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December 5th, 2008

Kurdish city prospers as Baghdad struggles

Posted by: Aseel Kami

                                          

    Five years ago, the city of Sulaimaniya in the semi-autonomous region of Kurdistan was pretty nice, but Baghdad wasn’t that bad either.

    Now, after years of sectarian bloodshed in Baghdad, and comparative peace and stability in Kurdistan, Sulaimaniya has shot ahead, as I saw on a recent reporting visit.

    In the last five years, Sulaimaniya has built tall buildings, cleaned its streets, imported modern cars and attracted foreign companies.

    In the same time, Baghdad has retreated behind blast walls and sand bags, investors are waiting on the sidelines and only a handful of buildings are being built.

    When I went to Sulaimaniya in 2003, just after the U.S.-led invasion of Iraq, to escape the heat of Baghdad, I thought then that if I spent a month there that would be enough time to allow the authorities in the capital to restore electricity to a city that had sunk into darkness.

    I did not realize that Baghdad would still be in tatters five years later.

    Sulaimaniya, in contrast, feels more prosperous now than the last time I saw it.

    Relative security has allowed foreign companies to crowd into the city, especially Turkish and Iranian firms. Huge hotels have been built on top of the hills overlooking beautiful scenery and adding to the city’s elegance.
   

    A lack of security has left Baghdad looking like a vast anchaotic military base, with districts cordoned off by concrete walls and squads of soldiers and police deployed at checkpoints in almost every street.

    In Sulaimaniya, residents look happy and satisfied. One taxi driver wearing traditional Kurdish clothes of baggy trousers and a sash, told me: “We live a comfortable life. What more do we need?”

    That is not the sort of thing you hear from most people in Baghdad.
    The taxi driver continued: “The government provides us with 15 hours of electricity (a day) and for the rest we depend on private generators. Sometimes in summer they (the government) provide us with 22 hours of electricity.”
  

    I thought about my situation and that of others who live in Baghdad, where we are lucky to get a few hours of electricity a day to deal with temperatures that average 50 degrees Celsius in the summer. Water, which has to be pumped, only flows when the power is on.
  

    Ask a Baghdad resident his or her opinion on the election win of U.S. President-elect Barack Obama, or on any other issue, and they will likely tell you they are too busy worrying about the chronic problem of power and water shortages to think about
anything else.
  

    In popular Mawlawi street,  I spent some time on one of my favourite past-times — shopping.  While standing near a nuts and sweets shop, I met a couple from Baghdad with their three-year-old son. I seized the opportunity to chat with them while they asked the shop keeper to weigh out half a kilo of dried figs.
   

   ”We came here three years ago,” the man said. “We feel content living here. There is security here.”
   

   One other thing that amazed me about Kurdistan was how western the women looked, wearing jeans and tops that would be condemned in other parts of Iraq, where religious passions have been rising during years of sectarian fighting between minority
Sunni Arabs and majority Shi’ites.
  

    So I took advantage of the opportunity and slipped on jeans and a Western-style top.
    I strolled past Azadi Park, or Freedom Park, where I was told couples could go to romance each other. There was also a platform on which I was told anybody could climb to have their say, like the famous Speakers’ Corner in London’s Hyde Park.
   

   Baghdad still suffers daily car bombings and suicide blasts even though the violence is much reduced from two years ago.
   

    I usually spend my annual vacation abroad but this year I think I may go to Kurdistan.

November 12th, 2008

The Day Ahead

Posted by: Adam Pasick

What to Watch

JPMorgan CEO Jamie Dimon speaks at the Merrill Lynch Banking and Financial Services conference.

Maurice “Hank” Greenberg, the boss of AIG for 38 years, will have some harsh words for Washington’s $700 billion financial rescue legislation when he speaks at the Reuters Global Finance Summit.

Other executives attending the summit, held in New York, London and Hong Kong, include: Automatic Data Processing CFO Chris Reidy; AEA Investors Chairman and former head of Goldman Sachs John Whitehead; Prudential Asset Management Asia CEO Arne Lindman; Kookmin Bank Senior Executive Vice President for Capital Markets & Treasury Group Young Han Choi; Hudson City Bancorp CEO Ronald Hermance; Toronto Dominion Bank CEO Ed Clark; and Scotiabank President and CEO Rick Waugh.

The House Committee on Financial Services holds a hearing titled “Private Sector Cooperation with Mortgage Modifications.” Representatives of managed funds, the American Securitization Forum, Bank of America and JPMorgan Chase are expected to attend the hearing, which is scheduled to begin at 1000ET/1500 GMT.

