An emotional Thomas Bjorn spoke to the media following his opening round five-under-65 at the British Open Thursday. Bjorn’s father died two months ago, and he broke down when asked how his death had effected him. (July 14)
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Shares go up 10% in after-hours trading on news of figures from Larry Page’s first full quarter as chief executive Google defied analysts’ forecasts with second-quarter earnings up 36% year-on-year to $2.5bn (£1.5bn) and revenues up 32% to a record $9.2bn in co-founder Larry’s Page’s first full quarter as chief executive. Wall Street, which three months ago marked the company’s shares down over fears that it was losing control of costs, pushed its shares up 10% to $581 in after-hours trading. Page, who ran the company for its first three years until 2001, when Eric Schmidt took over, said in a statement that “we had a great quarter … I’m super excited about the amazing response to Google+ [its new social network intended to compete with Facebook] which lets you share just like in real life.” After subtracting Google’s advertising commissions, its retained revenue stood at $6.9bn – nearly $400m above analyst projections. Google fared so well because advertisers were willing to pay higher prices to promote their products on the internet’s largest marketing network. The average price paid per advertising click on Google’s network rose 12% from last year. Internet users clicked on ads 18% more than they did at the same time last year. Google is tightening its grip on search and advertising, pulling ahead of Microsoft, which has been consistently losing money in its Bing search business since 2005. Jordan Rohan, an analyst at Stifel Nicolaus, said: “Google should be viewed as a growth company again this quarter. This is well beyond expectations from Wall Street. Clearly, the combination of mobile search, Android, ad exchange, YouTube, and the core search businesses, they’re all doing well. Google is no longer a one trick pony. You might say six trick pony if you count Google+.” Page delivered the impressive results while vowing to bring in more engineering talent and investing heavily in more data centres so that Google can keep expanding into new fields. Google’s newest venture, Google+, debuted two weeks ago and has grown quickly. But the company still faces difficult questions in the longer term over a number of outstanding patent fights in the courts relating to its Android smartphone operating system. Although Android phones now have the largest share of smartphones worldwide, Oracle is suing it for up to $6.1bn for infringements of its Java code, while Microsoft has sued a number of mobile handset makers claiming that their Android phones infringe its patents. So far it has signed up five companies which are paying a per-handset fee of about $5. Google added 2,452 employees in the second quarter, including 450 workers inherited as part of the company’s $700m purchase of airline fare tracker ITA Software. Google United States Internet Larry Page Search engines Technology sector Charles Arthur guardian.co.uk
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5.5m homes spend over 10% of income on fuel, and bills will rise further to fund new power networks Figures show a huge rise in UK households in fuel poverty, even before expected rises in the price of gas and electricity, and charities predicted that this winter would see millions more people struggling to keep warm at home. The Department of Energy and Climate Change statistics show 700,000 more UK families fell into fuel poverty in 2009, bringing the total to 5.5 million — one in five of all households. In the UK, fuel poverty is when a household needs to spend more than 10% of its income on fuel in order to heat its home to an adequate standard, and have hot water and run lights and appliances. The department admitted that 100,000 more families in England alone were expected to go into fuel poverty this year. The figures came less than a week after British Gas said its gas prices will rise by an average of 18% and electricity bills by 16%. Scottish Power has also raised its gas prices by 19% and electricity by 10%, while other power companies are expected to follow suit, blaming wholesale gas prices. The government has admitted that bills will have to rise additionally to pay for a major rebuilding of the UK’s power networks. Michelle Mitchell, charity director at Age UK, said it was astonishing that help for poorer households through the Warm Front subsidy scheme was being phased out despite “scandalous” power bills. “The promised solutions contained in the [government's] Green Deal don’t come into force until late 2012 – too late for the millions of people struggling to heat their homes this winter,” she added. Dave Timms, campaigner at Friends of the Earth, said the department’s figures showed the necessity of putting more money into the