News links for 14 Mar 2013
“Google’s Larry Page today announced in a blog post that former Android chief Andy Rubin would be stepping down from that position and moving on to something else within the company to be replaced by Chrome VP Sundar Pichai. Now, The Wall Street Journal has obtained an email to Android partners from Rubin describing his pride in Android and his reasons for taking a new role. The email is quoted in full below:”
LinkedIn Shares Reach Record High – Mike Isaac – Social – AllThingsD
“Not two days after Kara Swisher reported that LinkedIn would soon acquire the Pulse news reader app for more than $50 million, shares of LinkedIn were trading at a record high on Wednesday morning, reaching $181.47 at their peak before settling back down around $179, a gain of about 2 percent for the day. The company also reported record earnings last quarter, outperforming analysts’ expectations.”
La áspera relación de los Kirchner con Bergoglio
On the new Pope: “Nestor called him the “true representative of the opposition.” With Cristina, he had a cordial relationship, but with swings.”
Ireland upbeat after ‘extraordinary response’ to bond sale | Business | The Guardian
“Dublin said the demand for benchmark 10-year bonds meant the time was rapidly approaching when it would no longer have to rely on external financing”
In Rare Move, Apple Goes on the Defensive Against Samsung – WSJ.com
“Mr. Schiller shared data on the iPhone’s popularity and said Apple’s own research shows that four times as many iPhone users switched from an Android phone than to an Android phone in the fourth quarter.
His remarks come as Apple has been gently suggesting similar messages in recent months as competitors such as Samsung have been gaining buzz—and market share.”
Apple’s Schiller speaks out against Android on eve of Galaxy S4 debut
“With just hours to go before Samsung is expected to announce the next-generation Galaxy S4 smartphone, Apple Senior Vice President of Worldwide Marketing Phil Schiller offered his thoughts on why devices running Google’s Android are inferior products compared to the iPhone and iOS.”
Poll: Fiscal fights take toll on Obama approval – CBS News
“President Obama’s approval rating has taken a hit from its post-reelection high, dropping back to 50 percent as confidence in his economic stewardship has wavered, according to a new Washington Post/ABC News poll.
In December, shortly after he was reelected to a second term, Mr. Obama towered over congressional Republicans on the question of whom the public better trusted to deal with the economy. By 18 points – 54 to 36 percent – respondents selected the president over the congressional GOP.”
Google kills Google Reader, says it will go offline on July 1, 2013 — Tech News and Analysis
“Google is shutting down more projects it considers distracting to core business. So far it has shut down 70 such apps and services, but it is Google Reader whose loss I bemoan.”
Google Reader’s Death Is Proof That RSS Always Suffered From Lack Of Consumer Appeal | TechCrunch
“I’ve heard many smart people try to explain RSS to normal folks, such as “turning content into television stations, allowing you to subscribe only to what you want to consume.” That one didn’t work. Neither did any other explanation, because RSS as a technology is too nerdy, too behind-the-scenes and lacked general consumer appeal. Nobody ever took RSS under its wing and “mentored” it.”
Google Reader Is Shutting Down; Here Are the Best Alternatives
“Google announced today that it’ll be closing Google Reader’s doors on July 1st of this year, meaning you’ll need to find a new way to get your news fix. Here’s how to export all your feeds and put them into a new reader.”
The Google Reader Shutdown Is Yet Another Nail In Feedburner’s Coffin | TechCrunch
“How long until Google shuts down Feedburner? The company just announced that it is shutting down Google Reader on July 1. That’s a sad day for all of us who still regularly use it, but its demise was probably inevitable. Reader had been lingering in a stasis for months (maybe even years) now, especially since Google ripped out its social core in favor of focusing on Google+ and barely dedicated any staff to maintaining it. The last RSS-focused product Google closed was AdSense for Feeds, its ad product for site owners who wanted to monetize their RSS feeds. With Reader and AdSense for Feeds gone, the last RSS product standing at Google is Feedburner – and all signs point to that getting the ax sooner or later, too.”
Bullish retail sales bolster economic outlook | Reuters
“Retail sales increased 1.1 percent, the largest rise since September, after a revised 0.2 percent gain in January, the Commerce Department said on Wednesday. That was well above economists’ forecasts for a 0.5 percent advance.
So-called core sales, which strip out automobiles, gasoline and building materials and correspond most closely with the consumer spending component of the government’s measure of gross domestic product, rose a stronger-than-expected 0.4 percent.
The upbeat report helped extend a stocks rally on Wall Street, with the Dow Jones industrial average .DJI rising for a ninth straight session for the first time since 1996. “
“Bank of England fears that larger private equity deals done in the boom years ‘pose a risk to the stability of the financial system’ as refinancing looms”
Ex-PIMCO executive sues firm, says was fired for reporting misdeeds | Reuters
“In a complaint filed on March 5 in an Orange County, California state court, Jason Williams, 36, said PIMCO fired him last March after he reported that senior managers were involved in a variety of improper activities, including at the height of the recent global financial crisis.
