20 10 / 2011
House panel sets hearing on China trade concerns
Camp put forth a list of concerns he said were “costing U.S. jobs,” but did not include currency among them even though many lawmakers say China undervalues its currency by as much as 15 percent to 40 percent to give its exporters an unfair trade advantage.Last week, the Senate approved a bill to pressure China to raise the value of its yuan against the dollar by allowing U.S. companies on a case-by-case basis to seek countervailing duties on goods from countries with an undervalued currency.House of Representatives Speaker John Boehner has called the legislation “dangerous” because of its potential to start a trade war.But a majority of House members, including 61 of Boehner’s fellow Republicans, support a similar bill and Democrats are pushing for a vote.Camp’s statement referred to both the positive and negative aspects of U.S.-China trade.”The Chinese market presents enormous potential for growing U.S. exports, which support American jobs. But China purposefully makes it harder to sell our goods and services, unfairly subsidizes its own companies, and blatantly steals the intellectual property of American businesses,” Camp said.He also suggested the onus was on the White House, rather than Congress, to devise a response to the problem.”The President and his Administration should continue to press China to open its markets through every available avenue. And when China has violated its international obligations, the United States must aggressively enforce its rights,” Camp said.”I look forward to hearing the Administration’s plan for addressing China’s persistent barriers to U.S. exports and investment and exploring what should be done to ensure American employers and workers are treated fairly.”
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17 10 / 2011
BP gets $4 billion from Anadarko for oil spill costs
Under the settlement announced on Monday, Anadarko said it will no longer pursue its allegations of gross negligence against BP. Anadarko was a 25 percent partner in the doomed Macondo well, and BP had sought payments to offset the costs of the spill.BP shares rose 2.2 percent in London on news of the settlement. Anadarko shares were up 3.8 percent to $73.27 in afternoon trading on the New York Stock Exchange.”We regard it as favorable for both companies,” BP Chief Executive Bob Dudley told reporters.Anadarko could have been on the hook for 25 percent of the cleanup costs, compensating those affected, and paying any government fines. It could only avoid this responsibility if it proved that BP had been grossly negligent — something which could, potentially, have added around $18 billion to the total amount of fines BP faced.Anadarko would still be liable under the deal with BP for any fines payable to the U.S. government.Fines for leaking oil into U.S. waters are assessed at a level of $1,100 per barrel, or $4,300 if gross negligence is proven. The government has said the Macondo well leaked almost 5 million barrels into the sea.BP has said the total bill for the oil spill, including government fines, will be $42 billion. This suggests Anadarko could have faced a total bill well above the $4 billion it agreed to pay.LESS LIKELYInvestors have priced in a final cost to the company from the spill that is far above BP’s estimate. Analysts say deals such as the one announced Monday make the worst-case scenario — a final bill in excess of $70 billion — look less likely.”We maintain our view that the ultimate cost to BP could fall … substantially below the cost inferred by the share price fall since the accident,” said Richard Griffith, an oil analyst at Evolution Securities.In May, BP agreed to accept $1.1 billion from the third partner in Macondo, Mitsui & Co, to cover its 10 percent share of cleanup costs.BP’s lawsuits against companies it hired for the failed drilling project are among the hundreds of claims still pending before a federal judge in New Orleans. A trial date has been set for February next year.To share the cost of the spill and cleanup, BP sued Transocean, owner and operator of the sunken Deepwater Horizon rig, cement specialist Halliburton, and Cameron International Corp, which designed the blowout preventer, a device that was supposed to stop the surge of oil.Key to forcing Transocean to meet the cleanup bill — BP has sought the full amount from the drilling contractor — is convincing a court that Transocean was grossly negligent.If BP does recoup cash from Transocean or Halliburton, it will pay a portion of this — up to $1 billion to Anadarko under the terms of the deal.Two lengthy government inquiries have laid the lion’s share of the blame for the blowout at BP’s door.The rig blast killed 11 men and caused more than 4 million barrels of oil from the Macondo well to spill into the sea.The case is In re: Oil Spill by the Oil Rig “Deepwater Horizon”, U.S. District Court, Eastern District of Louisiana, No. 2:10-md-02179.