insulation of homes to ensure no energy was wasted. “It is a national disgrace that millions of people were suffering in cold homes they can’t afford to heat – insulating them properly would help vulnerable households save money on fuel bills and stay warm and healthy,” he said. Climate change minister Greg Barker admitted the fuel poverty figures were unacceptable but blamed past Labour policies and the state of the UK’s housing. “The fact is that homes in the UK are amongst the most expensive to heat in Europe, yet we don’t have the most expensive gas and energy prices,” he told BBC Radio 4′s You and Yours programme. “Next year [we start] the most ambitious home improvement since the second world war, where we’re not just putting a bit of lagging in people’s lofts, but [will] transform, on a whole house basis, millions of homes over next decade.” The Green Deal promises to insulate all homes, with the cost being covered by savings from future energy bills. But the government is phasing out Labour’s Warm Front programme which provided grants for draughtproofing and help with energy bills. The department’s figures of an extra 100,000 in fuel poverty hides the true hardship caused by rising fuel prices for millions of the UK’s poorest people, according to Consumer Focus. Spokeswoman Audrey Gallacher said this was because the department’s predictions did not take into account that four of the big six energy providers have yet to announce expected price increases. “If these [new price rises] are in line with British Gas and Scottish Power, around 12 million people, or 6.4 million British households, are likely to be in fuel poverty,” she said. Gillian Guy of Citizens Advice said the figures meant at least 5.5 million people in the UK were already living in freezing conditions through self-rationing and disconnection – with private tenants among those at highest risk of fuel poverty. “Living in a cold home has a devastating impact on people’s physical and mental health,” she said, while others pointed out that the NHS spent £859m each year treating cold-related illnesses due to poorly insulated homes. Shadow climate change minister Luciana Berger said that the government had removed support for households by scrapping Labour’s Warm Front Scheme, which provided two million households with heating, and reducing winter fuel payments by up to £100: “Ministers must act now to deliver warm homes, rather than leaving millions shivering.” Energy bills Poverty Energy Consumer affairs Household bills Terry Macalister guardian.co.uk
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Prosecutors in perjury trial of baseball pitcher violate order barring certain information from being given to jury A Washington judge has declared a mistrial in the perjury trial of baseball pitcher Roger Clemens after prosecutors violated an order that barred certain information from being given to the jury. Judge Reggie Walton was furious at prosecutor Steven Durham for introducing evidence that appeared to bolster the credibility of a future witness, Clemens’s former New York Yankees team-mate Andy Pettitte, and referred to Pettitte’s wife, Laura. “A first-year law student would know that you can’t bolster the credibility of one witness with clearly inadmissible evidence,” Walton said to Durham. “I don’t see how I un-ring the bell.” The mistrial was a major setback for the US government, which spent a year preparing the case. Four days were spent selecting a jury. Clemens, one of only four pitchers to strike out more than 4,000 batters, is facing charges that he lied to the House of Representatives committee on oversight and government reform when he denied taking steroids and human growth hormones between 1998 and 2001. The one-time Hall of Fame contender has denied taking drugs or lying to Congress. Walton said the parties would now have to discuss whether retrying Clemens, 48, would violate the constitutional protection against double jeopardy, which protects an individual from being tried twice for the same offences. A hearing on the double-jeopardy issue will be on 2 Sept – but no new possible trial date was set. In admonishing the prosecutor, Walton said Durham had violated his order during his opening statement as well. The judge also said that defence lawyers should have raised objections immediately when the information was played. The video showed Democratic representative Elijah Cummings making references during the 2008 hearing about Pettitte, who admitted to using steroids, and conversations Pettitte said he had with his wife about Clemens talking about using human growth hormones. Clemens has said that Pettitte, once a close friend, had misremembered and misheard the conversation which had been relayed to his wife Laura. Walton had previously excluded any initial references to Laura Pettitte. Clemens pitched for four teams during his 24-year career in baseball, including the Yankees, Boston Red Sox, Toronto Blue Jays and Houston Astros.He won the Cy Young Award, which each year honours the best pitcher in each league, seven times. US sport United States guardian.co.uk
