December 2011

Thirteen Bodies Found in Truck in North-Eastern Mexico

December 27, 2011

(MENAFN – Khaleej Times) The bodies of 13 people were found in a truck that had been abandoned in the north-eastern Mexican state of Tamaulipas, local officials said Monday. In the truck, which …

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Shell contains Nigeria’s oil leak

December 27, 2011

(MENAFN) Royal Dutch Shell PLC said that it managed to contain Nigeria’s oil spill before reaching the country’s coast, reported AP. The company added that the leak of around 40,000 barrels from …

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US Christmas online shopping up 6.4%

December 27, 2011

(MENAFN) IBM’s Smarter Commerce unit’s chief strategy officer, John Squire, said that during Christmas Day, online shopping in the US increased 16.4 percent from the same period in 2010, reported …

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Worst Nigeria Offshore Oil Spill In Over A Decade Reportedly Contained

December 26, 2011

ABOARD THE BONGA FLOATING OIL VESSEL (AP) — The worst Nigeria offshore oil spill in more than a decade has been contained before reaching the West African nation’s coast, officials with Royal Dutch Shell PLC said Monday, less than a week after one of its lines bled crude into the Atlantic Ocean. An investigation into how the spill of less than 40,000 barrels — or 1.68 million gallons — happened remains ongoing, though company officials acknowledged workers only discovered the leak after seeing a sheen of crude in water surrounding its Bonga offshore oil field. Meanwhile, Shell officials say the company will clean up another spill it discovered while containing its own — highlighting how prevalent pollution remains in oil-stained Nigeria after more than 50 years of production. “We can undeniably say we traced our oil … and stopped it,” said Cliff Pain, who manages the Bonga operation for a Shell subsidiary. Shell organized a helicopter flight Monday for journalists to see the Bonga field — controlled from a large ship as opposed to a stationary rig — about 75 miles (120 kilometers) off Nigeria’s coast. There, waters appeared free of the oil sheen as ships continued to patrol along the underwater lines linking the vessel to oil fields and transfer buoys for filling tankers. The leak discovered Dec. 20 came from a break in a flexible line about 360 meters out from the vessel that sends oil to tankers, Pain said. While the vessel has a variety of gauges to check pressure on the line, it wasn’t until daylight broke that workers noticed a sheen surrounding the Bonga vessel, he said. It takes about 25 hours to fill a waiting tanker with 1 million barrels of oil from the vessel, Pain said. That means the leak could have spewed for hours before being noticed. At its height, Shell statistics show the sheen spread across about 350 square miles (900 square kilometers), matching an estimate earlier issued by an independent watchdog group called SkyTruth. Nigerian government officials previously said the spill only affected an area a third that size Using ships and aircraft, workers spread chemical dispersants to break up the oil, which also evaporated in the region’s warm water and air, said Steve Keedwell, a Shell employee who helped oversee the cleanup operation. Shell ultimately stopped the sheen about 11 miles (18 kilometers) before it made landfall, Pain said. However, workers then discovered a separate oil spill around the mouth of a river in Delta state, said Mutiu Sunmonu, Shell’s Nigeria country chairman. Sunmonu said samples of the oil showed it came from a different source, though the company would clean it up as well. “When I sighted it myself, my initial reaction was anger, but I told myself: ‘You know, you just cannot afford to be angry, just deal with it,’” Sunmonu said. The Nigerian group Environmental Rights Action, which monitors spills around Nigeria’s oil-rich southern delta, has blamed Shell for the new spill. Nnimmo Bassey, the group’s executive director, could not be immediately reached for comment Monday night. Shell operates the Bonga field in partnership with Italy’s Eni SpA, Exxon Mobil Corp., France’s Total SA and the state-run Nigerian National Petroleum Corp. It produces about 200,000 barrels of oil a day — around 10 percent of production in Africa’s most populous nation. The field remains shut down and Shell officials offered no estimate Monday of when production could resume at a field vital to Nigeria’s government finances. Nigeria, an OPEC member nation producing about 2.4 million barrels of crude oil a day, is a top supplier to the United States. However, pollution from spilled oil stains its Niger Delta region, with crude lapping against beaches and leaving a black ring around creeks in an area about the size of Portugal. Some environmentalists say as much as 550 million gallons of oil poured into the delta during Shell’s roughly 50 years of production in Nigeria — a rate roughly comparable to one Exxon Valdez disaster per year. Many blame Shell and foreign companies working in Nigeria for the pollution. However, Shell in recent years has blamed most of its spills on militant attacks or thieves tapping into pipelines to steal crude oil, which ends up sold on the black market or cooked into a crude diesel or kerosene. Talking with journalists, Sunmonu acknowledged that the limited spill, open ocean and favorable weather had helped Shell quickly contain the spill. If it had been on land, the oil could have sunk into the soil, remaining there for years, he said. It also would have pushed Shell into negotiations with village elders to clean up the spill, something it often contracts other companies to handle. Many view the company with hostility after its years in the delta, and its employees remain targets of kidnap gangs and militants. “You don’t have communities to contend with” on the ocean, Sunmonu said. ___ Online: Royal Dutch Shell PLC: http://www.shell.com Shell’s Nigeria spill website: http://bit.ly/rqfnxi ___ Jon Gambrell can be reached at www.twitter.com/jongambrellAP.

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Odysseas Papadimitriou: Card Hub’s 6 Credit Predictions for 2012 Offer Glimpse of Future for Consumers’ Wallets

December 26, 2011
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Gary M. Krebs: The Gift of Being Laid Off

December 26, 2011

December: You think about decorating your home, giving and receiving gifts, and spending quality time with your family. Well, this holiday season I’ve been given the gift of a lot of time to spend with family, since I no longer have my job to go to. You never think it will happen to you, but after a quarter of a century in the book publishing industry and having worked on countless bestsellers, I am now among the millions of unemployed Americans. Tuesday December 6, 2011 was a soggy day right from the start. My stomach churned all along the gloomy Metro North train ride from Fairfield, CT to Grand Central Station, New York City. I felt increasingly nauseous as I made my way to the McGraw-Hill office on Sixth Avenue. I was about to call my boss to tell him I had the flu and was going to head home. As I was about to pick up the phone, I saw that he was calling me first. An odd coincidence, but I shrugged it off. “Gary,” he said, “Please report to the Executive Conference room immediately.” I thought I would throw up as I hung up. I knew on my way to the elevator I was going to be fired or laid off. Sure enough, when I entered the Executive Conference room and saw my boss with our HR Director and all the open folders, it became clear it was the former, and I was part of the company’s massive restructure. I felt dizzy and feverish as I returned to my office. All kinds of panicky thoughts hit me: What do I say to my wife? What do I say to my staff and colleagues? What’s better, Mylanta or Pepto-Bismol? Somehow I managed to convey the bad news to my wife and make the long trek on Metro North back to Fairfield, CT. I arrived home, threw up, and passed out under the covers. At some point later in the afternoon, I was awoken by a ringing telephone. It was my wife informing me that the car had broken down and she was stuck in the rain with our two cats, who had just been neutered at the clinic. “What else is going to go wrong!” I shouted as I drove out in the rain, “Whatever it is, bring it on –why not?!” The next day couldn’t have been more opposite. The sun was shining, my fever broke, and my stomach was feeling better. I actually slept later than I had in years — unbelievable, seven o’clock instead of my usual five a.m.! Two extra hours, yippee! The world suddenly seemed like it was filled with incredible opportunities. I felt hopeful, optimistic — and relieved. No more neck-stiffening commute, no more corporate pressure, no more making budget. Finally, I would have some time to devote to my lifelong ambition: screenwriting. And hey — now I could spend more time with my family, what a blessing around the holidays. I opened my personal Inbox and saw an email that had been sent to me the soggy day before. I didn’t recognize the name of the sender, but in the subject line he said he was a friend of a friend. I opened it and read the words: “I am a TV and film producer… your script… is easily the best written screenplay I’ve read in ages. If you have any time before the holidays, it would be a pleasure to meet you!” Wow — talk about timing. I hadn’t felt that inspired and elated since I had received a scholarship to the Dramatic Writing Program at NYU’s Tisch School of the Arts years earlier. Someone with major Hollywood credits had validated my work — and on the same day I was laid off. What are the odds? I did speak to the producer, who since then has been incredibly generous with his time, advice, and contacts. Now I am in wait-and-see mode as my script makes its rounds. I’m working on another screenplay. And, of course, I’m putting out feelers in the industry for a job… all options on the table. What will be next for GMK? I don’t know… hopefully it won’t be a twist-ending holiday gift from the Unemployment Magi.

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Dave Johnson: What Next in the Fight Over Who Our Economy Is for?

