Despite the media hype, American taxpayers still stand to lose a bundle from the government takeover of General Motors, thanks in large measure to the lack of credibility the company’s Obama-mandated obsession with the unpopular Chevrolet Volt: GM announced earnings this morning and the numbers appeared to be good on the surface. Media friends of GM trumpeted the good news but the celebration did not last long. The festive mood was replaced with GM apologists trying to explain the negative share price reaction.The obvious overhang of UAW obligations seemed to be ignored, as did the lack of management credibility. One TV commentator known for his defense of GM attributed the sell-off to “bankruptcy fatigue”, claiming that investors are still punishing GM for its trip through bankruptcy. Nonsense. The people who control the big money on Wall Street are not concerned with the past actions of a corporation as much as they are with actions that give an indicator of what the future holds. The problem with GM is not that it suffers from “bankruptcy fatigue”, but rather “credibility fatigue.” Current management has claimed that future growth would be driven by China and the Chevy Volt. China is a small portion of GM’s profitability and the Volt loses money for GM. Recent statements out of GM that dismal sales of the Volt were due to the fact that dealerships had “virtually” no inventory have been exposed as dishonest. Another comment by CEO, Dan Akerson, about cash on the balance sheet of 35 to 40 billion dollars is also inaccurate. Cash and cash equivalents are about 20 billion dollars. Of course GM might claim that it all depends upon your definition of “cash.”
Continue reading …Decision to delay talks on financial aid for famine victims could hinder efforts to help millions of people suffering in the region The African Union’s decision to postpone a pledging conference for east Africa has been described as a “serious blow” to relief efforts. Save the Children said on Friday the decision would hinder efforts to help millions of children suffering in the region. The AU had been due to meet on Monday to discuss members’ financial response to the crisis that is now affecting more than 12 million people in Somalia, Kenya, Ethiopia and Djibouti. But in a statement on Thursday the AU said the meeting had been re-scheduled for 25 August. The statement gave no specific reasons why the conference has been delayed, but it is understood the postponement would allow members more time to mobilise resources. Erastus Mwencha, the deputy chairman of the African Union commission, reportedly said some member countries felt they hadn’t been given enough notice of the conference. “There is no point of us rushing into a conference only again to come up again regretting [sic],” he was reported as saying. “Many African countries wanted to delay because they felt it was too short notice for them to be able to do something meaningful. We need some time for planning, and I think that request is well-founded.” Last month, the AU announced it was to give $300,000 to the UN refugee agency, the UNHCR, to assist Somalis living in camps in Somalia and in neighbouring countries. The Daily Nation newspaper in Kenya reported an anonymous AU commissioner as saying the organisation was facing serious financial problems as a result of the uprisings in north Africa. Five countries, including Egypt and Libya, contribute around 75% of AU’s budget. Libya has suspended its contributions. This week, the UN declared that three further regions of Somalia were in a state of famine and expected it to spread across the south of the country over the next six weeks. The UN said more than $1bn in aid was still needed to address the crisis. Tens of thousands of people had already died in Somalia, which, after failed rains and two decades of conflict, is at the epicentre of the crisis. Humanitarian relief efforts in the south of Somalia and the capital, Mogadishu, are being hampered by al-Shabaab, the Islamist group that is refusing access to international aid agencies. On Friday, Andris Piebalgs, EU commissioner for development, pledged an extra €175m ($248m) in development assistance for Somaliland, Puntland and central Somalia, which are more stable. Rachel Palmer, working for Save the Children at Dadaab refugee camp complex in northern Kenya, where thousands of Somalis are arriving daily, said: “Children are dying from starvation every day, yet world leaders are failing to make good on their promises. Young children are arriving at our feeding centres in shocking conditions – they haven’t eaten or drunk anything for days. “Yet we can pull them back from the brink. We can save their lives – but there are many more we need to reach. The British public and government have been overwhelming in their generosity, now governments around the world have to turn words into action or more children will die.” Famine African Union Africa Aid Liz Ford guardian.co.uk