David O’Reily, chief executive of oil major Chevron, discusses the global oil market and the future of theworld’s energy markets at a speech to the Council on Foreign Relations in New York.

Click here for more information about accessing the full version of The Day Ahead.

More

Elsewhere on the Web: The Big Money’s Today’s Business Press

FRONT ROW: FIRST TAKE  

  • President Bush tends to ceremonial duties Wednesday while the White House ramps up preparations for the G20 summit this weekend. The G20, which groups industrialized and rapidly developing economies, will be discussing moves to tackle the global financial crisis.
  • The House Financial Services Committee is looking into the mortgage crisis. It has a hearing on whether banks and other lenders are doing enough help people in jeopardy of losing their houses by changing the terms of mortgages.
  • The Supreme Court is hearing arguments on whether a religious group must be allowed to put its monument in a city park near a similar Ten Commandments display.

More

Elsewhere on the Web: ABC News’ The Note

Caught between the credit crisis of 2008 and never having fully recovered from the bursting of the Internet bubble in 2000, Sun Microsystems‘ prospects are being eclipsed by a sunken share price and grumpy investors and the company could be forced to sell itself or some of its assets.

More

Elsewhere on the Web: DealJournal, DealBook

First Read:

ANALYSIS AND COMMENTARY

Cloudy future for top fund managers
Firms can expect more scrutiny under Obama
The world’s expanding top table
Diana Furchtgott-Roth: After victory, a reality check for Obama

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Elsewhere on the Web: The Daily Beast’s Cheat Sheet

MORE DATA

BUSINESS NEWS DIGESTS

  • Wall Street Journal
  • New York Times
  • Financial Times
  • Washington Post
October 24th, 2008

Situation Normal All Fouled Up

Posted by: Chris Kaufman

Tokyo stocks tumbled nearly 10 percent, the Hang Seng off more than 8 percent, S&P futures limit down and oil tumbled another five dollars despite production cuts. It’s little wonder that rumors of a market holiday grew louder in London. 
 
On the firefighting front, a Treasury source tells us that the bank-funding hypodermic is filled up and ready to be injected into another group of banks, and AIG is reported to have pretty much burned through the $90 billion in bailout funds it got a month ago.
 
Both the Nasdaq and NYSE say they will open as normal, and a talking head on CNBC suggested that current market conditions could prompt a bounce in U.S. markets.  Given how far out of whack everything seems, that view may wind up being the most rational take on the markets of the day.
 
Deals of the day:
 
* A number of parties are interested in the private equity stakes being sold by Lehman Brothers, said a source familiar with the matter. Goldman Sachs, which has one of the world’s largest private equity businesses, is one of the potential bidders, a second source said. A Bloomberg report named Coller Capital and Lexington Partners as other firms weighing bids, citing people with knowledge of the situation. 
 
* Jupitermedia said it will sell its online images business to Getty Images for $96 million in cash, leaving it to focus exclusively on its online media division. 
 
* Mining group BHP Billiton said the current economic turmoil may throw up takeover opportunities, but only small deals would be considered, its CEO said. 
 
* New Zealand’s Port of Tauranga is expecting rival Ports of Auckland to bid for its container business, it said, as a declining shipping business has port operators looking at consolidation. 
 
* The Dutch government has no intention of selling the Dutch banking operation of Fortis and will proceed with its planned integration with ABN AMRO, a Finance Ministry spokesman said. 
 
* The Dutch government has no intention of selling the Dutch banking operation of Fortis and will proceed with its planned integration with ABN AMRO, a Finance Ministry spokesman said. 
 
* Russia’s anti-trust watchdog rejected on Thursday a $140 million bid by Google to buy the Begun advertising agency, claiming the deal would reduce competition in the online advertising market. 
 
* EnCana, Canada’s biggest oil and gas producer, said it will not revisit its postponed plans to split into natural gas and oil sands arms until turmoil from the credit crisis calms.
 
* Italian fashion group Mariella Burani has been approached by potential investors from the Middle East but has not yet had any formal offer, it said in a statement. 
 
* Iceland’s Straumur-Burdaras said it had reached a deal to buy the rights to the name of London-based investment bank Teathers, and said it plans to hire about half of its 190 employees.
 
* Russian aluminum major RUSAL will defer a $700 million tranche to billionaire Mikhail Prokhorov for the purchase of his stake in mining giant Norilsk Nickel as it could not meet the Friday deadline.
 