December 26, 2011

Who is our economy for , anyway? In the United States, We, the People are supposedly in charge, and our country and economy are supposed to be managed for the public good. But that isn’t how things have been working out, is it? Let’s take a quick look at America over the last few decades. We used to have a social contract. We invested in top-notch infrastructure (like the interstate highway system) and education (the best universities and research), and then tax the resulting gains at very high rates, to recirculate those gains for the benefit of all of us. Broken Social Contract Then the contract was broken. Starting in the 1970s a cabal of wealthy businessmen and conservative ideologues organized and funded an attack on We, the People government, manipulating public opinion and our political system, gutting the regulations and trade rules that protected us and our way of life, privatizing — selling off things We, the People own — and killing the tax-and-invest cycle so they could keep the gains from all of that prior investment for themselves. Blanket Of Propaganda To provide cover for the operation these agents of the 1% spread a thick blanket of propaganda, using every technique in the modern marketing book. They divided us by race, religion, gender, sexual preference, even pitting people who like quiche and lattes against those who like beer and sausage. To cripple potential opposition they infiltrated and fractured key institutions, and turned the public against the news media. They developed a professional career-path system that rewards those who play along with the corruption and destruction and punishes those who do not. To cripple dissent they used ridicule, shame and intimidation. Destructive Choices Come Home To Roost Since then things have steadily fallen apart. The infrastructure is crumbling. Unemployment is extreme. The country has very high debt. The trade deficit is extreme. Half of us are poor or nearly poor. Inequality is at the highest levels. Bailouts For The 1%, Sell-Outs For The 99% When things hit the fan it became clear that our country is no longer run for the good of We, the People . When it came down to it, a few got special treatment, the rest of us got… uh, less-than-special-treatment. (And weren’t even kissed.) When the financial crisis occurred Congress was told they literally had only hours to come up with hundreds of billions to bail out the too-big-to-fail banks, and they did — with almost no conditions. We know now that the Federal Reserve also stepped up, providing trillions to the big banks, even hundreds of millions to bankers’ spouses ! State and local governments, institutions and smaller businesses? The unemployed and millions facing foreclosure? Not so much. Plutocracy Not Democracy They provided assistance for the giant financial institutions of the 1%. Instead of providing assistance to the 99% — We, the People — our government cut the things We, the People do for each other. It was made clear that this country is now a plutocracy, not a democracy . System Of Control Breaking Down It is clear where we are. But it is also clear that the system of control is breaking down. The elections of 2006 and 2008 shook the foundations. Democracy tried to reassert control. The behind-the-scenes system of lobbyists writing legislation that passes under cover of “studies” from corporate-front think tanks, telling us this is for our own good, propelled by a flurry of corporate-funded op-eds, stopped working. After the bailouts for banks / sell out for the rest of us, people started figuring things out. In response the 5-4 Supreme Court handed down the Citizens United decision, flooding the system with corporate money. Instead of stealth takeover masked by propaganda we now see blatant grabs of wealth and raw power poorly disguised. Now the control is in our faces every day. Even constant filibusters of acts that might help We, the People were no longer enough to keep a lid on. So now it is shutdowns, hostage-taking, refusal to follow laws, refusal to prosecute, threats to take down the government and/or the economy. Now more visible methods of suppression are in use — batons, tasers and pepper spray. Waking Up Everyone has been frustrated, discouraged, betrayed, scared and angry but without a focus for action. Then came the Occupy movement, people actually showing up and showing how! It resonated. People responded, and the conversation of the country was pulled out of the propaganda fog, at least for a while. Stephen Lerner, interviewed by Sarah Jaffe for AlterNet , discusses where we go from here, saying, “[I]t’s an exciting feeling to see something a lot of people spent a lifetime hoping for –this kind of dramatic increase in activity that targets financial capital, those who really control the country.” On Occupy Wall Street, Lerner says, Everybody knows they’re getting zapped by banks, and what’s so good about Occupy is that it’s put that front and center. The fact that they were in Wall Street, I think everybody forgets. It was not Occupy a park somewhere, it was the fact that it was in the middle of the financial district. And I think on an intuitive level, people all over the political spectrum understand that those guys are at the center of how the economy is organized in a way that doesn’t work for most people. On Wall Street’s position in our economy, I don’t think people are mad at somebody who invented a product or founded a company. It’s that people see that Wall Street is not productive. Their wealth and their riches, they do not come through any normal means — they come through cheating and gambling and ripping us off, which I think troubles us in a different kind of way. On today, I don’t think anybody should view a sort of holiday or winter lull in activity as a sign of anything. As people have said, movements ebb and flow, and whenever we look back, spring is the time that things take off again. It’s really important that people not say “Oh, everything was front page news and now it’s not.” People instead should be stepping back, saying, “In three months we did more than anybody imagined we could do, now it’s time to step back and figure out the next stage.” What Next? Now comes the long slog of organizing people into focused action to take back our country from the 1%. Van Jones has been laying the groundwork, joining with MoveOn.org and other organizations to organize the Rebuild the Dream movement, and its Contract for the American Dream . Please visit and get involved. Here is Van Jones at Netroots Nation, talking about the American Dream movement: Organized labor is fighting, too, with new tactics and getting more people involved. They are focusing on labor’s role in creating a middle class in America. The recent Take Back the Capitol demonstrations are a case in point. In conjunction with many local and national organizations SEIU brought unemployed people to the D.C. to occupy the offices of 99 legislators, asking for jobs programs and extensions of unemployment benefits. They also marched on “K Street” — the symbolic center of lobbying activity. Here is AFL-CIO President Rich Trumka, Take Back the American Dream conference in October, calling for “a massive, militant movement”: Trumka told the audience that the right wing is “banking on an upside-down America for its path to political power.” Trumka said that now is the time for “a mighty movement for jobs and a just economy,” adding, “We won’t stop fighting, shoving and kicking until everyone is back at work.” Here is Steelworkers President Leo Gerard, talking about labor support for Occupy Wall street, and holding Wall Street accountable: Here is Communication Workers of America President Larry Cohen discussing the fight for the middle class on The Ed Show . See the pics in this post , showing labor’s involvement at the November 2 Occupy Oakland actions:

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Janet Tavakoli: Congresswoman Marcy Kaptur Confronts MF Global and Wall Street

