy will grow at an annual rate of 2.5 percent in the current quarter. Wyss said he expects growth to strengthen slightly to around 3 percent in the second half of this year.

In part, that’s because the U.S. manufacturing supply disruptions caused by the Japanese earthquake and nuclear crisis in March should ease. And auto plants and other factories get back to full production.

Still, analysts think the economy may not be able to exceed 3 percent growth for the full year.

“There are just too many headwinds for the economy to fight against at the moment,” Wyss said.

Source

May 23, 2011

UK lawmakers criticize Kraft’s Cadbury deal

Filed under: Audit, economics — Tags: , , , — Gladiator @ 3:00 pm

British lawmakers said Monday they still have “significant concerns” about the takeover of chocolate maker Cadbury by Kraft Foods Inc. _ more than a year after the controversial deal.

The Business, Innovation and Skills Select Committee also strongly criticized Kraft’s chief executive Irene Rosenfeld for refusing to appear before parliamentary hearings into the takeover.

The report _ titled “Is Kraft working for Cadbury?” _ said Kraft’s attitude to the inquiry “steered close to a contempt” of the House of Commons.

It also chastised the U.S. food group for failing to accept criticism from Britain’s takeover market regulator of its U-turn on promises to keep open a British factory.

Kraft’s purchase of Cadbury for 11.5 billion pounds in February 2010 caused much consternation in Britain, where it is a much-loved brand, and kicked off a government review of foreign takeover rules.

Rosenfeld did not make her first visit to Cadbury’s historic base in Bournville, England, to meet management and employees until October 2010.

She also refused requests from lawmakers to appear at hearings either in person or via video link to give assurances about future job levels at Cadbury, instead sending Executive Vice President Marc Firestone to face hostile questioning from lawmakers.

Both lawmakers and the public were further enraged when Kraft backtracked on its plans for Cadbury’s Somerdale plant in western England. During the long and bitter takeover battle, Kraft said it would save the Somerdale plant and 400 associated jobs, a decision that would have reversed earlier plans by Cadbury to close the factory and move production to Poland.

However, shortly after Kraft completed the deal in February, it said the plant would close by 2011.

“That sorry episode overshadowed what could have been a positive discussion on the future of Cadbury under Kraft’s ownership,” the committee said in its report payday loans guaranteed no fax. “In its correspondence with the committee, Kraft in our view steered close to a contempt of the House. We trust that that will not be repeated.”

The committee said it remained concerned on two fronts: Kraft’s commitment to British Cadbury brands given strategic decisions are being made from Kraft’s European headquarters in Zurich, and the company’s apparent lack of consultation with union leaders about pay and conditions for workers.

“One year on from Kraft’s predatory purchase of Cadbury the workers are still none the wiser about the company’s commitments to its U.K. businesses,” said Jennie Formby, national officer of the Unite union. “In fact, we now have less information about the company’s current state and future intentions than before the takeover.”

“Workers look at Kraft’s horrendous multi-billion debt, consider its record in other countries where jobs have gone, plants have shut and wages have been cut, and rightly worry about what the future holds for them,” Formby added.

However, the report said the committee was “encouraged” by Kraft’s promise to continue investing in Cadbury, adding that lawmakers understood that no further jobs would be axed in Britain.

“Whilst Kraft did not extend its undertakings on jobs, the strong indication to us was that the extent of investment at Bournville and other sites would only make sense alongside retention of employment levels in the U.K.,” the report said. “We trust that our interpretation is correct. If it is not, we shall expect any change in the position to be made public by Kraft at the earliest opportunity.”

Source

May 17, 2011

Nasdaq, ICE drop bid for NYSE

Filed under: economics, finance — Tags: , , , — Gladiator @ 3:16 am

LONDON

February 27, 2011

Swiss government freezes Gadhafi’s assets

Filed under: economics, uk — Tags: , , , — Gladiator @ 6:00 pm

Switzerland’s government has moved to freeze any assets in the country’s banks that might belong to Libyan leader Moammar Gadhafi, the Swiss Federal Department of Foreign Affairs said Thursday.

"The Federal Council [Bundesrat] has decided to freeze any assets of Moammar Gaddafi and those surrounding him, in Switzerland, with immediate effect," the Swiss Federal Department of Foreign Affairs said in a statement.

The move comes after ten days of protests that have lost Gadhafi control of eastern Libya and led prominent members of his own government to defect and join demonstrations.

Gadhafi has shown no signs that he’s ready to give up the post he has held for 42 years Internet Payday loans.

It was not immediately clear what assets, if any, Gadhafi keeps in Switzerland.

For the Swiss government, it’s a case of deja vu, as the country moved earlier this month to freeze the assets of Egyptian President Hosni Mubarak and his family, following protests in that country that led to his resignation.

The Swiss banking system is known for its secrecy. But in recent years, the banks have made concessions in the interest of providing more transparency. 

Source

February 13, 2011

GM tries to entice lease holders to buy new cars

Filed under: economics, usa — Tags: , , , — Gladiator @ 3:27 am

General Motors Co. is offering to waive the last three payments on existing leases if holders buy a new car, adding an incentive onto deals that last month exceeded offers made by rivals.