Continue reading …Publisher keen for paper’s controversial former investigations editor, Mazher Mahmood, not to join rival title ‘Fake sheikh’ Mazher Mahmood, the News of the World’s controversial investigations editor, is in talks with the Sunday Times about relaunching his career, after 20 years at the Sunday tabloid where he claimed to have “saved children from paedos and nailed 250 evil crooks”. News International is determined not to lose Mahmood to the competition and has encouraged talks with the Sunday broadsheet. Mahmood, who specialised in undercover stings, often dressed as a sheikh, has not been tainted by the phone-hacking scandal, but nonetheless a move to the Sunday Times would be an eye-catching signing for the upmarket paper. “Mahzer is the News of the World. He is the brand. He has had some spectacular stings like the cricket match fixing, Fergie and Sophie-Rhys Jones, but he specialises in fairly low-rent villains that hardly fit in with the tone and culture of the Sunday Times,” said one former colleague. Talks will no doubt centre on how he will operate within, or alongside, the paper’s core investigations unit and whether his team goes with him. Mahmood worked secretly and was rarely in the office but had a team of journalists, technical staff and bodyguards with him on his operations. Mahmood’ scalps included Sarah Ferguson, who agreed to take $40,000 from the ‘sheik’ to arrange access to Prince Andrew. The fact that Mahmood had also snared other royals including Sophie, Countess of Wessex and Princess Michael of Kent using the same disguise didn’t set alarm bells ringing for Ferguson, who subsequently said she was “devastated” by the revelations. If Mahmood signs a deal with the Sunday Times he will be one of a handful of former News of the World journalists who are expected to stay at News International. Rank-and-file journalists say they feel they are being frozen out by the publisher despite promises by former chief executive Rebekah Brooks that staff would be redeployed within the group. Last week it emerged that the jobs on offer include posts include a Fox TV job in Siberia and oil reporting jobs in Murdoch’s Dow Jones financial wire service, neither of which are obvious career moves for News of the World journalists. “I don’t think there is the slightest chance of getting a job at NI. The most obvious place to go is the Sun but they don’t want to risk of the paper being drawn into the phone-hacking scandal and no matter how slim the risk is, having one of their staff arrested, even as a witness, is something they don’t want. They want to de-link from the News of the World totally,” said one journalist. Another said: “The 90-day consultation period is up on 8 October. It feels like a prison sentence. Most people are looking around elsewhere but it’s difficult with such a cloud hanging over the paper you’ve been working for.” •
Continue reading …Paper’s former publisher rejects claim, saying it cannot be sued over information provided to police in an ongoing investigation News Group Newspapers, former publisher of the defunct News of the World, is being sued for £100,000 by a prison warden’s brother who claims that a senior executive at the newspaper confirmed to police he was the source of leaked stories about the Soham killer Ian Huntley. John Capewell, the brother of a prison officer who worked at high security lock-up HMP Frankland in Durham where Huntley is incarcerated, is suing the newspaper publisher for allegedly breaching an anonymity agreement. Capewell, 47, has launched legal action against NGN claiming it broke the deal because Tom Crone, the former senior lawyer at NoW, confirmed that Capewell was the source of the stories, in a phone call to police officers investigating leaks from the prison in 2008. Lawyers representing Capewell believe the case is important because a newspaper has a duty to protect the identity of its sources. “It is Mr Capewell’s case that they [NGN] betrayed the trust of a confidential source who was seeking to exercise his freedom of speech to provide information of public interest,” said his legal representatives. “In doing so, Mr Capewell alleges that they have caused him to suffer the indignity and intrusion of a criminal trial, caused his reputation to be smeared and caused him to lose his job. Mr Capewell says that his life has been ruined.” NGN has applied to have the claim struck out, on the grounds that it cannot be sued over information provided to assist the police in an ongoing investigation. The paper also says police officers had already determined that Capewell was the source of information about HMS Frankland before officers approached