December 26, 2011

In her book Third World America , Arianna Huffington urged us to break “the choke hold that special interest money has on our politics.” (P. 172) Congress allowed no-strings bailouts during the 2008 financial crisis and ongoing impunity and benefits for connected Wall Street banks. Yet there has been little accountability and no high profile indictments for widespread financial fraud. Jon Corzine: Buying the Hearts and Minds of Congress and the White House On October 31, MF Global went bankrupt under circumstances that suggest a classic situation for fraud. MF Global’s Chairman of the Board and CEO was Jon Corzine, former Goldman Sachs CEO, former U.S. senator (D., New Jersey), and former governor of New Jersey. On November 4, 2011, Corzine resigned as head of MF Global. Customer money to the tune of $600 million to $1.2 billion is still missing. JPMorgan was MF Global’s largest secured creditor. Corzine either can’t or won’t explain what happened. He offers neither a theory nor an expert opinion. (See also: ” Rehypothecation Is An Old Story: MF Global’s Story Is a Different Story of Filched Funds ,” and ” MF Global Revelations Keep Getting Worse .” ) Jon Corzine was a huge fundraiser, a “bundler” accumulating contributions from other people for campaigns for the Democratic Party. The Center for Responsive Politics reported that Corzine and his first and second wives contributed a combined $917,000 to Democratic committees and candidates over a 20-year period. Since April 2011, Corzine bundled in excess of $500,000 for President Obama’s re-election campaign. On December 24, 2011, it was announced that President Obama returned direct contributions of $70,000 from Corzine and his wife, Sharon Elghanayan. They had each given the maximum allowable amount of $30,800 to the Democratic National Committee (DNC) and $5,000 to President Obama’s campaign. Of course the DNC and President Obama can’t distance themselves fast enough from Jon Corzine now. But if this is to be more than a political stunt, they should toss back the $500,000 that Corzine raised from his friends on Wall Street. Arianna wrote that both corporate and financial interests have “captured our leaders’ hearts and minds… Obama’s senior economic advisors believe we live in a Wall Street-centric universe.” ( Third World America Pp. 151-152.) A Few Good Men and Women A few members of Congress fight for the rights of taxpayers and for the system of justice we used to expect in the United States before special interest groups bought much of Congress. Representative Marcy Kaptur is a fierce fighter for justice not only for her constituents but for all Americans. She’s not alone. The MF Global hearings revealed that a mix of Democrats and Republicans stand up for what is right, but there are members of Congress on both sides of the aisle that don’t. Representative Hayworth: “Goldman Sachs former partners… respect you greatly.” Financial firms like Goldman Sachs spread their money around and contribute to the campaigns of both Democrats and Republicans. During the hearings of the House Financial Services Committee hearing on December 15, 2011 , Representative Nan Hayworth (R., New York) treated Corzine like a royal that had misplaced his crown instead of the CEO of a bankrupt company with hundreds of millions or more of customer money missing under suspicious circumstances: “Governor Corzine, Mr. Abelow [former COO of MF Global]… I know Goldman Sachs former partners who know both of you and respect you greatly… I hope… you will employ your talents and your minds to enlightening us as to how we can prevent… this from ever happening again.” Later she referred to Corzine’s career as “rather stellar… to say the least.” If she had spoken to customers of MF Global that found money missing from their “segregated” accounts, she would have heard a different point of view. In the two previous Congressional hearings both Corzine and Abelow had stonewalled and dodged. These aren’t the guys to ask about prevention, unless Representative Hayworth wants their advice on how not to run a financial firm. Corzine was chairman, CEO, and initiator of an enormous risky trade, a net “off-balance-sheet” position of $6.3 billion in sovereign debt disclosed in MR Global’s March 2011 annual report. He was in a position to overrule any risk manager. He got rid of one risk manager critical of his trades and installed another. Corzine is the poster child for worst practices in controls and corporate governance. Representative Huizenga: “Thousands feel cheated” In the December 15 hearings , Representative Bill Huizenga (R. Michigan) pressed Corzine and got him to admit he was a detail guy “in markets and client activities.” Corzine said that in areas of his expertise he is “very hands on.” Huizenga pointed out that the commingling of customer funds is serious. People lose law licenses and real estate brokerage licenses over it. “That’s why you’re seeing such anger and hostility over this.” He challenged Corzine’s claiming that he didn’t recall details and said it “doesn’t ring true.” Huizenga continued: “This certainly doesn’t feel or look like you were caring for those other people’s money in the way that you should have or certainly were expected to.” None of Corzine’s money was at risk in these accounts. The representative summed up: “You’ve got thousands of hard working people around this country that feel cheated.” Are the Congressmen From New Jersey Going Easy on Corzine? The three Congressional hearings investigating the MF Global bankruptcy have so far had no teeth. During the Senate Agriculture Committee hearings on Tuesday, December 13, 2011 , Senator Mike Johanns (R. Nebraska) expressed his disbelief at the representations made by officers of MF Global. The officers had claimed ignorance of the circumstances of the missing money. Senator Johanns responded: “There must have been many many [sic] people who knew that money was being drained out of client accounts… do you realize how incredible [your claim of ignorance] sounds to this committee?” Yet Senator Robert Menedez (D., New Jersey) later said : “After three hearings, I don’t know what more we’ll learn that we don’t know today.” Menendez is on the Senate banking committee, which hasn’t held any hearings. This is strange, because the Senate banking committee is the only one that oversees MF Global’s regulators. The senator took the seat vacated by Jon Corzine when he became governor of New Jersey. Menendez is a good politician, since he didn’t rule out a Senate banking committee hearing if new facts come up. But it is the purpose of investigations and robust hearings to uncover the facts in the first place. When it comes to fraud, if you don’t look for it, you don’t find it, because when it comes to fraud, there is always a cover-up. Representative Kaptur on MF Global: “I believe most of us would call that theft.” Representative Marcy Kaptur is not on any of the aforementioned committees, but she has been following the hearings in both the House of Representatives and the Senate. She read her special order into the Congressional Record: “The fact that ‘customer accounts were not intact,” as [CFTC] Commissioner Sommers described it, means that someone took other people’s money. I believe most of us would call that theft. Even if some of the money is recovered by the bankruptcy process, that does not alter the fact that the process by which customer accounts were violated broke the law.” Excerpt from Representative Marcy Kaptur’s Special Order on MF Global December 14, 2011. A Rigged Financial System and Another Former Goldman Sachs CEO Representative Kaptur has experience debunking Wall Street’s spin. Bank of America’s officers withheld material information from shareholders concerning losses and bonus payments related to its takeover of Merrill Lynch during the 2008 financial crisis. Bank of America wildly overpaid for the acquisition and taxpayer bailouts were needed as the extent of losses became apparent. Bonus payments of $3.6 billion were given to Merrill Lynch executives as the firm imploded and was sold to Bank of America. Merrill lost $27 billion in 2008. “Bank of America agreed to pay a $33 million fine to the SEC but — you guess it — admit no wrongdoing. A heroic U.S. district judge, Jed Rakoff, refused to rubber-stamp the deal, which he called a breach of ‘justice and morality’ that ‘suggests a rather cynical relationship between the parties.’” Third World America P. 154 The SEC and Bank of America then cooked up a $150 million settlement. This is a classic negotiation ploy among the captured “regulators” at the SEC whose next job is often a lucrative position dependent on Wall Street for revenues. It’s called lowballing. You set the expectations so low that you can increase your initial offer by multiples and it will still be a bad-faith joke on the party with whom you settle. Judge Rakoff reluctantly accepted the new settlement of only $150 million, since he felt bound by judicial restraint. Congresswoman Marcy Kaptur (D., Ohio) took on this issue and more when she grilled then Secretary of the Treasury Henry (“Hank”) Paulson and former CEO of Goldman Sachs: “Your orchestration yielded… an unprecedented dumping of private sector losses on the U.S. taxpayer. History will show that the U.S. government and you knew about Wall Street’s growing losses long before the Bank of America / Merrill merger. In fact, Bank of America’s purchase of Countrywide in January 2008 was but another positioning of private sector interests in preparation for what I call the greatest Hail Mary pass of all time in taking those Wall Street losses and placing them on the next three generations. What interests me is who you helped and who you didn’t.” Goldman Sachs was a major beneficiary of bailouts and continued to pay its employees high bonuses. Warren Buffett got a sweetheart deal for injecting $5 billion into Goldman Sachs. Taxpayers injected $10 billion into Goldman Sachs — among other extremely lucrative ongoing benefits — and got a vastly inferior deal with timing of the unwind controlled by the borrower, Paulson’s former firm, Goldman Sachs. Janet Tavakoli is the author of an upcoming e-book: MF Global: A Classic Situation for Fraud.

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U.S. Companies Finding Opportunity In Europe’s Woes

December 26, 2011

As Europe struggles with its debt crisis, American businesses and financial firms are swooping in amid the distress, making loans and snapping up assets owned by banks there — from the mortgage on a luxury hotel in Miami Beach to the tallest office building in Dublin.

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Wikipedia Makes Bold Move Over ‘Net Censorship Bill

December 26, 2011

Wikipedia founder Jimmy Wales announced that Wikipedia and Wikia would be moving its domains off of GoDaddy, an Internet domain registrar, to protest GoDaddy’s support for the proposed Stop Online Piracy Act, a controversial anti-piracy bill under consideration by Congress. “I am proud to announce that the Wikipedia domain names will move away from GoDaddy. Their position on #sopa is unacceptable to us,” Wales wrote in a tweet . He later added , “Wikia is also moving several hundred domains from godaddy. Which registrar has quality and price right?” GoDaddy has been hemorrhaging domains in a backlash against the company’s endorsement of SOPA. Though GoDaddy said in a blog published December 20 that it was withdrawing its support for SOPA, GoDaddy CEO Warren Adelman acknowledged in an interview with TechCrunch that the company had not yet officially registered with Congress its plans to switch sides. According to VentureBeat , GoDaddy has lost more than 37,000 domains in total. Other companies that have joined in the exodus include the Cheezburger Network, which runs popular sites such as FAIL Blog, Failbook and I Can Has Cheezburger. Cheezburger Network CEO Ben Huh tweeted, “Not happy with @godaddy. Emailed CEO, asking for clear, unequivocal dropping of SOPA support. Still planning on moving off.” Commenters on Reddit have also called for a GoDaddy boycott and one Reddit user suggested December 29 should be “move your domain away from GoDaddy day.” The Next Web writes that GoDaddy has been “calling customers, begging them to stay,” noting that one customer shared an anecdote about a conversation with a GoDaddy representative in which the company’s rep attempted to clarify GoDaddy’s stance on SOPA. Wales previously contemplated protesting SOPA with a Wikipedia black out that would have seen many or all English-language Wikipedia pages taken offline. “A few months ago, the Italian Wikipedia community made a decision to blank all of Italian Wikipedia for a short period in order to protest a law which would infringe on their editorial independence. The Italian Parliament backed down immediately. As Wikipedians may or may not be aware, a much worse law going under the misleading title of ‘Stop Online Piracy Act’ is working its way through Congress on a bit of a fast track,” Wales wrote on Wikipedia . “My own view is that a community strike was very powerful and successful in Italy and could be even more powerful in this case.”