* The Australian government has approved a takeover of St George Bank, the country’s fifth-biggest lender, by larger rival Westpac Banking, Treasurer Wayne Swan said.
 
* Ticketmaster agreed to acquire a majority interest in Front Line Management and install its head Irving Azoff as chief executive of the combined company, the Wall Street Journal said. 
 
* Norway’s oil group Det norske oljeselskap said it was selling its 10 percent stake in Yme field licences to Polish peer Lotos. 
 
* Volkswagen Chairman Ferdinand Piech expects the takeover by Porsche to move ahead smoothly and played down in a newspaper interview any differences in his extended family that owns Porsche. 
 
* The European Commission will approve an Italian investor group’s takeover plan for struggling airline Alitalia but not a 300 million euro ($386 million) state loan, la Repubblica newspaper said. 
 
* Russia’s flag carrier Aeroflot has asked the transport ministry to support its takeover of airline S7, which may bid for Austrian Airlines, Interfax reported, citing Aeroflot. 
 
* GlaxoSmithKline stepped up its drive to acquire more biotech assets by buying the rights to an Austrian biotech company’s experimental therapeutic vaccines against Alzheimer’s disease. 
 
* Interactive entertainment company Bright Things said it signed a relationship agreement for its social network site SocialGo with widget maker WidgetLaboratory, sending shares up nearly 67 percent.
 
* Greek lenders Piraeus Bank and Proton Bank said their boards had agreed to cancel a share swap agreement, after Proton said it would seek to take part in a government bank rescue plan. 
 
* U.S.-Swedish bourse operator Nasdaq has won final approval to buy Nordic power exchange Nord Pool’s international business, Nord Pool said. 
 
* AIM-listed media company Coolabi said it conditionally agreed to acquire Licensing by Design Ltd (LBD) for 400,000 pounds ($652,800) in cash, sending Coolabi shares up nearly 13 percent. 
 
* Ukraine’s Prominvestbank, which some Ukrainian officials have said could be nationalised, said it hoped to find a buyer in the next few days. 
 
* Spanish vending machines group Azkoyen said it expects to control 50 percent of German technology group Primion by Friday after announcing a full bid for the company in September. 
 
* Italian regional utility Hera is still open to tie-up talks with a merged Iride and Enia, Hera Chairman Tomaso Tommasi di Vignano said. 
 
* French food group Danone is set to sell its Frucor fruit juice unit by the end of the month and will garner almost 600 million euros ($771 million) from the sale, a source close to the talks told Reuters. 
 
* British publishing group Pearson said it was raising its stake in South Africa’s Maskew Miller Longman (MML) to 85 percent from 50 percent, forming a new educational publishing unit in the region.

September 2nd, 2008

Vlog on the pitch — transfer deadline day

Posted by: Kevin Fylan

Owen Wyatt is joined by a sober-shirted Jon Bramley to discuss the deadline day transfer deals.

Will Manchester United be unstoppable now they have added Dimitar Berbatov to their line-up? Can Robinho cope with the whole rough and tumble of life in the Premier League? And speaking of which, are Manchester City the new Chelsea?

Feel free to leave your comments below, or send us a video of your own looking at this or any other issue in football. Let us know the url and if we like it we’ll host it right here.

July 23rd, 2008

Powell, Bolt or Gay - who will take 100m gold?

Posted by: Kevin Fylan

Powell pulls ahead of Bolt

Judging by what happened in Stockholm on Tuesday night, Beijing could see one of the closest men’s 100 metres finals as well as one of the fastest.

Asafa Powell and his fellow Jamaican Usain Bolt gave us a thrilling little appetiser for the main course in August when they faced each other in an IAAF Grand Prix.

Powell won in 9.88 seconds but it was desperately close, with Bolt finishing just one hundredth of a second behind after recovering from a terrible start to give his fellow Jamaican a bit of a fright.

Bolt recently deprived Powell of his world record by clocking 9.72 in New York in May, but will the 21-year-old have the nerve to win in Beijing?

Powell has the greater experience, having finished fifth in the final in Athens with a time of 9.94.

There is also world champion Tyson Gay to consider, and we should get a better idea of his form when he races against Powell in another warm-up at Crystal Palace in London on Friday.

Who is your favourite for the men’s top prize this time? Let us know in the comments.