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12 10 / 2011
After iPhone’s debut, Cook must reposition Apple brand
With Google Inc Android phones gaining momentum, Cook is likely sticking to established battle plans at this critical juncture. But longer term, he may be better off moving the company out from under Jobs’ gargantuan shadow. The Apple co-founder bequeathed a mystique and cachet to the brand that will be near-impossible to replace, cultivating a community of fans hooked on ease of use and rich content.It’s those perceptions Cook — who in two months on the job has already shown Wall Street and Silicon Valley glimpses of what an Apple without Steve Jobs might look like —- must focus on preserving rather than the inimitable aura of the co-founder who died last week at the age of 56.”There’s no question Apple is going to go through a time of transformation. There’s a lot of risk around the brand,” said Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management who has advised clients like Eli Lilly & Co. “A lot of pressure will fall on Tim Cook to step up. The hard part is, he’s not Steve Jobs, nor can he try to be.”Cook has the luxury of time to ponder his next step. Advanced sales of the iPhone 4S — despite disappointing fanboys and pundits hoping for more than an enhanced iPhone 4 — surpassed one million in its first 24 hours globally, smashing the 600,000 for the iPhone 4, though that model was sold in fewer countries.Sales in stores begin October 14 in Japan, Australia, France, UK, Germany, Canada and the United States.Some analysts expect fourth-quarter iPhone shipments of as much as 30 million or more, almost double from a year ago.The fifth iteration of the iconic smartphone comes with a faster processor and a better and more light-sensitive camera, but little else to separate it from its predecessor. But tech experts say the real gems lie beneath the phone’s familiar sleek casing.Influential reviewers Walt Mossberg and David Pogue raved about “Siri” — a voice-command activated assistant that understands and responds to spoken commands and questions in context, such as queries about the weather or a friend’s phone number. Pogue called it “crazy good, transformative, category-redefining speech recognition.”“Despite Siri, the iPhone 4S isn’t a dramatic game-changer. Some new features are catch-ups to competitors,” Mossberg wrote in the Wall Street Journal. “It isn’t perfect, and is labeled a beta, but it has great potential and worked pretty well for me, despite some glitches.”Both reviewers marveled at Siri’s ability to hold conversations, from basic “give me directions to …” to quirkier discourses.”When I asked it, ‘What’s the best phone,’ it said, ‘Wait … there are other phones?’” Mossberg wrote.BLAST FROM THE PASTCook now faces the monumental task of not only preserving, but also advancing Apple’s lofty status in the industry and among fickle gadget consumers. Moreover, he must do that while honoring his former boss and mentor, a master showman who time and again displayed an uncanny instinct for driving consumer tastes.”Things for the next two years are pretty much set in stone in terms of what they want to achieve, and the new kind of product focus they are putting out. After three years, the new management is going to make its mark,” said Jack Salzman, principal and founding member of Kings Point Capital Management. “If there is any pressure on the new Apple management, its probably going to be self-imposed, because of the void that was left by Steve Jobs.”The product pipeline is where Cook needs to stamp his own authority on the company. He can stick to script only so long before he risks stagnation and damaging the brand. Apple needs to find a formula divorced from Jobs’ persona, observers say.Indeed, during the iPhone 4S’ media launch last week, Cook stepped back and allowed the supporting cast — such as marketing chief Phil Schiller, software head Scott Forstall and design guru Jonathan Ive — to tout the device, something Jobs would have sought to control from start to finish.”They’ve got to find a new voice in the market. Steve Jobs was so much the face of Apple,” Calkins said. “Protect the core elements of the brand, but at the same time, move forward.”“You can’t turn Apple into a memorial for Steve Jobs,” he added. Cook shouldn’t “be afraid to make changes in the way the company communicates and reaches out to consumers.”Branding and marketing aside, ultimately Apple’s products — not their hype — need to be judged on their own merits.Apple’s meticulously scripted marketing blasts are the stuff of Silicon Valley legend. After rumor and speculation builds across the Internet, the company sends out a cryptic email invitation to tease the product. That, in turn, is typically followed by a splashy extravaganza that culminates in a global first-day sales event across the globe that often has people lining up around the block days in advance.”Past this launch, there isn’t really a killer new launch. I am sure they have got a number of products in development,” said Pat Becker, a portfolio manager at Becker Capital Management. “But once the phone is out, you will have all the price points covered, you have got the different carriers covered. To me, that’s’ a start toward reaching saturation in the phone market.”
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11 10 / 2011
Journalists of the year
Last night we honored our 2010 Journalists of the Year. What a moving ceremony it was, and I am so proud of the achievements of our winners.
As I look back on 2010, my final full year as Reuters Editor-in-Chief, I’m struck by how journalists and news organizations have been challenged with a steady stream of high-impact, global stories. The 3,000 men and women of Reuters answered those challenges.
A devastating earthquake killed thousands in luckless Haiti, which has not yet completely risen from the rubble; an oil-rig explosion sent 200 million gallons of oil gushing into the Gulf of Mexico, roiling politics and markets for months; a debt-driven economic storm swept over Europe, threatening to sink markets and topple governments; a volcanic eruption sparked a transportation crisis; businesses and governments continued to recover from the 2008 financial crisis with new investments – and new regulations.
Through all of this, Reuters journalists told the world’s stories with speed and insight, making sense of an increasingly confusing and dangerous world.
I invite all of you to check out the winner’s profiles.
My heartiest congratulations to our winners!
Permalink 66 notes
11 10 / 2011
Journalists of the year
Last night we honored our 2010 Journalists of the Year. What a moving ceremony it was, and I am so proud of the achievements of our winners.
As I look back on 2010, my final full year as Reuters Editor-in-Chief, I’m struck by how journalists and news organizations have been challenged with a steady stream of high-impact, global stories. The 3,000 men and women of Reuters answered those challenges.
A devastating earthquake killed thousands in luckless Haiti, which has not yet completely risen from the rubble; an oil-rig explosion sent 200 million gallons of oil gushing into the Gulf of Mexico, roiling politics and markets for months; a debt-driven economic storm swept over Europe, threatening to sink markets and topple governments; a volcanic eruption sparked a transportation crisis; businesses and governments continued to recover from the 2008 financial crisis with new investments – and new regulations.
Through all of this, Reuters journalists told the world’s stories with speed and insight, making sense of an increasingly confusing and dangerous world.
I invite all of you to check out the winner’s profiles.
My heartiest congratulations to our winners!
Permalink 61 notes