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Retailers Hoping For ‘Mega Monday’ Of Huge Sales

December 26, 2011

Retailers were bracing for a busy day on Monday, as a day off for many Americans and warm, dry weather were expected to entice shoppers looking for deep discounts. Chains were also hoping that shoppers coming in to redeem the millions of gift cards given as presents might be willing to spend a bit more cash of their own. Many chains were still relying on the lure of bargains to bring in shoppers on the day after Christmas. Office Depot Inc advertised its “Ultimate After Christmas Sale,” with stores opening at 8 a.m., while Carter’s Inc , the children’s apparel retailer, promoted discounts of up to 70 percent. It was the first time in six years that the day after Christmas fell on a Monday. Some dubbed it “Mega Monday” as the day takes on more prominence for shoppers, especially those who have the day off. This year, December 26 is expected to be the third busiest day in terms of foot traffic, trailing Black Friday, the day after Thanksgiving, and Saturday, December 17, according to ShopperTrak, which measures retail and mall foot traffic. ShopperTrak predicted that up to 60 percent more shoppers will visit stores on December 26 than on the same day last year. Early checks at major shopping areas in Chicago and New York showed that Americans may have slept in a bit later than they did the day after Thanksgiving. Retailers lured shoppers with midnight and early morning sales on Black Friday, while store hours on “Mega Monday” were more typical of a usual day. Chicago’s Michigan Avenue was not crowded at 9 a.m. local time (10 a.m. EST). The Toys R Us store in New York’s Times Square was open on Monday morning, but at about 9:20 a.m. EST was not busy by the store’s standards. Sales people predicted it would get busier later in the day, and one said that so far, people were not doing much returning. Retailers could sell as much as $29 billion worth of merchandise on Monday, according to Craig Johnson, president of Customer Growth Partners, who had predicted strong holiday sales before the season began. Sales at the $29 million level would even outpace the $27 billion in sales Johnson saw on Black Friday. Four in 10 Americans plan on hitting stores over the next few days, while 46 percent have no plans to shop, according to a poll from Consumer Reports. Of those who said they planned to shop, 82 percent said the biggest draw was post-holiday sales, 47 percent wanted to redeem gift cards, and 31 expected to return gifts. “The vast majority of Americans who will be shopping this week are predictably looking for post-holiday blowout sales,” said Tod Marks, Consumer Reports senior editor. “And those who aren’t shopping this week are predictably all shopped-out and low on money and patience.” Retailers hope that people coming in to redeem gift cards will buy merchandise at full price and spend more than the value of the cards they are using. Another Consumer Reports poll found that 113 million Americans received gift cards last holiday season, and that 62 percent of adults planned to give them as gifts this year. (Reporting by Jessica Wohl in Chicago; Additional reporting by Dena Aubin in New York and James Kelleher in Chicago; Editing by Leslie Adler) Copyright 2011 Thomson Reuters. Click for Restrictions .

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China Arrests Executives For Insider Trading As Part Of Wider Crackdown

December 26, 2011

SHANGHAI (Reuters) – China has arrested former executives at two brokerages on charges of insider trading, the securities watchdog said, as part of a crackdown on market malpractice that the new head of the agency has said will be one of his top priorities. The China Securities Regulatory Commission (CSRC) detailed on its website four cases of market manipulation and insider trading that it has investigated, including two that led to the arrests of former executives at Southwest Securities Co Ltd and Northeast Securities Co Ltd . The cases are the latest in an increasingly high-profile campaign by CSRC chief Guo Shuqing to stamp out rampant wrongdoing in the country’s stock market, which has languished despite the country’s nearly double-digit economic growth. In one case, Qin Xuan, a Northeast Securities manager who advised on the restructuring of a Shenzhen-listed pharmaceutical firm, used the information he obtained in that process to trade the company’s stock, and also leaked the information to a friend. In another case, Ji Minbo, former vice president at Southwest Securities, gained 20 million yuan ($3.2 million) by using information that was not publicly disclosed to trade more than 40 stocks from 2009 to 2011, the CSRC said. “No matter how concealed illegal practices are, inside traders will eventually be punished by law,” the CSRC said in the statement that detailed Qin’s case. The other two cases on which the agency published details involved securities consultants using commentators, research reports and media to talk up stocks they own before selling the securities to make a profit. China has been stepping up its crackdown against illegal trading activities and tightening supervision against fund managers, brokerages, consultants and executives of listed companies in a bid to build confidence in a stock market where illegal trading activities have been rampant. In August, former stock analyst Wang Jianzhong was sentenced to seven years in prison and fined 125 million yuan, on top of having illicit earnings of the same amount confiscated, becoming China’s first convicted stock market manipulator. Guo, the former China Construction Bank chairman who became CSRC chief in late October, said in a speech in early December that the regulator would adamantly crack down on accounting fraud, insider trading and other illegal activities. Earlier this month, the agency exposed the country’s biggest-ever case of stock market manipulation that involved an investment company, Guangdong Zhonghengxin, orchestrating “pump-and-dump” schemes related to 552 stocks, out of which it made 426 million yuan. The CSRC has also recently published rules that would require listed companies to keep records on anyone who may have access to price-sensitive information. ($1 = 6.3364 Chinese yuan) (Reporting by Samuel Shen and Jason Subler; Editing by Kazunori Takada) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Woman Arrested After Punching Walmart Employee In The Face

December 26, 2011

People: we know holiday sales are great, but they’re not worth spending the night in jail. A New York woman was charged with two counts of second-degree assault after punching a 70-year old Walmart employee in the face. Jacquetta Simmons, 26, assaulted Grace Suozzi on Saturday night after the Walmart greeter asked to see her receipts, according to authorities. Simmons quickly fled the scene, but employees and customers chased her until she was surrounded. Not long after, police arrived and arrested her. Police reported that when they checked Simmons’ bags, she had receipts for all of the merchandise. WATCH:

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Analysis: ‘We’re Not Going To See China Buying Europe’

December 26, 2011

VENICE (Reuters) – The sign in a boutique selling glass hand-crafted on the Venetian island of Murano betrays an uncertain grasp of English. But the owner is very sure who is to blame for the tough times confronting the 700-year-old local glassmaking industry. “Everything in this shop is not made in China,” it proclaims. A few doors away, imported Murano lookalikes sell for much less. To the untrained eye, they appear identical. With Europe drowning in debt and flirting with recession, China’s influence can only rise further. Euro zone governments would love Beijing to plough more of its $3.2 trillion in foreign-exchange reserves into their bonds. China is also likely to chip in with a loan to the International Monetary Fund to provide a financing backstop in case Italy and Spain are shut out of the bond markets. Last week’s $3.5 billion acquisition by China Three Gorges Corp of the Portuguese government’s stake in utility EDP is also a sign of things to come. Financiers turn instinctively to fast-growing China as they try to flush out buyers for assets that are going on the block as European governments, banks and companies pay down debt. But, despite Chinese leaders’ expressing interest in diversifying the country’s overseas asset base away from government paper, analysts do not expect a sea change in China’s traditionally cautious approach to expanding in Western markets. Africa and Asia are likely to remain China’s top targets for now. “There are going to be opportunities, but we’re not going to see China buying up Europe,” said Thilo Hanemann, research director at the Rhodium Group, an investment advisory and strategic planning firm in New York. TREADING SOFTLY There are many reasons for the wariness. Lengthy delays in obtaining the approval of regulators in Beijing put Chinese companies at a disadvantage in mergers and acquisitions when the seller wants a quick deal. Companies lack the management skills to integrate overseas acquisitions. And, perhaps most importantly, prospects are much brighter at home than they are in Europe. “If you compare the rates of growth in China and in Europe, are you sensible buying into a brand that’s seen its best years of growth? said Edward Radcliffe, a partner in Shanghai with Vermillion, an M&A advisory boutique that focuses on cross-border China deals. Still, he said some larger Chinese groups, both state-owned and private, had started to explore opportunities in Europe and the United States. The 27-member European Union is China’s biggest export market. But foreign direct investment (FDI) has badly lagged, totaling $8 billion by the EU’s reckoning or $12 billion on China’s count – less than 0.2 percent of total FDI in the EU, according to Rhodium. The firm has kept its own tally since 2003, but its total of $15 billion through mid-2011, though greater than the official data, is still small. Hanemann said he was sure 2012 would see deals in Europe in technology and consumer products to enable Chinese firms to climb the value ladder and build their domestic market share. “Ultimately, Chinese companies have to become true multinationals, like Japanese and Korean firms before them,” he said. “Over the longer term, there’s no reason to believe that China is going to take a different path.” But he was skeptical whether most Chinese companies would be able to seize the opportunities that were likely to crop up in the coming year. To do so, they would have to manage public perceptions in Europe and obtain quick regulatory approval at home. “There are a lot of deals that the Chinese cannot take on. If the Chinese government sees a company making a bid for troubled assets that risks provoking a political backlash in Europe, I think they’d step in to make sure there’s no embarrassment for the Chinese side.” POLITICAL OVERLAY The failure of Chinese firms to buy Saab, the Swedish car maker that was declared bankrupt last week, was a telling example of the difficulties facing Chinese investors, Hanemann said. But the picture is not black and white. After all, Volvo, another Swedish car maker, was successfully acquired by a Chinese rival from Ford Motor Co in 2010. Christine Lambert-Goue, managing director in Beijing at Invest Securities China, said companies were not looking mainly for outright acquisitions but for brands, patents and technology that would bolster their position at home. “Companies are only ready to pay for assets from Europe that will enable them to gain market share in China,” she said. Investment in Europe will take off eventually, but a deteriorating political climate represents an obstacle in the short term, said Jonathan Holslag of the Brussels Institute of Contemporary China Studies. The EU, like the United States, is talking tough about Chinese “state capitalism” and is crafting a more assertive trade policy to counter what it sees as a playing field tilted against foreign companies. For its part, Beijing smells protectionism in the air in response to its growing economic clout. “The European Union is disappointed with the reluctance of Beijing to open its economy further, whereas Beijing complains about Europe being too reluctant to share its knowledge or to allow Chinese investors to expand their presence in important sectors like infrastructure,” Holslag said. And if Europe fails to snap out of its economic malaise, the risk is that a super-competitive China will be made a scapegoat. “The more governments are confronted with high unemployment figures, the more we will start to see China as a challenger rather than as a savior,” Holslag said. Copyright 2011 Thomson Reuters. Click for Restrictions .