PHOTO: Jamaica’s Asafa Powell (L) pulls ahead of compatriot Usain Bolt to win the men’s 100 meters in Stockholm July 22, 2008. REUTERS/Bob Strong

By the way, there are a few candidates for closest ever 100m Olympic final. One of the tightest was in Helsinki in 1952 when Lindy Remigino (or at least his right shoulder) hit the tape just ahead of Herbert McKenley. Allan Wells beat Silvio Leonard by just a few inches in 1980 in Moscow, while the 2004 final mentioned above was also desperately close, with Powell one of five men to finish in under 10 seconds.

July 21st, 2008

Iran Geneva talks: whose interpretation will triumph?

Posted by: Jon Boyle

EU foreign policy chief Solana shakes hand with Iran’s chief nuclear negotiator Jalili before a meeting on nuclear issues in Geneva.REUTERS/Denis Balibouse    Was the meeting in Geneva filled with “meandering” small talk? Or did the discussions between world powers and Iran begin work on an intricately woven carpet, that in time, would yield an “elegant and durable” outcome?

    The two views, the first voiced by U.S. Secretary of State Condoleezza Rice and the second by chief Iranian nuclear  negotiator Saeed Jalili, say much about how the two foes approached Saturday’s meeting to resolve Iran’s long-running nuclear row with the West.

    It may also indicate prospects for a deal between officials from the “Great Satan” and “Axis of Evil”, who have spent so long without diplomatic ties that they have forgotten what makes the other one tick — while trust has all but vanished.

    Perhaps the result of Saturday’s meeting (Iran, it was announced, did not give a clear answer to demaUS Undersecretary of State Burns sits before a meeting with Iran’s chief nuclear negotiator Jalili and EU foreign policy chief Solana on nuclear issues in Geneva.REUTERS/Denis Balibousends by world powers) was clear before officials sat round the table.

    Those who watched the scene in Geneva saw U.S. Undersecretary of State William Burns enter with a demeanour that did little to suggest a man who really wanted to be there.

    If history was on his mind, he had little reason to be encouraged. Talks to try to get Iran to halt the most sensitive part of nuclear work, uranium enrichment, have gone nowhere since Tehran tore up a previous suspension deal with the European Union in 2005. The United States saw this as a sign Tehran was bent on producing a nuclear bomb, despite Iran’s insistence that it was just exercising its right to develop the technology needed to make electricity.

    The Iranians also offered little reassurance before Jalili sat down in front of the six world powers and their representative, EU foreign policy chief Javier Solana. Shortly before discussions began, an official told Reuters bluntly: “Any kind of suspension or freeze is out of the question.”

    The only person by this late stage who showed any visible enthusiasm was a Swiss passerby, who when asked why all the cameras were crowding outside the talks venue, was told they were waiting for Brad Pitt. Out came the pocket camera ready for the Hollywood star, until a sheepish television producer admitted the real reason. The bystander trudged off.

    Everything had seemed so much more upbeat even hours earlier. A British newspaper had reported Washington would soon announce plans to open a low-level diplomatic presence in Tehran for the first time in almost 30 years. Iran said it would consider such an idea, and was also ready for direct flights. Days earlier, Iranian newspapers were filled with debate, involving some high-level politicians, about how Iran should respond to the nuclear, trade and other incentives offered by the United States, Britain, France, Germany, Russia and China. Such unprecedented debate surely signalled a change of heart?

    And so we come to the bit where neither side seems able to read the other.

    What, from the U.S. side, may have been a bid to show what Iran could win from a concession, Iranians — as subsequent newspaper editorials make clear — saw as a pitifully small gesture for stopping a programme that is a symbol for many of them as a point of national pride and regional status.

    Likewise, the Iranian debate that became so public, and which some in the West saw as a signal of a soul-searching, perhaps indicated the fractious nature of the Iranian leadership but said less about its willingness to switch direction.Iran’s Supreme Leader Ayatollah Ali Khamenei speaks at ceremony to mark death anniversary of Islamic Republic founder Ayatollah Ruhollah Khomeini in Tehran. REUTERS/Morteza Nikoubazl

    That, say diplomats and analysts, is because it is difficult to determine whether the debate went to the heart of Iran’s leadership. Ultimate decision-making may lie with Supreme Leader Ayatollah Ali Khamenei but he tends to look for consensus, they say. Iran’s multi-layered structure (including a national security body, a council to mediate between parliament and a constitutional watchdog, plus a clerical assembly that technically has the power throw out the supreme leader) means it is not always easy to determine the seriousness of any discussion when it does finally emerge in public.

    And even if debate does go deep, there are powerful checks on any change in policy when the aim is to reach a common view among such hydra-like bodies, not to mention securing the backing of a handful of powerful politicians who have helped guide the country since the 1979 revolution.