Crone. Capewell had already been arrested by the time the News of the World was approached by the police. Capewell, 47, approached NoW in 2008 offering “anonymous information” about the prison in return for a sum of money, alleged to be £40,000 , although the publisher is not thought to have paid for the information. Capewell offered Chris Tate, a former senior reporter at the tabloid, information about “preferential treatment” being given to Huntley and, separately, claims of an alleged “sexual relationship” between a female warden and an inmate convicted of murder and several serious sexual offences involving minors. Capewell also gave the reporter details about an alleged plot by Muslim inmates to decapitate a prison warden. The NoW did not publish any of Capewell’s claims. However stablemate the Sun allegedly printed a story about Huntley based on the information just days after his first meeting with Tate. The Daily Mail published a similar story three weeks later. In September 2008 police launched an investigation into the source of the leaks from HMP Frankland after a dog walker found confidential prison documents bearing Capewell’s fingerprints – including the contract between Capewell and Tate –
Continue reading …Another 140,000 homes plunged into fuel poverty as E.ON becomes fourth utility company to raise charges E.ON has become the fourth big utility company to announce a jump in energy prices, raising the cost of gas by 18.1% and electricity by 11.4%. The rises, effective from 13 September, are roughly in line with price increases announced in the past two months by Scottish and Southern Energy and Scottish Power. However British Gas has raised its electricity and gas prices by 16% and 18% respectively, just eight months after lifting prices by 7%. This means only nPower and EDF have yet to announce price rises, which could be lower following a continued easing in the cost of wholesale gas and oil prices. Energy prices generally track those of oil, but the price of a barrel of oil has fallen from $118 to $108 in the past few days. Wholesale prices for gas and electricity are down by a third compared to their peak in 2008, according to comparison website TheEnergyShop.com , while the price of a barrel of oil is down 24%. Graham Bartlett , managing director of E.ON Energy Solutions, said in a message to customers: “About half the price we charge for energy is governed by the price we have to pay for it in the world market. And, this year, wholesale prices throughout the industry have soared. According to Ofgem, they’re up by some 30% since last winter.” He admitted that wholesale prices were higher in 2008 than now, but said the trend has been steadily upward and made much worse by events in Japan, Libya and Egypt. “At the same time, our costs for using the infrastructure that gets the energy to your home have gone up too. Of course each bill also includes an element of profit. But it’s nothing like as much as you might think. For every £1,000 our domestic customers paid in 2010, we made £5.” E.ON said it was offering its customers help to counter the price rises, such as advice on insulation and the installation of solar panels for £99. But this will be cold comfort to the 140,000 homes that will be plunged into fuel poverty, where people are paying at least 10% of their income towards heating their home, according to comparison site Energyhelpline . It calculates that dual-fuel customers face paying an extra £170 a year following the increases. Mike O’Connor, chief executive of Consumer Focus , pointed out that although wholesale prices are now about one third lower than in 2008, consumer prices have reached an all-time high. “Yet another price rise will leave the average energy bill £1,250 a year. Many consumers worry how they will afford to keep their homes warm this winter given other price rises and flat or falling incomes. They need to know whether these increases are warranted. Customers will feel they didn’t get the benefit when wholesale costs were low,” he said. He continued: “Ofgem has said it is prepared to refer the energy market to the Competition Commission if necessary. That is welcome but the regulator must be prepared to act if it can’t say for certain whether prices are fair. It is even more important these questions are answered with £200bn of investment needed in cleaner power plants and other low carbon programmes set to push bills up further. If consumers are to stomach such price rises, they need to know they are fair.” TheEnergyShop.com recommends that energy users on a standard deal with no exit penalties switch to a three-year fixed deal from EDF . Joe Malinowski, founder of the website, said: “The fact that E.ON’s new prices are lower than those of the other three suppliers to have announced price changes is no reason to accept them. They are still at a massive premium to current fixed deals, which is where the real value lies. “Customers switching to a fixed price deal to 2014 can save themselves £120-£130 a year – over £300 during the fix. We urge customers to do this now while the opportunity still exists.” Energy bills Household bills Consumer affairs Family finances Utilities Jill Insley guardian.co.uk