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Rival Camera Company: Too Early To Say If It Will Invest In Olympus

December 26, 2011

TOKYO (Reuters) – Japan’s Fujifilm Holdings is watching developments at scandal-ridden Olympus Corp but it is too early to say if it will invest in the rival endoscope maker, a senior executive told Reuters in an interview on Monday. Fujifilm, a film and camera maker that has been diversifying into medical equipment and pharmaceuticals, as well as Sony Corp and Panasonic Corp were named by a newspaper last week as potential investors in Olympus. The report said Olympus was seeking to replenish its capital base by issuing $1.3 billion in preferred shares. “It’s a great business, that’s for sure,” said Kouichi Tamai, the head of Fujifilm’s medical systems unit, when asked about Olympus’s profitable endoscope division. Olympus commands 70 percent of the flexible endoscope market while the rest is held by Fujifilm and Hoya Corp. But he added: “Until we know what will happen to Olympus as a company, it would all be theoretical, so we don’t know.” Although Olympus, which has admitted to concealing investment losses with questionable M&A deals, just managed to beat a December 14 earnings report deadline and avoid an automatic delisting, it could still be delisted if the Tokyo bourse deems its past false accounting to be sufficiently serious. Tamai also said he had several acquisition targets in mind in the healthcare field, where Fujifilm has snapped up a series of firms in recent years and where it is targeting sales of 370 billion yen in fiscal 2013/2014, a 38 percent climb from the past year ended in March. It is buying out U.S.-based SonoSite Inc for $995 million including debt, a deal which it hopes will make it the world’s largest maker of portable ultrasound equipment in three years. Tamai also said he was not yet sure whether hospitals would switch away from Olympus’ endoscopes following the accounting scandal and how much Fujifilm would benefit if they did. Shares in Fujifilm, which also competes with Olympus in cameras, were up 1.6 percent in early afternoon trade, roughly in line with the Nikkei average. ($1 = 78.1000 Japanese yen) (Reporting by Isabel Reynolds; Editing by Edwina Gibbs) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Spanish Economy Minister: Spain To Fall Back Into Recession In 2012

December 26, 2011

MADRID — Spain will slide back into recession early next year with the current quarter and the first of 2012 both registering negative growth, new Economy Minister Luis de Guindos said Monday. De Guindos said he expects the economy – the eurozone’s fourth largest – to contract by between 0.2 percent and 0.3 percent on the previous quarter in the final three months of this year and again in the first quarter of next year. He said the outlook for next year was poor. If the Spanish economy were to contract by between 0.2 percent and 0.3 percent for an entire year, it would shrink roughly 1 percent. “Let nobody be fooled, the next two quarters are not going to be easy either in terms of growth or employment,” de Guindos said. Spain began to emerge from a near two-year recession last year. It had two successive quarters of growth in 2011 before posting zero growth in the third period. De Guindos took office last week as part of the new conservative Popular Party government. He said then he was confident the country would emerge from its severe economic crisis and return to prosperity and its former status as a job creator. Spain has the highest unemployment rate of the 17 countries that use the euro, with 21.5 percent joblessness, and is running a swollen budget deficit following the recession that started with the collapse of a real estate bubble. The Popular Party won a landslide victory in Nov. 20 elections on a promise to get the economy moving again. Prime Minister Mariano Rajoy has pledged austerity cuts totaling euro16.5 billion ($21.6 billion) and promised labor reforms. His government is to begin approving urgent measures Friday, including a freeze on filling new civil service vacancies. except in key areas such as the security forces. Spain has already made sharp cuts to its national spending and introduced several reforms under the former Socialist government, but the economy has failed to respond.

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Japanese Officials: Europe Should Boost Its Rescue Fund

December 26, 2011

TOKYO (Reuters) – Europe should boost the total firepower of its rescue fund and frontload its funding to send a positive signal to investors and international partners that it is determined to solve its debt crisis, Japanese officials said on Monday. Japan has repeatedly expressed its willingness to help Europe contain its debt crisis, but has also stressed it wanted to see a convincing action plan before making any firm commitments. “Japan like other non-euro countries is prepared to do something, but unless European countries take decisive action it is hard to make those steps effective,” a senior Japanese government official said. Lifting the combined size of the current bailout fund (EFSF) and the new permanent European Stability Mechanism (ESM) beyond the current 500 billion euros would be a major step and an encouraging signal. “We expect European countries will review the combined ceiling of 500 billion euro of EFSF (European Financial Stability Fund) and ESM in a very positive manner,” the official told Reuters. European leaders agreed in Brussels earlier this month to accelerate the launch of the ESM by a year to mid-2012 with an effective lending capacity of 500 billion euros ($650 billion), but questions have arisen about the size and timing of contributions. Japanese officials said that while bringing forward the launch of the fund was positive, a more ambitious ceiling might be needed given that Europe had little success in bringing in outside investors to boost the firepower of the EFSF fund. “The leveraging of EFSF money by investors’ money doesn’t look like materializing very well. That’s why they are frontloading the ESM and the review of the ceiling of 500 billion euro is very important,” said the official, who declined to be named. “European countries may think what they’ve already decided is a major step forward, but markets want Europe to act more decisively.” German Finance Minister Wolfgang Schaeuble signaled over the weekend that Europe’s biggest economy and its main paymaster could boost its contribution to the fund and support its swift launch, although any decisions would have to be made in January. Since the beginning of the crisis more than two years ago, European leaders have orchestrated bailouts of Greece, Ireland and Portugal, set up a euro zone rescue fund and earlier this month agreed to boost the International Monetary Fund’s resources by 150 billion euros. Still, throughout the crisis that has also shaken Italy and Spain, investors have repeatedly been left with the impression that whatever was agreed in Brussels was too little, too late. Japan, the United States, Canada and others have voiced their frustration with Europe’s piecemeal progress and repeatedly called for bold steps that would create effective “firewalls” around the euro zone’s weaker, heavily indebted economies. Another Japanese government official reiterated on Monday that Tokyo, which led an international effort to boost the IMF’s coffers after the Lehman crisis, was open to contributing more but that its decision depended on Europe’s actions. Officials in Tokyo said markets needed to see both effective defenses in the form of funds sufficient enough to cover the crisis-hit nations’ financing needs and commitments to fiscal discipline. “Fiscal discipline is very important. Even if we provide firewalls we need fiscal discipline,” the official said. While Tokyo has repeatedly voiced concern about developments in Europe, its plans to buy Chinese government debt did not reflect lack of confidence in the euro or U.S. dollar assets, another official said. He said the plans, discussed during Prime Minister Yoshihiko Noda’s visit to Beijing, aimed at strengthening economic ties between the two nations rather than diversifying Japan’s exchange reserves, mostly made up of dollar and euro assets. “The idea is not to depart from the dollar or U.S. government bonds or the euro, so it should not be interpreted as diversification of our portfolio,” the official said. “I don’t have any doubts about creditworthiness of the dollar or U.S. government bonds. The dollar will remain the most important currency for the foreseeable future.” Copyright 2011 Thomson Reuters. Click for Restrictions .