He alleged that these activities included insider trading; the manipulation of the price of an exchange-traded version of PIMCO Total Return, the world’s largest bond fund; and the alleged overvaluing and public recommendation of securities that PIMCO was “aggressively” selling at the time.”
“How Google accidentally built a truly beloved social network, only to steamroll it with Google+. The sad, surprising story of Google Reader.”
Google Reader lived on borrowed time: creator Chris Wetherell reflects — Tech News and Analysis
“Google Reader was doomed to fail from the very beginning: the company never really believed in it and it took big effort on part of a small team to make it work. Chris Wetherell, original creator & part of the Reader team reflects on past & the future.”
Shanghai Finds 6,600 Dead Pigs as Farm Confesses to Dumping – Bloomberg
“The municipal government pulled 685 hogs from the river yesterday, adding to the 5,916 it had retrieved earlier, according to a statement on its website. A farm in Jiaxing admitted to discarding dead pigs in the river, after 70,000 of the animals died in the city from crude raising techniques and extreme weather at the start of the year, Xinhua said yesterday, citing the Jiaxing authorities. The Xinhua report didn’t specify whether other farms were involved in the dumping.”
Bartender Who Recorded Mitt Romney ’47 Percent’ Comments Will Explain Why He Did It
“Months after recording an event that some say single-handedly won President Barack Obama’s reelection in November, the source of the infamous “47 percent” video — in which Mitt Romney is seen speaking candidly to donors at a $50,000-per-plate fundraiser — will reveal himself.”
Welfare recipients hit all-time high | The Japan Times
“The number of people receiving welfare benefits nationwide hit an all-time high for the eighth consecutive month in December, totaling 2,151,165, the welfare ministry said Wednesday.
The number of households on welfare hit 1,570,823 — also a new record.”
Samsung’s forthcoming Galaxy S IV has already been eclipsed by competitors in China – Quartz
“At this point, Samsung is selling a commodity. Unlike Apple, which can bind its hardware to a unique app store and software ecosystem, Samsung’s most popular smartphones run Google’s Android OS, which is available for free to any manufacturer. The app store on the Galaxy line of phones also belongs to Google. Even the microchips, display, memory etc. in Samsung’s phone are, at this point, commodities available to all.
Samsung has played the commodity phone game well up to this point, but it’s easy to forget that in part that’s because the company had a head start.”
Commerzbank to Raise Capital and Repay Taxpayer Money – NYTimes.com
“Commerzbank said on Wednesday that it would repay a taxpayer bailout and ask shareholders for more capital, moves that would reduce the German government’s influence over the bank but also dilute current shareholders.
Commerzbank, Germany’s second-largest bank after Deutsche Bank, said it would raise 2.5 billion euros ($3.3 billion) by selling new shares to existing shareholders. The issuance of new shares will reduce the German government’s stake in the bank to less than 20 percent, from 25 percent. As a result, the government would no longer have the right to veto management decisions.”
Amazon Cuts Price of Large-Screen Kindle Fire HD – WSJ.com
“Amazon.com Inc. pared the price of its large-screen Kindle Fire HD tablets by as much as 20%, undercutting rival Apple Inc.’s iPad.
The Seattle-based Web retailer said the 8.9-inch Kindle Fire HD with 4G wireless capability will start at $399, down from $499. Amazon reduced the price of the Wi-Fi only version by $30 to $269.
Apple’s original iPad line starts at $499 for a Wi-Fi only model, though a version with same amount of memory as a comparable Kindle Fire HD costs $599. “
Tepper Thinks S&P Could Rise 20 Percent – Business Insider
“Back in January, Tepper told Bloomberg TV’s Stephanie Ruhle that he was going to “come out of the closet” as being bullish in 2013.
His reasoning was that there there were no major negatives and basically nothing to really be bearish about.
“This country is on the verge of an explosion of greatness,” he told Bloomberg TV, “An explosion of greatness.””
Reaching for Yield and Tripping the Risk Fantastic – MarketBeat – WSJ
“Take a look at our bond benchmarks page: CCC-rated high yield bonds are returning 4.72% this year. In fact, the high-yield benchmarks are the only ones in the green for the year. U.S. government bonds are down, investment grade corporates are down.
It’s similar in the leverage-loan market. Leveraged loans rated CCC, i.e., junk, have indeed been having the best year in this particular universe. They’ve returned 2.21% year-to-date, compared to 1.27% overall. The Leveraged Loan 100 index, a benchmark that S&P maintains, has returned 1.28% so far this year.
What’s happening is that as investors are being forced farther and farther afield in this search for yield, leveraged-loan markets are seeing a surge in demand.”