Continue reading …Four others injured in attack at Von Postbreen glacier on remote island of Spitsbergen A British national has reportedly been mauled to death and four other people injured by a polar bear in Norway. The bear was shot after the attack at the Von Postbreen glacier on the remote island of Spitsbergen, according to the Norwegian news agency NTB and other outlets. A spokesman for the British Foreign and Commonwealth Office said: “Our embassy in Oslo is urgently looking into reports of an incident in northern Norway.” More details soon … Norway guardian.co.uk
Continue reading …Mohammed Sajid Khan, 32, and Shasta Khan, 37 accused of preparing to commit terrorism and holding related information A couple have been charged with preparing for acts of terrorism. Mohammed Sajid Khan, 32, and Shasta Khan, 37, of Oldham, Greater Manchester, are accused of engaging in conduct in preparation for acts of terrorism. The offences are said to have taken place between 10 August last year and 24 July this year. The pair, of Foster Street, are also charged with three counts of possessing a record of information likely to be useful to a person committing or preparing an act of terrorism. Greater Manchester police said both would appear before City of Westminster magistrates’ court on Friday. UK security and terrorism guardian.co.uk
Continue reading …Leader of India’s ruling Congress party is recovering in intensive care unit after surgery for undisclosed ailment in US India’s ruling Congress party says its leader Sonia Gandhi has undergone successful surgery abroad for an undisclosed ailment. A party statement released on Friday said that Gandhi had the surgery Thursday and “the surgeon indicated that the operation was successful.” The statement said that Gandhi was recovering in an intensive care unit. It gave no details of her illness or the location of the hospital. News reports have said the operation took place in the US. Italian-born Gandhi, 64, is the widow of prime minister Rajiv Gandhi, who was asssassinated in 1989. She declined the premiership despite leading the party to win 2004 elections. In her absence the party is being run by a four-member committee including her son, Rahul , who is seen as a prime minister-in-waiting. Sonia Gandhi India guardian.co.uk
Continue reading …They were showered with gifts and money, but a year after the collapse, many of ‘Los 33′ are facing poverty When the San Jose copper mine collapsed on 5 August last year, the 33 men trapped underground were convinced that they would slowly starve to death. But two months later, a drill broke through to their refuge 700 metres below ground, and, after a painstaking rescue operation, they were eventually hauled to the surface before television cameras from around the world. For a brief, glorious, moment, “Los 33″ became a symbol of unity and faith, their rescue an almost unbelievable parable of survival against the odds. The men became superstars: they were cheered by 75,000 football fans at Wembley and invited on all-expenses-paid trips to Disneyland, Israel and Greece. One year after the cave-in, however, most have been returned to poverty, and some are even worse off than before the disaster. Several are struggling with the psychological and physical trauma of their ordeal, and all are struggling with the mixed blessings brought by instant – and unsought – fame. “We were like rock stars. People climbed trees to see us,” said Samuel Avalos, who had only been working at the mine for a few months before the collapse, and has now returned to selling pirate CDs on the street. After the rescue, all 33 received free motorbikes from the Kawasaki corporation, and around $15,000 (£9,000) from Chilean businessman Leonardo Farkas, but the money has long since run out. Avalos’s only regular income is a $500 monthly medical leave cheque, less than half his salary at the mine. “Will you buy my motorbike?” he asks, mid-interview. “Or I have a flag signed by all 33 miners. How much is that worth?” Another miner, Osman Araya used part of his $15,000 to buy a van and now sells vegetables in Copiapo market. Dario Segovia, a former drill operator, sells fruit in the same market. Araya was recently critical of his fellow miners and launched a deliberate call for help when he told Chilean newspaper La Tercera, that “all is not well with the 33″. Many have psychological and medical problems, said Dr Jean Romagnoli, a lead