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Connie Dieken: The Top Influencers Alive: 10 Breakout Influencers of 2011

December 26, 2011

2011 separated the influencers from the persuaders. One by one, once-admired leaders from the athletic office to the corner suite to Wall Street toppled like dominoes. Turns out they lacked influence. Why? Because they misjudged what influence really means. My list of the “Top Influencers Alive” may surprise you. That’s my point. Despite conventional wisdom, influence and persuasion are not the same animal. After decades of advising top leaders, I’ve concluded that persuasion is a self-centered skill — it’s manipulation fueled by a personal agenda run amok. Influence is a balanced approach to changing hearts, minds and results. There are three dimensions of a true influencer. How do you measure up? Inner confidence (Influence begins within. You live your values with a defined sense of purpose. You’re courageous and driven by positive resolve, not fear.) Outer presence (Your presence is how you make others feel. People are drawn to you because they sense you have credibility, integrity, likeability and live with congruence.) Compelling communication (You deliver messages that connect with others’ values, convey with portion control to gain clarity, and convince others to commit to action.) Based upon these three dimensions of true influence, here are my picks of the year’s top influencers: Tim Tebow, Denver Broncos Quarterback. Tebow’s “flawed mechanics” and wobbly spiral are frequently criticized, but his authentic leadership is not. Tebow-mania has spiked the NFL’s ratings and elevated those around him, stirring his team from the cellar to playoff contention. His unwavering faith and never-say-never resolve have captivated the nation, even spurring new terms such as “Tebowing,” “Tebow-Time,” and “The Mile High Messiah.” Sure, religion polarizes. But Tebow demonstrates that integrity, confidence and humility are an influential combination. Howard Schultz, Founder and CEO, Starbucks. Like the late Steve Jobs, Schultz returned to rescue the company he founded. The brand he built is once again soaring with record financial results. But Schultz morphed from business leader to social activist when he took a stand on Washington D.C.’s dysfunction. He influenced more than a 140 fellow chief executives to join him in a boycott on campaign contributions to incumbents, saying, “Business leaders cannot be bystanders.” He rouses the troops with his affability and passion for job creation and the economy. Gabrielle Giffords, Arizona Congresswoman. As a politician, Giffords has long fought for her constituents. But it’s her personal fight after a bullet pierced her brain that has influenced the nation. Gifford’s sheer determination and upbeat attitude inspire millions. Due to damage in her language pathways, her vocabulary is limited and she struggles to form sentences, but she makes it crystal clear that she’s committed to rebuilding the connections in her brain and her community. Giffords’ story connects with everyone – inner resolve trumps evil acts. Hamdi Ulakaya, Founder and CEO, Chobani Yogurt. In just a few short years, Ulakaya’s Greek-style yogurt company vaulted from nowhere to everywhere to become the third largest yogurt maker in the market. This modern day dairy king came to the U.S from a Turkish sheep and cow farming family to attend business school, but didn’t finish. Instead, he bought a yogurt plant a competitor was closing and launched Chobani, which means “shepherd.” He’s committed to listening to customers and staying true to the vision to provide nutritious products at fair prices. Jeff Bezos, Founder and CEO, Amazon. Bezos’ company is on fire with his new product, Kindle Fire. The man with the distinctive laugh took the company from Seattle’s skid row to a gleaming headquarters on Puget Sound where, despite the company’s enormous size, working teams stay small. Bezos masterminded the idea of the “two pizza team.” He has said if you can’t feed a team with two pizzas, it’s too big to do amazing work. Part of Amazon’s influence lies in creating consumer demand for additional product sales with personalized recommendations. Jim Skinner, Vice Chairman and CEO, McDonald’s. McDonald’s has been on a tear since Skinner took over in 2004. Stock appreciation is soaring, same-store sales are rising and the company continues to create jobs in a down economy. It added 62,000 new jobs in its McJob fair earlier this year. Skinner also spearheaded healthier menu choices, including customers the world over who are “lovin’ it.” Smoothies, wraps, parfaits and salads are a hit, let alone the new McCafe coffees, which are giving Starbucks a run for the money. Oprah Winfrey, Media Mogul. Winfrey made a daring move this year, ending her long running syndicated talk show and launching her OWN cable network. She created a strong bond of trust with her followers by modeling authenticity and openness, without the trap of over-merchandizing herself. Unlike Martha Stewart, Winfrey has kept control of her image. While the new network is struggling in the ratings, she’s launched many successful careers and shows leadership by juggling television, radio, a leadership academy for girls, a magazine and philanthropy. Liz Strauss, Founder of Successful Blog and CEO, SOBCon. Strauss is a social web strategist and one of the most thoughtful, prolific bloggers on the planet. Her blog posts on leadership and life garner tens of thousands of comments. A teacher and community builder at heart, Strauss is all about interconnectedness, bringing great people and great ideas together. The blogosphere is her classroom, athough she hosts an annual high touch summit where as she says, “the virtual meets concrete” bringing top bloggers together to share their influence. Warren Buffett, CEO Berkshire Hathaway. The legendary investor from Omaha created a buzz this year by arguing that the rich should pay higher taxes. He wants those who make more than a million dollars a year to pay the same percentage of their income as others in the middle class. Washington latched on, deeming his idea the “Buffett Rule.” As an investor, Buffett moved back into technology, buying more than ten billion in shares of IBM. Others followed suit. Simply put, when Buffet talks, others take action. John Mackey, Founder and Co-CEO, Whole Foods Market. Mackey launched his first grocery in 1980 and has since grown it into the country’s top natural and organic food vendor. Profits are up more than forty percent this year. He’s a visionary and outspoken leader, unafraid of taking on subjects he’s passionate about such as healthcare. Mackey believes in conscious leadership, and is keenly aware that being the most visible person in an organization is a responsibility. As a result, he has created a high trust organization. Those are my picks. How about yours?

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Chinese Currency Reaches All-Time High

December 26, 2011

SHANGHAI (Reuters) – The yuan closed up against the dollar on Monday after hitting an all-time high in intraday trading, guided by a stronger mid-point by the People’s Bank of China, and looks set for an over-4-percent appreciation for 2011, traders said. The yuan is expected to remain stable or rise slightly in the last week of the year to close 2011 near 6.30 versus the dollar, in line with market expectations. The currency is likely to continue to appreciate next year as China continues to post big trade surpluses despite a slowdown in exports and amid pressure from the United States to let the yuan rise to balance bilateral trade, traders said. But the yuan’s appreciation is likely to slow to around 3 percent in 2012, with much of the rise seen in the second half of next year as China may keep the yuan relatively stable in the first half to assess the impact of the euro zone crisis, they said. “The PBOC has recently set a slew of strong mid-points and pumped dollars into the market via state banks, giving the market a clear signal that the government won’t let the yuan depreciate,” said a trader at a major Chinese bank in Shanghai. “But the central bank appears not in a hurry to let the yuan appreciate amid global economic uncertainties resulting from the euro zone debt crisis. So the yuan is likely to move largely sideways in coming months.” Spot yuan closed at 6.3198 against the dollar, up from Friday’s close of 6.3364, after hitting an all-time high of 6.3160. Its previous peak was 6.3294 hit on December 16. The PBOC set the dollar/yuan mid-point at 6.3167 on Monday, stronger than Friday’s 6.3209 and near the record-high fixing of 6.3165 on November 4. FIGHTING SPECULATORS The yuan has appreciated 4.27 percent so far this year, with most of the gain being recorded in the first 10 months of the year as China tries to rebalance trade and use the currency to help fight high inflation. While the government has recently halted yuan appreciation amid slowing exports, it also seems to be wary of a weaker yuan that may lead to capital outflows. Some overseas investors appear to have been shorting the yuan in recent months amid signs that China’s growth is slowing under the double weight of a global slowdown and the country’s monetary tightening policy in place since October last year. The PBOC, in addition to using strong mid-points to signal government intentions to keep the yuan stable, has also acted to inject dollars into the market via state-owned banks whenever there are signs that the yuan is set to weaken sharply. The yuan has thus been effectively kept in a range of 6.3 to 6.4 against the dollar since early November — a trend traders say they believe to continue well into 2012. In contrast, offshore benchmark one-year non-deliverable forwards (NDFs) have largely been forecasting a yuan depreciation in a year’s time since late September, reversing a general trend of predicting an appreciation since the yuan’s revaluation in July 2005. One-year NDFs fell slightly to 6.3790 on Monday against 6.3810 at the close on Friday, implying that the yuan will depreciate 0.97 percent in 12 months from Modnay’s PBOC mid-point, compared with a 1.01 percent fall implied on Friday. Copyright 2011 Thomson Reuters. Click for Restrictions .