Continue reading …Now the FBI is looking into Murdoch media’s phone-hacking activities in the USA
July 14, 2011 No Comment
Click here to view this media Gee, I wonder if this will be discussed on any of the Fox News shows : Responding to allegations from several Washington lawmakers, the FBI has opened an investigation into whether Rupert Murdoch’s News Corp. attempted to hack into the telephones of victims of the Sept. 11, 2001, attacks and the families of those who died. According to federal law enforcement sources, the decision by the FBI’s field office in New York to launch the criminal probe came after several members of Congress raised concerns in letters to FBI headquarters, questioning whether reporters for the media empire may have tried to compromise Sept. 11 victims just as they reportedly hacked into the phones of numerous individuals in England. “We are doing this based on their requests,” said an FBI source, who asked not to be identified because the investigation is just getting underway. “But after reviewing the letters and their allegations, and after consultation with the U.S. Attorney’s Office in New York, we are proceeding.” At the Department of Justice, officials also acknowledged they are “reviewing” the allegations by Rep. Peter T. King (R-N.Y.), chairman of the House Homeland Security Committee, and others that Sept. 11 victims and families may have been put at risk by News Corp. “If these allegations are proven true,” King wrote in his letter to FBI Director Robert S. Mueller III, “the conduct would merit felony charges for attempting to violate various federal statutes related to corruption of public officials and prohibitions against wiretapping. Any person found guilty of this purported conduct should receive the harshest sanctions available under law.” Maybe Bill O’Reilly can invite King — a frequent guest — onto his show to discuss this, eh? The New York Times has more, as does the U.K. Telegraph . Question of the Day: Will Darrell Issa investigate?
Continue reading …Rupert Murdoch and son James are refusing the summons to appear before Parliament on Tuesday. According to one member and committee chair, the Murdochs will be in contempt of Parliament if they fail to appear at 2:30pm and testify about their media empire’s phone hacking scandal, and their absence…
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Share prices fall amid fears fatal weaknesses will be found in at least half a dozen institutions Financial markets are bracing themselves for a nervous weekend amid fears that today’s annual health check of Europe’s banks will find fatal weaknesses in at least half a dozen institutions, piling more pressure on the embattled single currency. Share prices fell and borrowing costs in vulnerable countries such as Italy and Spain rose as dealers awaited the results of the stress tests on 90 European banks, which will be announced once the markets have closed for business on Friday. Amid growing concern that Europe’s policy makers have allowed the debt crisis to spread to the major economies of monetary union, the announcement will provide details of the exposure of individual banks to debt writedowns or defaults. While the UK’s banks are expected to pass the stress tests, there are fears that the results could add to the market jitters rather than provide reassurance. The FTSE100 was down nearly 60 points in London on Thursday amid anxiety that the tests will show banks do not have enough capital to cope with bad debts. Although the tests have been toughened up since last year, they do not include the possibility of a Greek default, seen as increasingly likely by the markets. Italy had to pay record interest rates of 5.9% to persuade investors to buy its bonds, while borrowing costs for Spain also rose. Estimates of how many banks will need extra capital range from nearly a third of the 90 European banks, according to the ratings agency Moody’s, to nine banks needing €29bn, according to the average opinion in a poll of investors by Goldman Sachs last month. Six Spanish banks are expected to fail, although analysts polled by Reuters expect between five and 15 banks to fail. Marie Diron, senior economic adviser to the Ernst & Young eurozone forecast, said: “The stress tests are unlikely to bring much relief to the current tensions that plague the eurozone. They will probably show a small minority of banks failing, mainly in the eurozone periphery, with possibly a few banks in core eurozone countries failing too. But the credibility of the stress tests has been undermined by what is perceived to be too lenient assumptions.” The tests – discredited last year when Ireland’s banks collapsed four months after being given a clean bill of health by the regulators – are already