The promotion began this month and is valid on most models with leases that expire between now and Aug. 31, according to the company.

GM raised incentive spending in January by 16 percent to an average of $3,663 per vehicle, the highest among major carmakers, according to researcher Autodata Corp. GM sales outpaced the industry that month.

GM said in a video presentation for its initial public offering in November that it intended to offer fewer incentives that crimped margins and created an impression that price was the main selling point. Early-return leasing deals may conflict with that pledge, said Jessica Caldwell, an analyst at Edmunds.com.

“I hope they’re not walking down that road,” Caldwell said.

Sales at Detroit-based GM rose 22 percent last month, topping the industry’s 16 percent gain. Don Johnson, GM’s vice president of U.S. sales, said during the company’s monthly sales conference call that the company would begin discussing incentives “directionally” rather than giving specific data on a month-to-month basis.

“I am not seeing any internal behavior that suggests we have gone back to old ways,” Rick Scheidt, GM’s vice president of Chevrolet marketing, said earlier this week at the Chicago Auto Show.

“It’s still way too close to the bankruptcy for us to be sliding back into bad habits. We know everybody’s watching guaranteed fast personal loans.”

GM is being smart about incentives, said Duane Paddock, who owns Paddock Chevrolet in Kenmore, N.Y. His dealership advertises a Chevrolet Cruze compact for $119 a month and the Chevrolet Equinox sport utility vehicle for $219, including other incentives.

The promotions fend off Honda Motor Co. and Toyota Motor Corp., both of which have drawn customers away with attractive lease offers, Paddock said.

Toyota, which halted deliveries a year earlier due to a recall, raised incentive spending in January by 24 percent to an estimated $1,962 a sale. Honda boosted discounts 41 percent to $2,016. GM had increased its promotions by $498, or 16 percent.

The incentives may be GM’s way of signaling it’s back in the leasing business after spending $3.3 billion last year to buy General Motors Finance, said Nicholas Colas, chief market strategist at BNY ConvergEx Group in New York.

“I don’t think these incentives have as much to do with overall discounting as they have to do with messaging to the marketplace,” Colas said.

Leasing was about 14 percent of GM’s deliveries in January, up from less than 5 percent during the recession, Johnson, the U.S. sales chief, said. GM remains below the industry average of 20 percent, he said.

GM’s leasing partners also include Ally Financial Inc., formerly known as GMAC Financial Services, and served as the captive lending arm of the automaker’s predecessor.

Source

January 24, 2011

U.S. Jobs Outlook Rises to Decade High, Survey Says - Bloomberg

Filed under: Uncategorized, economics — Tags: , , , — Gladiator @ 4:16 pm

U.S. companies’ employment outlook improved to a 12-year high this quarter after sales strengthened and economic growth picked up, a survey showed.

The percentage of businesses expecting to increase payrolls in the next six months exceeded the share projecting more firings by 35 points, the most since the question was first asked in 1998, according to a survey by the National Association for Business Economics issued today in Washington. Sixty-two percent of respondents planned to boost spending on new equipment this year, up from 48 percent in the October survey.

“Things are headed in the right direction,” Shawn DuBravac, chief economist at the Consumer Electronics Association in Arlington, Virginia, who analyzed the results, said in an interview. “Topping everything is the high number of firms suggesting they will increase their headcount in the future.”

The report adds to evidence, including a drop in claims for unemployment benefits, showing the job market is strengthening in early 2011. Payrolls rose by 103,000 workers in December, less than the median forecast of economists surveyed by Bloomberg News, and the unemployment rate fell to 9.4 percent from 9.8 percent a month earlier, according to Labor Department figures released Jan. 7. Economists surveyed by Bloomberg this month forecast unemployment will average 9.3 percent this year.

Sales, which the report showed climbed in the last three months of 2010 for the sixth straight quarter, and higher profits are making businesses optimistic enough to consider expanding staff.

More Hiring

Forty-two percent of respondents said they anticipate an increase in hiring within the next six months, compared with 39 percent in the October survey. The share planning to trim payrolls fell to 7 percent from 11 percent last quarter.

A jump in payrolls “won’t happen overnight, and we’re probably several years from seeing the unemployment rate that we enjoyed prior to the downturn,” said DuBravac. “The fact that you see them thinking about hiring shows businesses are likely feeling comfortable with the recovery.”

Eight out of 10 respondents, the most since the October 2006 survey, projected the U.S. economy will expand from 2 percent to 4 percent in 2011. Last quarter, 54 percent said the economy would grow by that much. The median estimate of 71 economists surveyed by Bloomberg this month forecast a 3.1 percent growth rate for this year.

Payroll-Tax Cut

As part of the January survey, the group asked respondents about the $858 billion bill President Barack Obama signed into law on Dec. 17, which extended Bush-era tax cuts for two years. The measure also renewed emergency jobless benefits for the long-term unemployed through 2011, cut payroll taxes this year by two percentage points and included accelerated tax depreciation for equipment purchases.

While 53 percent said the legislation will probably boost sales, 62 percent said it will not sway decisions on business investment, and 68 percent said it will have little influence on hiring, the report said.