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Wendell Potter: When Medicare Isn’t Medicare

December 26, 2011

Let’s say you have a Ford and decide to replace everything under the hood with Hyundai parts, including the engine and transmission. Could you still honestly market your car as a Ford? That question gets at the heart of the controversy over who is being more forthright about GOP Rep. Paul Ryan’s plan to “save” Medicare, Republicans or Democrats. If you overhaul the Medicare system like you did your Ford and tell the public it’s still Medicare, are you doing so honestly? As I noted last week, PolitiFact, the St. Petersburg Time ‘s fact checker, decided that the Democrats’ claim that Ryan’s plan would mean the end of Medicare was so blatantly untrue it merited designation as the 2011 “Lie of the Year.” Republicans, whose erroneous claims about health care reform garnered “Lie of the Year” prizes in 2009 and 2010, cheered. Democrats, as you might imagine, jeered — as did some journalists and pundits. PolitiFact’s Washington-based editor defended the choice by contending that Ryan’s proposal to restructure Medicare by providing beneficiaries subsidies to buy private insurance would not “end” the program. It would still be Medicare, he reasoned. What he’s missing is that Ryan’s proposal would change the program so fundamentally as to represent the equivalent of replacing the engine and transmission. Ryan’s plan would be a continuation of what Yale professor Jacob Hacker wrote about in his 2006 book, The Great Risk Shift . As Hacker pointed out, big corporations, aided and abetted by their political allies, have been methodically shifting more and more of the risk of providing benefits from them to us. Ryan’s plan would accelerate the trend and take it a major step further by gradually shifting much of the financial obligation of paying for benefits from the government to Medicare beneficiaries. Under Ryan’s blueprint, the government would be doing just what big corporations have been doing for several years now: off-loading risk. The corporate world started doing this when big banks and multi-line insurance companies with financial services divisions persuaded them to phase out their pension plans and replace them with 401(k)s, so-called because of the section of the federal law that authorized their creation. In the early part of my father’s career, 401(k)s had not yet been invented. Soon after he was hired as a shift worker at a Tennessee glass factory, he was enrolled in his employer’s pension plan. When he retired more than 25 years later, he began receiving a predetermined pension benefit every month until he died last December. The payments weren’t nearly as big as the paycheck he received while on the job, but it was an enormous help financially. By contrast, when I went to work for CIGNA in 1993, pensions were an endangered species. CIGNA still offered one, but the company changed the structure soon after I was hired, which meant that I would get less each month upon retirement than colleagues who had joined the company a few years earlier. CIGNA was among the first companies to offer a 401(k) plan because, at the time, it was one of those multi-line insurance companies that had a financial services division. That division created and managed 401(k)s for several large employer customers, CIGNA itself being one of them. Aetna also had a financial services division back then. So two of the biggest health insurance firms in the country, Aetna and CIGNA, played key roles in the early years of the great risk shift by ushering in the era of 401(k)s and bringing the pension era to an end. Employers began phasing out pensions in the 1990s as rapidly as they began jettisoning indemnity health insurance plans in favor of HMOs and other managed care plans (which, of course, Aetna and CIGNA also marketed, and still do). Transitioning from pensions to 401(k)s meant that employers would have much more money available to reward shareholders because they would be paying less in revenues over time to retired employees. The winners consequently have been the wealthy individuals and institutions who own today’s corporations, while the losers have been the ones who work for them. Instead of being “defined” benefits plans like pensions, 401(k)s are referred to as defined “contribution” plans. That means that workers enrolled in such plans no longer get a certain amount of money every month when they retire as my father did, but instead will get whatever is in their 401(k) balances, most of which they contributed themselves. Highly compensated employees, including CEOs, are pleased with the shift because they have the means to sock away more money in their 401(k)s than the rank and file. And the money they sock away is tax-deferred, so 401(k)s have become a favorite tax shelter for the well-to-do. Ryan’s Medicare scheme would replicate what 401(k)s have done to the rank and file. The vouchers the government would provide beneficiaries are the equivalent of a defined contribution. And the vouchers invariably would become less valuable over time as the cost of insurance increased. The wealthy among us wouldn’t be nearly as disadvantaged when that occurred as low- and middle-income earners who would have to dig deeper into their own pockets to buy health care coverage from private insurers. And undoubtedly, they would find that the only plans they could afford would be those with high deductibles. If backers of Ryan’s plan would drop the word “Medicare” and name it something with a bunch of numbers and a letter or two in parenthesis, that would be far more honest than calling it Medicare or anything similar. At least the proponents of the great risk shift didn’t have the audacity to call 401(k)s pensions. They’re entirely different creations with engines and transmissions that bear little resemblance to each other. That ain’t no lie, PolitFact.

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China will set a growth target of 11% for industrial output in 2012

December 26, 2011

China is about setting growth target in 2012 that will reach 11% of for industrial output, which is the same goal as 2011, as Improving the growth rates for small and medium-sized enterprises is one …

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Iran invests USD700m in South Pars phases 15, 16

December 26, 2011

(MENAFN) South Pars’ manager of developing the gas field’s phases 15 and 16, Abbas Haj Hosseini, said that until now, the government invested around USD700 million in the two phases, reported Tehran …

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Year-End Tax Moves: 5 Things You Need To Know

December 26, 2011

‘Tis the season for procrastination, and Congress isn’t the only player waiting until the 11th hour when it comes to taxes. Some small-business owners are scrambling in this last week of the year to try to reduce their tax burden. “Even though Congress failed to extend for 2012 various income tax provisions that expire at the end of 2011, it’s still possible to do year-end tax planning now,” says author, attorney and small-business advocate Barbara Weltman . Reporting income when you receive it and deducting expenses when you pay them gives you more control over your taxes. Ready to make some very last-minute tax moves that may save you money in 2012? According to Weltman, here are five things you need to know. 1. Don’t bill yet for work you’re doing now. Typically you’d send an invoice as quickly as possible, but Weltman suggests at this point, for tax purposes, you “consider waiting until the end of the year to send it. This will ensure payment is received in 2012, and taxes on the income are deferred for another year.” One caveat, according to Weltman, is if you expect to be subject to the alternative minimum tax (AMT) in 2011. If so, the opposite approach may make more sense — bill immediately to receive the income in 2011, so “your income will be taxed at no more than 28 percent under the AMT vs. a regular tax rate of up to 35 percent,” Weltman says. Another factor to keep in mind: If you have any concerns about getting paid, it’s not worth it to delay invoicing just for the tax benefits. “The sooner you start collections,” Weltman says, “the more likely you’ll receive all that you’re owed.” 2. Buy office supplies before the end of the year. Assuming you have the space to store it, try to stock up on the paper, toner or other office supplies you project to use throughout 2012. “Order them now so that the cost is deductible in 2011,” Weltman says. Weltman says an exception to this deduction is prepaid expenses for something that extends beyond the end of next year. For example, if you prepay a three-year subscription to a trade journal or renew a three-year membership to a trade association, that cost is deductible over three years, not just in 2011. 3. Invest in a qualified retirement plan. “If 2011 is expected to be profitable and you don’t yet have a qualified retirement plan, sign the paperwork to establish one for your business before the end of the year,” Weltman says. “You’ll then have until the extended due date of your return to fund the plan.” Weltman suggests you talk to a brokerage firm, mutual fund or other financial institution about what you need to do to adopt the plan for 2011. Find more information about qualified retirement plans in IRS Publication 560 (while it has not yet been updated for contribution and benefit limits in 2011, the general rules continue to apply). 4. Splurge on equipment. Want an iPad? Need more office computers? Tempted by the after Christmas sales? According to Weltman, if you buy the equipment and start to use it in your business before the end of the year, you can claim a full-write off. The write-off is available whether you finance the purchase in whole or in part. Here’s what Weltman says you need to do to get this deduction: Use the Section 179 (“expensing”) deduction for pre-owned property. This write-off is allowed only if you are profitable. The dollar limit on purchases for 2011 is $500,000. Use 100 percent bonus depreciation for new property, whether or not you are profitable. The write-off of the entire cost of eligible property can create or increase a net operating loss, which can mean a refund of some or all of the taxes paid in the prior two years. 5. Settle up your accounts payable. “You may have bills piled up that are not due until 2012 — if you pay them now, you can deduct the expenses in 2011,” says Weltman. If you don’t have the funds in your bank account at the moment, Weltman says you should consider putting the expenses on your business credit card if the vendor or other party allows it. Costs charged to a major credit card before the end of the year are deductible this year even though the credit card bill isn’t due until 2012. Though you may be tight on time, Weltman says you shouldn’t skip one more important step: “Contact your CPA or other tax advisor immediately to discuss whether these or other last-minute actions make sense for your tax situation,” she says.