causing controversy as the number of banks being tested was originally 91. However, the German bank Helaba pulled out on Wednesday in a dispute with the European Banking Authority, which is overseeing tests by domestic regulators. The UK’s banks, two of which have already been bailed out, are believed to have passed. The tests are conducted by national regulators across Europe but compiled by the European authority, which requires banks’ crucial core tier one capital to remain above 5% after worst-case scenarios, which include a drop in GDP over two years of 4%, compared with 3% for last year’s tests. Tamara Burnell of M&G Investments said: “In our view it is a bit like taking a driving test: you can pass the test and yet still be a terrible driver. The real test of whether anyone trusts you is whether people are prepared to get in the car with you. So whether or not banks pass the 5% core tier one stress test hurdle, the real test is whether investors and depositors trust them with their money over the long term, and there’s a long way to go before the European banks rebuild their reputation after a series of offences.” While an outright default by a European nation has not been included in the test – despite the fact that officials are now prepared for a Greek default – Christopher Wheeler, banks analyst at Mediobanca, notes that only about 20% of the government bonds held by banks are being stress tested because they sit in their trading books, rather than the banking books where bonds are held to maturity. Making assumptions about the “haircuts” – losses on government bonds across Europe – Mediobanca estimates that €81bn could be knocked off banks’ capital, 9% of the sector, in 2012. It is not just banks’ holdings of government bonds that are important, but also the way that governments have stepped in to support banks during the crisis, making the health of banks and their governments inextricably linked. Burnell said: “What we need to test is the ability of sovereigns to separate themselves from their banks.” Euro Stock markets Banking Currencies Europe Jill Treanor guardian.co.uk
Continue reading …Share prices fall amid fears fatal weaknesses will be found in at least half a dozen institutions Financial markets are bracing themselves for a nervous weekend amid fears that today’s annual health check of Europe’s banks will find fatal weaknesses in at least half a dozen institutions, piling more pressure on the embattled single currency. Share prices fell and borrowing costs in vulnerable countries such as Italy and Spain rose as dealers awaited the results of the stress tests on 90 European banks, which will be announced once the markets have closed for business on Friday. Amid growing concern that Europe’s policy makers have allowed the debt crisis to spread to the major economies of monetary union, the announcement will provide details of the exposure of individual banks to debt writedowns or defaults. While the UK’s banks are expected to pass the stress tests, there are fears that the results could add to the market jitters rather than provide reassurance. The FTSE100 was down nearly 60 points in London on Thursday amid anxiety that the tests will show banks do not have enough capital to cope with bad debts. Although the tests have been toughened up since last year, they do not include the possibility of a Greek default, seen as increasingly likely by the markets. Italy had to pay record interest rates of 5.9% to persuade investors to buy its bonds, while borrowing costs for Spain also rose. Estimates of how many banks will need extra capital range from nearly a third of the 90 European banks, according to the ratings agency Moody’s, to nine banks needing €29bn, according to the average opinion in a poll of investors by Goldman Sachs last month. Six Spanish banks are expected to fail, although analysts polled by Reuters expect between five and 15 banks to fail. Marie Diron, senior economic adviser to the Ernst & Young eurozone forecast, said: “The stress tests are unlikely to bring much relief to the current tensions that plague the eurozone. They will probably show a small minority of banks failing, mainly in the eurozone periphery, with possibly a few banks in core eurozone countries failing too. But the credibility of the stress tests has been undermined by what is perceived to be too lenient assumptions.” The tests – discredited last year when Ireland’s banks collapsed four months after being given a clean bill of health by the regulators – are already causing controversy as the number of banks being tested was originally 91. However, the German bank Helaba pulled out on Wednesday in a dispute with the European Banking Authority, which is overseeing tests by domestic regulators. The UK’s banks, two of which have already been bailed out, are believed to have passed. The tests are conducted by national regulators across Europe but compiled by the European