    This then helps makes sense of Jalili’s comment to an Iranian reporter, cited by the daily Etemad-e Melli, as he left Saturday’s talks: “Diplomacy is like a Iranian carpet that progresses by the millimetre. Diplomacy is also elegant and exquisite and, God willing, the outcome is beautiful, elegant and durable.”

    Perhaps it’s also understandable why Jalili’s approach in Geneva did not go down well with the straight-talking U.S. administration and looked more like time wasting. As Rice put it on Monday: “I understand it was at times meandering.”

    When diplomatic ties have been cut for three decades and a “wall of mistrust” has been built up — as one moderate Iranian president once put it — a deal may not come swiftly.

April 6th, 2008

Graphic: G7 GDP and CPI

Posted by: Reuters Staff

Gross Domestic Product

Consumer Price Index (CPI)

April 4th, 2008

Echoes of Obama in Veltroni Campaign

Posted by: Phil Stewart

Veltroni at a campaign rally

It’s no secret in Italy that the underdog candidate for prime minister, Walter Veltroni, likes Barack Obama — and likes him a lot.

Veltroni’s campaign motto “Si può fare” is a literal translation of Obama’s “Yes we can”, and his campaign mantra of change seems to take a page straight out of the Obama playbook. His party has sought to highlight their similarities, even quoting George Clooney saying Veltroni and Obama “are the most responsible people I have ever met”.

Veltroni acknowledges he’s looking to Obama for inspiration, and his supporters are increasingly looking across the Atlantic as well.

One good example is the music video that Veltroni’s celebrity fans put together that they acknowledge was modelled after the one that Black Eyed Peas did for Obama with the help of Scarlett Johansson.

What does Veltroni’s rival have to say about this? Silvio Berlusconi, a conservative media mogul who is ahead in the polls, has pounced on Veltroni, calling him an Obama-wanna be. Berlusconi also has criticised Obama for taking sides in the U.S. election, asking what will Veltroni do should Hillary Clinton or John McCain become the next president.

August 29th, 2007

Yesterday’s news tomorrow

Posted by: Robert MacMillan

News flash! Newspapers are in trouble!

Just in case you didn’t know that, credit agency rating company Fitch released a nice, long refresher course on one of the United States’s favorite dying-yet-profitable business.

Titled “U.S. Newspaper Outlook Update - Still Negative,” Fitch sought and caught the hook that reporters use to freshen up the story: Things aren’t just bad, they’re worse than we thought!

Excerpts:

  • Gannett Co, Inc. (Not Rated): Ad pages down 17% at the USA Today and pro forma real estate classifieds at community newspapers down 20%.
  • Tribune Company (rated ‘B+’, Rating Watch Negative by Fitch): Classifieds down 18% driven by real estate down 24% and employment classifieds down 19%.
  • The McClatchy Company (’BB+’, Stable Outlook): Real estate down 26%, Automotive down 20% and National down 19%.
  • Dow Jones (’BBB+’, Rating Watch Negative): Ad volume down 20% driven by a 75% decline in technology related ads. Classifieds down 14%.

And then there’s this:

Stock prices have been down for several years, but with the turbulent credit markets, Fitch believes that companies that did not already pursue highly leveraged acquisitions or leveraged recapitalizations are less likely to pursue those types of transactions in this funding environment.

Goldman Sachs analyst Peter Appert released a similar assessment on Monday in a research note: “Our message is consistent and (sadly) unchanged: Business is lousy, with no signs of near-term improvement.”

This just goes to disprove the old saying that no news is good news.

August 29th, 2007

Sign of the times — outdoor ads climb

Posted by: Paul Thomasch

If there was any lingering doubt that billboard, park bench and every other sort of outdoor advertising are hot, well, just check out the latest figures.

In the first half of this year, outdoor advertising revenue rose about 8 percent to almost $3.8 billion in the United States, according to an industry trade group. That puts it on pace to match the increases seen in 2005 and 2006.

 Outside the Internet, those growth figures are tough to beat.

Here’s a breakdown of the top categories from the Outdoor Advertising Association of America:
    1. Misc. Services and Amusements $581 million
    2. Insurance and Real Estate $382 million
    3. Public Transportation, Hotels and Resorts $326 million
    4. Communications $311 million
    5. Media and Advertising $307 million
    6. Retail $296 million
    7. Restaurants $232 million
    8. Financial $217 million
    9. Automotive Dealers and Services $199 million 
  10. Automotive Equipment $180 million