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Thai govt to seek cabinet’s approval for USD11b budget plan

December 26, 2011

(MENAFN) The Thai government said that it would ask the cabinet to approve a USD11.12 billion budget to set up an infrastructure and water management plan in order to avoid a repeated flood crisis, …

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US’ 2011 net liabilities at USD14.8tr

December 26, 2011

(MENAFN) US Treasury Secretary, Timothy Geithner, said that in 2011, the government’s net liabilities reached USD14.78 trillion, from USD13.47 trillion in 2010, reported Arab News. Geithner added …

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Central Bank survey cuts Brazil inflation to 5.33%

December 26, 2011

(MENAFN) A report, issued by Brazil’s central bank, expected consumer prices to rise 5.33 percent in 2012, less than the 5.39 percent forecast a week earlier, Bloomberg reported. The report, …

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Iran likely to export gasoline next year

December 26, 2011

(MENAFN) Iran’s oil minister, Rostam Qasemi, said that following the reduction in local gasoline consumption after implementing the Subsidy Reform Plan in December 2010, next year, Iran might start …

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Turkey, Azerbaijan agree on a gas pipeline

December 26, 2011

(MENAFN) Turkey and Azerbaijan agreed to set up a consortium to build a pipeline to ship natural gas from Shah Deniz field to Europe via Anatolia, Bloomberg reported. The consortium consists of …

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China, Japan to promote direct trade away from US dollar

December 26, 2011

(MENAFN) Japan and China agreed to back direct trading of the Yen and Yuan away from using dollars, in addition to support the development of a market for companies involved in the exchanges, …

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Samsung, Sony To Dissolve Massive Partnership

December 26, 2011

By Reiji Murai and Hyunjoo Jin TOKYO/SEOUL (Reuters) – Sony Corp has agreed to sell its nearly 50 percent stake in an LCD joint venture with Samsung Electronics to the South Korean company for $940 million, as it struggles to reduce huge losses at its TV business. The seven-year-old venture cut its capital by 15 percent in July and industry sources had said Sony was negotiating an exit, aiming to switch to cheaper outsourcing for flat screens for its TVs while Samsung pushes ahead with next-generation displays. “In terms of direction it is a positive (for Sony),” said Keita Wakabayashi, an analyst at Mito Securities in Tokyo, about the deal. “But if they are making a loss on the sale, one could ask why they didn’t make this decision sooner.” “Their biggest problem is that they are not making a profit even though they don’t have many plants,” he said. In November, Sony, the world’s third largest flat panel TV maker, warned of a fourth straight year of net losses for the financial year to next March, with its TV unit alone set to lose $2.2 billion on tumbling demand and a surging yen. The company said on Monday it would review its earnings forecast to reflect 66 billion yen in impairment losses from the transaction, as well as expected future cost savings. While the sale is seen as a move in the right direction for Sony, it will not be good for Samsung, analysts said. “Sony may shift to Taiwanese LCD makers should they offer cheaper prices,” Song Myung-sup, an analyst at HI Investment & Securities, said in Seoul. Shares in Sony ended 1.6 percent higher, compared with a 1 percent gain in Tokyo’s benchmark Nikkei average, while Samsung Electronics shares fell 0.2 percent. Sony’s panel venture with Samsung, S-LCD, was established to secure stable supplies for Sony’s flat-screen TVs at a time of shortages. AILING BUSINESS Once a symbol of Japan’s high-tech might, Sony has sold off TV factories in Spain, Slovakia and Mexico in the past few years and outsources more than half of its production to companies including Hon Hai Precision Industry, the contract electronics maker that also counts iPhone maker Apple Inc as a key customer. Sony retains four TV plants of its own — in Japan, Brazil, China and Malaysia. Some analysts say the $100 billion LCD TV market peaked last year and forecast it will shrink 3 to 4 percent annually, as consumers in advanced countries have already traded in their bulky cathode-ray tube TV sets for flat screens, while the LCD market has been in a glut since last summer. Global TV manufacturers are restructuring their businesses and outsourcing production as cut-throat competition and weak demand squeeze margins. Analysts have criticized Sony for failing to aggressively take on the competition in the TV market from South Korean rivals Samsung and LG Electronics Inc, the largest and second-largest players, respectively. In November, Sony cut its TV unit sales forecast for the second time this year and dropped a plan to boost its TV sales to 40 million sets a year in the fiscal year ending March 2013, effectively conceding defeat to Samsung, the world’s largest flat-panel TV maker. Samsung has said it expects the flat-panel TV market to grow 10 percent next year, and aims to outperform the market. Sony said in April it would not raise its stake in a separate LCD venture with Sharp Corp for at least a year, and in August said it would merge its loss-making small-panel business with the government-backed Japan Display. In October, it signaled a stepped-up push into the smartphone market by announcing it would take control of its mobile phone joint venture with Ericsson for $1.5 billion. The company is hoping to exploit its music and video content and compatibility with its other devices like TVs and tablet computers to help it catch up with smartphone leaders such as Apple. ($1 = 1,155 won; 77.99 yen) (Additional reporting by Isabel Reynolds; Editing by Michael Watson and Editing by Vinu Pilakkott)

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Toyota to start selling Aqua compact in Japan

December 26, 2011

(MENAFN) Toyota Motor Corp. said that the company would start selling Aqua compact, the firm’s smallest hybrid car in Japan, in order to attract younger clients, reported Bloomberg. Asia’s …

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Samsung to pay USD935m for Sony’s stake in LCD JV

December 26, 2011

(MENAFN) Samsung Electronics Co. said that the company would pay USD935 million in cash to acquire Sony Corp’s entire stake in their joint venture S-LCD Corp., reported Bloomberg. The world’s …

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Looking for Major Bounce in EUR/SEK Over Coming Days

December 26, 2011

Eur/SekThe market remains very well supported and we look for another bounce out from the range lows and fresh upside extension back towards key multi-week resistance by 9.35 over the coming days. …

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US Dollar Index Classical Technical Report 12.26

December 26, 2011

US DOLLAR INDEX: The market is expected to remain very well supported on dips after showing some clear signs of a material base in the previous month. Key previous multi-week range resistance …

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GBP/JPY Classical Technical Report 12.26

December 26, 2011

GBP/JPY: This market could be in the process of establishing a major base following the September break to record lows. However, the latest round of setbacks will need to hold above 119.00 (key …

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EUR/JPY Classical Technical Report 12.26

December 26, 2011

EUR/JPY:The latest break back below the daily Ichimoku cloud delays any hopes for a meaningful recovery on the cross and opens the door for a more significant decline back down towards critical …

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USD/CAD Classical Technical Report 12.26

December 26, 2011

USD/CAD: Our constructive outlook remains intact with the market focused on a retest of the key October highs by 1.0660. From here, look for any interday pullbacks to be very well supported above …

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NZD/USD Classical Technical Report 12.26

December 26, 2011

NZD/USD: Any rallies are classified as corrective and we continue to see this market in the process of carving out a major longer-term top. From here, we look for the formation of the next lower …

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AUD/USD Classical Technical Report 12.26

December 26, 2011

AUD/USD: Any rallies are classified as corrective and we continue to see this market in the process of carving out a major top ahead of the next downside extension back below the critical lows …

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USD/CHF Classical Technical Report 12.26

December 26, 2011

USD/CHF: The recent break above the critical October highs at 0.9315 is significant and now opens the door for the next major upside extension over the coming weeks back towards parity. A …

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GBP/USD Classical Technical Report 12.26

December 26, 2011

GBP/USD:Rallies have been very well capped ahead of 1.5800 and it looks as though a lower top has now been carved out by 1.5780 ahead of the next major downside extension back towards the October …

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USD/JPY Classical Technical Report 12.26

December 26, 2011

USD/JPY:The market has managed to successfully hold above the bottom of the daily Ichimoku cloud to further strengthen our constructive outlook and we look for the formation of a inter-day higher …

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EUR/USD Classical Technical Report 12.26

December 26, 2011

EUR/USD: The market has finally taken out the key October lows at 1.3145 to confirm a lower top by 1.3550 and open the next downside extension towards the 2011 lows from January at 1.2870. Daily …

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Brazil imposes USD5.4m fine on Chevron

December 26, 2011

(MENAFN) Brazil’s environment inspector, Ibama, said that since Chevron Corp violated the terms of its environmental license when handling a spill at a well it drilled last month, the inspector …

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IMF head warns global economy threatened

December 26, 2011

(MENAFN – Qatar News Agency) Head of the International Monetary Fund Christine Lagarde has warned that the world economy was in danger and urged Europeans to speak with one voice on a debt crisis …

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Report: China’s retail market to be world’s largest by 2015

December 26, 2011

(MENAFN – Qatar News Agency) Â China”s retail market will likely become the world”s largest by 2015, surpassing the United States, helped by the government”s moves to boost domestic consumption, …

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Chinese, Japanese leaders unveil deals tighten finance ties

December 26, 2011

(MENAFN – Qatar News Agency) Chinese and Japanese leaders have unveiled initiatives to tighten financial links between the two countries in measures that could expand use of China”s tightly …

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Pakistan’s banks’ credit risk remains high

December 26, 2011

(MENAFN) Pakistan’s central bank said that credit risk of the country’s banks remained very high, and they would face a drop in credit quality, reported Gulf News. The State Bank of Pakistan …

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UN passes leaner 2012-2013 budget

December 26, 2011

(MENAFN – Saudi Press Agency) The U.N. General Assembly on Saturday approved a 5 percent decrease in the United Nations’ budget for 2012-2013 over the previous two-year period, only the second time …

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Gold settles above USD 1,600 per ounce last week

December 26, 2011

(MENAFN – Kuwait News Agency (KUNA)) The price of gold kept above USD 1,600 per ounce last week but failed to cross the USD 1,641 mark, said the latest specialized report by Al-Zummorroda Jewellery …

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