authority, which requires banks’ crucial core tier one capital to remain above 5% after worst-case scenarios, which include a drop in GDP over two years of 4%, compared with 3% for last year’s tests. Tamara Burnell of M&G Investments said: “In our view it is a bit like taking a driving test: you can pass the test and yet still be a terrible driver. The real test of whether anyone trusts you is whether people are prepared to get in the car with you. So whether or not banks pass the 5% core tier one stress test hurdle, the real test is whether investors and depositors trust them with their money over the long term, and there’s a long way to go before the European banks rebuild their reputation after a series of offences.” While an outright default by a European nation has not been included in the test – despite the fact that officials are now prepared for a Greek default – Christopher Wheeler, banks analyst at Mediobanca, notes that only about 20% of the government bonds held by banks are being stress tested because they sit in their trading books, rather than the banking books where bonds are held to maturity. Making assumptions about the “haircuts” – losses on government bonds across Europe – Mediobanca estimates that €81bn could be knocked off banks’ capital, 9% of the sector, in 2012. It is not just banks’ holdings of government bonds that are important, but also the way that governments have stepped in to support banks during the crisis, making the health of banks and their governments inextricably linked. Burnell said: “What we need to test is the ability of sovereigns to separate themselves from their banks.” Euro Stock markets Banking Currencies Europe Jill Treanor guardian.co.uk
Continue reading …David Letterman seems to be making news more than mocking it lately: Just days after a drunk bashed his way into the Ed Sullivan Theater, where Letterman’s Late Show is taped, another man has been charged with breaking into the same storied building. New York City cops say the 42-year-old…
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• Republicans insist on spending cuts without raising taxes • Obama sets 22 July deadline for action • JP Morgan chief warns of severe damage to global economy if US defaults The US faces the prospect of a “catastrophe” as President Barack Obama stands firm against Republican demands for deep spending cuts without any tax increases as the condition for raising the country’s borrowing limit and avoiding a debt default. With Washington gripped by a growing sense that it may be too late to avert a crisis, the president has said he will give the increasingly rancorous negotiations until the end of next week to reach agreement on the terms for raising the US’s $14.3 trillion (£8.9tn) debt ceiling. The White House has said that if there is no agreement by 22 July, then discussion about budget cuts and taxes should be abandoned in favour of legislation dealing solely with raising the debt ceiling before the borrowing limit is reached on 2 August. But the Republicans have rejected legislation without agreement on budget cuts. With European leaders also facing a potentially ruinous debt crisis, a leading Wall Street figure described the prospect of a US default as catastrophic. Jamie Dimon, chief executive of JP Morgan, one of Wall Street’s biggest banks, said: “No one can tell me with certainty that a US default wouldn’t cause catastrophe and wouldn’t severely damage the US or global economy. And it would be irresponsible to take that chance.” On Wednesday, Ben Bernanke, the chairman of the Federal Reserve, warned of a “huge financial calamity” if a political agreement is not reached. He told Congress a default would “send shockwaves through the entire financial system”. Hours later, the credit ratings agency Moody’s warned that it may downgrade the US’s AAA credit rating, saying there is a “rising possibility” that no deal will be reached by next month’s deadline. On Thursday, Moody’s threatened to downgrade the AAA ratings of government lenders Fannie Mae, Freddie Mac, Federal Home Loan Banks and Federal Farm Credit Banks, illustrating the vulnerability of the already depressed housing market to a government default. China, the US’s biggest creditor, added to the pressure (on Thursday by publicly urging Washington to protect investors’ interests. The dollar continued its fall as investors shifted to other assets such as gold, which hit a record high on Thursday. At the heart of the political wrangling is a determination by each side to blame the other for a stagnant economy, with unemployment remaining stubbornly high at above 9%. The latest economic figures showed only a 0.1% increase in retail sales and a minor drop in the number of new jobless claims – by 22,000 to 405,000 last week – suggesting the rate at which companies are laying off workers is falling. If the debt ceiling is not raised by 2
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