Ireland smashes expectations with first post-bailout 10-year bond issue – Telegraph
“Traders said the new debt would yield around 4.15pc, compared to a yield of 3.7pc on Ireland’s current benchmark 2020 bond.
At the height of bailout fear less than two years ago, the yield on the 2020 bond had stood at more than 15pc.”
IFR Comment: Next stop for Ireland… OMT and ratings upgrade | Capital City | IFRe
As I have been saying for some time, this is where Ireland is headed. If Europe listens to the IMF and helps to deburden the state of the bank debt, the move out of the Troika program will be permanent.
“A 10-year benchmark sale from Ireland takes the sovereign a step closer to having full market access. It would also make Ireland the first eurozone country to meet the strict conditionality of the ECB’s OMT program.”
Sugar Bailout Is Govt. Policy at Its Worst: Hypocritical and Stupid | Daily Ticker – Yahoo! Finance
“Meanwhile, rising obesity rates are the biggest contributor to the overall rise in health care spending. If adult obesity rates were to fall back to 2007 levels of 28%, the CBO estimated in 2010 that per capita spending on health care for adults would rise by 65% — from $4,550 in 2007 to $7,500 in 2020.
Of course, obesity rates have risen since 2007 and there’s also the growing threat of childhood obesity, which can lead to a lifetime of medical problems – and higher per capital costs.
Thus, it boggles the mind why the White House would even consider, must less support, further bailouts of the sugar industry.”
Business Inventories in U.S. Increase by Most Since May 2011 – Bloomberg
This means, along with the good retail sales numbers, Q1 GDP estimates are getting revised up.
“Inventories in the U.S. rose in January by the most since May 2011 as companies replenished warehouses and shelves amid signs demand will pick up.
The 1 percent increase in goods on hand exceeded the highest forecast in a Bloomberg survey and followed a 0.3 percent gain in December that was more than previously estimated, Commerce Department figures showed today in Washington. The median estimate was for a 0.5 percent advance.”
How to Avoid Sounding Like an Idiot When Discussing Politics
“We all know someone who loves to talk politics but sounds like a jerk every time they do. Talking about politics may be taboo for many of us but it doesn’t have to be. Discussing—not arguing—politics is important to broadening our horizons, cementing our opinions, or just understanding others. Here’s how to do it without frothing at the mouth, in an actual intelligent way.”
Sugar Bailout’s No Sweet Deal for Taxpayers or Candy Companies – MarketBeat – WSJ
“With domestic sugar prices plumbing four-year lows, the USDA is considering intervening in the market, buying up sugar to boost prices and keep processors above water.
The move would be a hit not only to taxpayers, who would foot the bill for those purchases, but also to U.S. candy companies, who unlike sugar producers and processors, have to compete in a free market environment.
U.S. sugar prices have been an average of 116% higher than world sugar prices since 1990, because of a government price-support system that limits imports of the sweetener.”
Europe’s house price bubbles: Iceland, Ireland and Spain updated | FT Long Short
“This, just like the country’s return to economic growth, looks like another justification for Iceland’s decision to refuse to bail out its banks, unlike most of the rest of the world.
Now, I’m no friend of bank bailouts, and would much rather see middle-class bank creditors take losses than taxes rise on the poor to subsidise those creditors.
But things aren’t quite as simple as the housing chart shows. As well as cleaning up its banking system through a gigantic default, in large part on foreigners, Iceland’s krona has collapsed.”
Bulgaria’s Revolt Against Consensus by Ivan Krastev – Project Syndicate
“Many European countries are now embroiled in such revolts, as popular backlash against tough austerity turns into protest against the functioning of representative democracy. With populist movements gaining traction across Europe, the left-right dichotomy is fading. Now, it is the people versus the political class, “us” against “them,” the 99% against the 1%.
Consider the current wave of popular protests against rising electricity bills in Bulgaria, which has already brought down the country’s center-right government. While Bulgaria has a low budget deficit, it remains the EU’s poorest member state, weighed down by slow GDP growth and high unemployment. Almost one million Bulgarians have left the country since 1989.”
U.S. Auto Sales Pace at Slowest Since GM, Chrysler Bankruptcies – Businessweek
“Sales of new cars and trucks in the U.S. have cooled to the slowest pace in more than three years even as automakers increase spending on incentives.
The average number of days needed to sell new vehicles rose to 64 at the end of February, the most since August 2009, Bloomberg Industries said in a report today. Carmakers have also raised incentives to 7.8 percent of a vehicle’s price to lure buyers, the highest ratio since 2011, analyst Kevin Tynan wrote in the note. Incentives increased more than 8 percent in both January and February, he said.”
Sputtering global economy belies stockmarket boom – Telegraph
“Asia’s economic recovery is losing momentum and Europe’s slump is proving deeper than expected, raising concerns that soaring stock markets globally have jumped ahead of economic reality.”