Of the 56 percent surveyed who said a portion of their firms’ sales come from abroad, about 4 of 10 said international sales increased last quarter, according to the survey. Two percent said exports declined.

Eighty-four NABE members responded to the survey, conducted between Dec. 17, 2010, and Jan. 5. The National Association for Business Economics, founded in 1959, is the professional organization for people who use economics in their work.

Source

December 12, 2010

Nations struggle to make even modest climate deals

Filed under: economics, news — Tags: , , , — Gladiator @ 12:00 pm

Weary delegates from almost 200 nations struggled through night and day Friday to cobble together final decisions wrapping up the U.N. climate conference, small steps to revive the faltering, yearslong talks to guard the Earth against planetary warming.

No grand compact mandating deep cuts in global warming gases was in the cards. Instead, the two-week session focused on a proliferation of secondary issues _ a “Green Fund” to help poor nations, deforestation, technology sales and other matters.

The cross-cutting interests of rich and poor nations, tropical and temperate, oil producers, desperate islanders and comfortable continental powers, all combined once more to tie up the annual negotiating session of environment ministers down to its scheduled final hours.

“Everything is still being negotiated until we have the full package,” the European Union’s climate chief, Connie Hedegaard, told reporters. “The balance between the elements is what is at stake today.”

Coordinated by host Mexico, small groups of delegates, each led by two ministers, worked overnight and well into Friday behind closed doors at their meeting site, a sprawling beachside resort hotel.

Negotiators had made progress on one key issue: financial support for developing nations to obtain clean-energy technology to cut their own greenhouse gas emissions, and to adapt to potentially damaging climate change _ by shifting agricultural practices, for example, and building seawalls against the rise of warming seas.

In the “Copenhagen Accord” that emerged from last year’s climate summit in the Danish capital, richer nations promised $100 billion for such a Green Fund by 2020.

“There is a consensus that we set up a climate fund,” Bangladesh’s state minister for environment, Mohammed Hasan Mahmud, reported Friday. Details of oversight, such as its governing board’s balance between rich- and poor-nation representatives, were left to post-Cancun negotiations.

Mahmud lamented that once again a hoped-for overarching pact to slash global emissions was being deferred at least another year, to the 2011 conference in Durban, South Africa.

“I doubt if the Durban (conference) will deliver the desired level of results if the negotiations go the way we have been going through here,” he said.

Other issues facing intense last-minute negotiation at Cancun:

_Setting up a global structure to make it easier for developing nations to obtain patented technology for clean energy and climate adaptation.

_Pinning down more elements of a complex, controversial plan to compensate poorer nations for protecting their climate-friendly forests.

_Taking voluntary pledges of emissions controls made under the Copenhagen Accord by the U.S., China and other nations, and “anchoring” them in a Cancun document, giving them more formal U.N. status.

_Agreeing on methods for monitoring and verifying that developing nations are fulfilling those voluntary pledges.

In the 1992 U.N. climate treaty, the world’s nations promised to do their best to rein in carbon dioxide and other heat-trapping gases emitted by industry, transportation and agriculture. In the two decades since, the annual conferences’ only big advance came in 1997 in Kyoto, Japan, when parties agreed on modest mandatory reductions by richer nations.

But the U.S., alone in the industrial world, rejected the Kyoto Protocol, complaining it would hurt its economy and that such emerging economies as China and India should have taken on emissions obligations.

Since then China has replaced the U.S. as the world’s biggest emitter, but it has resisted calls that it assume legally binding commitments _ not to lower its emissions, but to restrain their growth.

Here at Cancun such issues came to a head, as Japan and Russia fought pressure to acknowledge in a final decision that they will commit to a second period of emissions reductions under Kyoto, whose current targets expire in 2012.

The Japanese complained that with the rise of China, India, Brazil and others, the 37 Kyoto industrial nations now account for only 27 percent of global greenhouse emissions. They want a new, legally binding pact obligating the U.S., China and other major emitters.

The upcoming takeover of the U.S. House of Representatives by the Republicans, many of whom dismiss strong scientific evidence of human-caused warming, rules out any carbon-capping legislation for at least two years, however.

While the decades-long talks stumble along, climate change moves ahead.

The atmosphere’s concentration of carbon dioxide now stands at about 390 parts per million, up from 280 ppm before the industrial age. Scientists project average global temperatures, which rose 0.7 degrees C (1.3 degrees Fahrenheit) in the 20th century, will jump by as much as 6.4 degrees C (11.5 degrees F) by 2100 if too little is done.

The U.N. Environment Program estimates the voluntary Copenhagen pledges, even if fulfilled, would go only 60 percent of the way toward keeping the temperature rise below a dangerous 2 degrees C (3.6 degrees F) above preindustrial levels.

Oceans are rising at twice the rate of the 20th century, researchers say, and Pacific islanders report they’re already losing shoreline and settlements to encroaching seas.

“It’s worrying to imagine what will happen 10 years from now at this rate,” said Bruno Sekoli of Lesotho, a spokesman for poorer nations.

“Climate change is a problem that has to be solved. There is no other way.”

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