doctor in the rescue operation. “They are taking uppers, downers, stabilisers, I think they are over prescribed … They don’t understand why they are taking them but they are fed up with pills,” he said. “It is not pills they need, but the tools to deal with fame and the tools to renovate themselves.” Psychological treatment has been co-ordinated by the government and a private health insurance company, but many miners find the treatment insufficient, and family members say they ought to be included in the sessions. A handful of the miners – including the gregarious Mario Sepulveda, who acted as the miners’ spokesmen in videos they recorded underground – have built careers giving speeches and public appearances, but most are suffering from financial and psychological problems. “They are about to hit very, very hard times,” said Romagnoli, who is in close contact with many of them. “They do not know how they are going to get through the next month.” Yonni Barrios, the miner who served as a doctor to his companions – and gained notoriety when both his wife and lover showed up at the rescue – now has silicosis, an irreversible lung disease. Last month, producer Mike Medavoy announced that he had bought the rights to their story. The deal’s details have not been released, but filming is expected to begin in 2012. Medavoy has said he will focus on just a few of the 33 men, but a contract that the miners signed with their lawyers last December stipulates that they will all share certain revenues – including any authorised book, movie or collective testimony. Meanwhile, the men are hoping to receive settlements from two lawsuits: one against the government for allowing the unsafe mine to remain open after years of warnings, and one against the mine owners. They are seeking $541,000 each from the government and an undetermined amount from the company. When the news broke last month that the miners planned to sue the same government that had organised the estimated $11m rescue operation, they were denounced as money grabbers. They shot back that they only had to be rescued because the mine was so outdated, with unsafe working conditions long recognised by the government. That argument has been echoed by local politicians such as Brunilda Gonzalez, mayor of Caldera, who said the government was still not paying enough attention to safety regulations. She has promised to boycott a commemorative ceremony organised by President Sebastian Piñera on Friday in Copiapo. “We as a municipality are not going to participate because this is all a media and political show,” she said. Araya has also said he will not attend official ceremonies, because the other survivors have failed to honour a pact to share revenue from speaking engagements and motivational talks. “I want to separate myself from all this. I am not participating in anything because it pains me to see how [the other survivors] have behaved. They’re just looking for the TV cameras,” he said. Romagnoli lamented that the men had not been converted into ambassadors for workers’ safety. “In any other country they would have been national heroes … building up the country’s image around the world. Why have they been abandoned?” Living proof fame is a double-edged sword Mario Sepulveda The charismatic leader who acted as a spokesman for the 33 in their underground video has taken his show above ground. “Super Mario” now lectures around the world. In Chile, he volunteers at schools in poor areas, giving motivational lectures. Criticised by other miners for taking the lion’s share of the cash, he seems a natural in his new role as showman. Omar Reygadas The calm mining veteran led one of the three shifts underground, has been nominated official spokesman for the 33 men, and has travelled widely to deliver speeches. A former union leader, Reygadas has been key in organising the miners’ financial affairs. Franklin Lobos A former professional footballer, Lobos was the only one of the 33 to have an inkling of the double-edged sword that is fame. Wisely limiting his exposure to the media, he has chosen to rebuild his life with his first love – football. Today Lobos travels abroad as invited guest of Fifa and works full time at a Chilean football club. Edison Pena The jogger who ran the New York marathon and briefly appeared on the Letterman show is torn between his high-voltage renditions of Elvis songs and the trauma of the ordeal. Volatile in interviews, Pena has suffered deeply from the psychological effects of his entrapment. Mario Gomez At 63, Gomez was the oldest of the miners and had difficulty breathing even before a massive rock collapse trapped him in the bottom of the San Jose mine. Today he is diagnosed with more advanced silicosis and will probably be placed on full medical pension shortly. Despite more than 50 years working as a miner, Gomez can no longer avoid the flashbacks from the collapse. His family stays close, allowing Gomez the support he needs. Yonni Barrios Ridiculed by the press for having a lover and a wife waiting for him topside, Barrios has been besieged by bizarre offers to capitalise on his infidelity, including a $100,000 offer if he would dump his lover and return to his wife. As well as the paparazzi, Barrios is stalked by encroaching lung problems. Diagnosed with silicosis, he is now banned from working in the mines and runs a business from his home in Copiapo, the city near the collapsed mine. Chilean miners rescue Chile Jonathan Franklin guardian.co.uk
Continue reading …• Asian markets plunge on back of Dow and FTSE falls • Worst sell-off for two years • Analysts predict more losses on back of US jobless data Financial markets were in turmoil after a collapse in share prices around the world. Fears that the the world economy could slip back into recession led London’s benchmark FTSE 100 Index to lose 50bn billion of its value – its biggest fall of the year. Asian stock markets also plummeted as investors sold riskier assets amid fears the US is heading back into recession and Europe’s debt crisis is worsening. Japan’s Nikkei 225 stock average slid 3.4% to 9,328.74 and Hong Kong’s Hang Seng dropped 4.4 % to 20,912.60. South Korea’s Kospi index shed 3.6 % to 1,945 and Taiwan’s benchmark slumped 4.4 % to 7,952.98. Australia’s benchmark dropped 4% to 4,103.10. The slump in the far east came after the US stock market suffered one of its worst days ever on Thursday, with the Dow Jones Index plummeting 4.3%. The plunge in share prices came amid rising fears that Italy and Spain, the eurozone’s third and fourth largest economies, may need bailouts and widespread worries over the US’ economic recovery. Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, said markets could continue to fall on Friday, particularly if closely-watched jobs data from the US reveals a further slowdown in the economy. He said: “Investors are pessimistic at the moment, the general market mood is to try to prepare for the worst. “It’s difficult to see anything positive coming from the data today unless they reveal absolutely barnstorming figures.” Worried traders are waiting for today’s release of US unemployment figures for July, which is expected to show weak job growth and a rise in the unemployment rate. The plunge in global markets is further bad news for Chancellor George Osborne, who has faced increasing pressure over the pace of Britain’s economic recovery. Robert Chote, chairman of the Office for Budget Responsibility, on Thursday said the watchdog’s growth forecast of 1.7% – made in March – was likely to be missed. GDP increased by a lacklustre 0.2% in the second quarter of 2011 after consumers reined in spending. The growth fears led the Bank of England to hold interest rates at their record low of 0.5%. It is understood that the government is monitoring the global markets closely and the chancellor is receiving regular updates. A Treasury spokesman said: “This is a time of uncertainty in the international economy. Because of our difficult decisions to reduce the deficit and tackle our debts, Britain has been stable during this time. “The economy is growing and creating jobs.” The collapse of shares in Europe was sparked after the cost of borrowing for the Spanish government rose sharply in a debt auction – indicating lenders have lost confidence in the country’s ability to handle its debts and avoid a bailout. European Commission president Jose Manuel Barroso urged European leaders to rapidly reassess “all elements” of the eurozone’s bailout fund, known as the European Financial Stability Facility (EFSF), including its size. The EFSF was equipped with new pre-emptive powers last month, including the ability to buy up distressed government bonds to support their prices or extending credit lines to countries before they are in full-blown crisis mode. That was a recognition that rescue packages like the ones given to Greece, Ireland and Portugal would be far too expensive for big economies like Italy and Spain. But analysts have said the fund will not be able to properly use these new powers at its current size of €440bn(£383bn). The FTSE 100 Index closed down 3.4%, or 191.4 points, at 5393.1 – its biggest daily drop since March 2009. It follows a fall of 2.3% yesterday, which means that �85 million has been wiped off its value in the past two days. It is now at its lowest point for nearly a year. The Dow Jones lost 512.76 points which was the steepest points fall since December 2008. It was the ninth worst fall by points for the Dow. Stock markets European debt crisis European banks US economy Economics guardian.co.uk
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