Links: 2012-08-13

Lots of links today on the usual topics with a special emphasis on Blackberry

 

House Intelligence Committee kept Congress in the dark about NSA spying, says representative | The Verge

“Since the revelations about NSA surveillance have come to light, both the White House and some members of Congress have insisted that the programs involved were common knowledge. Amash’s statement casts doubt on this, backing up claims that many Congressmen and women had only a vague understanding of American intelligence operations. It also places suspicion on a more unusual suspect: a small group of members in the House of Representatives itself.”

Japan machinery orders fall in a sign of weak capex | Reuters

“Weak capital spending is a source of concern for Prime Minister Shinzo Abe, who faces a tough decision on whether or not to go ahead with a sales tax increase to lift revenues and is reportedly now considering a cut in corporate taxes.

The 2.7 percent fall in core orders, which excludes those of ships and electric power utilities, compared with economists’ median forecast of a 7.2 percent drop and followed a 10.5 percent jump in May, data from the Cabinet Office showed.”

Corporate investment: A mysterious divergence – FT.com

“perhaps the most remarkable result comes from newly available data on private companies studied by Alexander Ljungqvist and colleagues at Harvard and New York University. They find that, keeping company size and industry constant, private US companies invest nearly twice as much as those listed on the stock market: 6.8 per cent of total assets versus just 3.7 per cent.

Private companies are four times more responsive to new investment opportunities and, when a private company goes public, it changes its behaviour. “

The NSA is turning the internet into a total surveillance system | Alexander Abdo and Patrick Toomey | Comment is free | theguardian.com

“That principle of pre-emptive surveillance threatens to subvert the most basic protections of the fourth amendment, which generally prohibit the government from conducting suspicion-less fishing expeditions through our private affairs. If the government is correct that it can search our every communication in case we say or type something suspicious, there is little to prevent the NSA from converting the internet into a tool of pervasive surveillance.

Because of this very real possibility, these programs should be brought out of the twilight zone of the national security state and into the daylight, so that the public can decide for itself what privacy means in a digital age.”

Obama Begins Vacation Golfing With Wall Street Supporter Wolf – Bloomberg

““I am very close with the president and I believe in the direction he’s going with education, with health care, certainly on some of his policies on infrastructure,” Wolf said on Bloomberg Television in February.

Obama and the business community will have a “much deeper alignment on some of his policies, especially immigration and tax reform,” Wolf said. “

Ireland’s government debt jumps 39pc in twelve months – Independent.ie

“The hike reflects the liquidation of the former Anglo Irish Bank earlier in the year, as the controversial promissory note was scrapped and replaced by a series of longer-term government bonds.

A by-product of the deal also meant that Irish resident investors increased their share of long term debt.”

Suit Accuses Online Lender of Violating New York Rate Caps – NYTimes.com

“New York State’s top prosecutor filed suit on Monday against an online lender that offers short-term loans at interest rates of more than 300 percent, the latest warning shot in a sweeping battle by state authorities to enforce local interest rate caps.”

Larry Ellison says ‘we already know’ Apple is doomed without Steve Jobs | The Verge

“We saw Apple with Steve Jobs,” said Ellison, raising a finger of a single hand to the sky in a meaningful gesture. “We saw Apple without Steve Jobs.” Down came the finger again. “We saw Apple with Steve Jobs.” Up went the finger.

“And now, we’re going to see Apple without Steve Jobs,” he ended, making it clear with a last downward flourish that he believes the fortunes of Apple are not long for this world without the company’s mentor at hand.”

Employees Hear AOL Chief Fire Patch Executive – WSJ.com

“”If you think what’s going on right now is a joke, and you want to joke around about it, you should pick your stuff up and leave Patch today. And the reason is, and I’m going to be very specific about this, is Patch from an experience—Abel, put that camera down right now! Abel, you’re fired. Out!” Mr. Armstrong said, according to the recording.”

Samsung Galaxy S4 (MetroPCS) Review & Rating | PCMag.com

“The Samsung Galaxy S4 is the ultimate kitchen-sink Android phone for 2013, and MetroPCS brings it with low monthly rates.”

BlackBerry Board of Directors Announces Exploration of Strategic Alternatives – Press Releases

“BlackBerry Limited (NASDAQ:BBRY) (TSX:BB), a world leader in the mobile communications market, today announced that the Company’s Board of Directors has formed a Special Committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment. These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the Company or other possible transactions. “

BlackBerry may put itself up for sale | Reuters

“Companies tipped as possible partners for BlackBerry have included Microsoft Corp and Amazon.com Inc, as well as Lenovo Group Ltd, where a senior executive said earlier this year the Chinese computer maker would consider a bid for BlackBerry to boost its own mobile business.

But Chinese involvement would trigger deep concerns about security issues from the Canadian government.

Sources say Wall Street bankers have also pitched deals involving BlackBerry to companies such as HTC Corp and Samsung Electronics Co Ltd, so far without success.”

BlackBerry Faces Dwindling Options for a Deal – NYTimes.com

“It also isn’t clear whether bigger competitors like Microsoft or Samsung would be willing to spend money on a beleaguered rival, at least at this point. Some analysts have likened a potential acquisition to Hewlett-Packard’s disastrous purchase of Palm Inc., which essentially led to the smartphone pioneer’s demise after only one year.

Amitabh Passi, an analyst at UBS, suggested that potential buyers may be willing to let BlackBerry flail about further before making a move at a lowball price.

Chinese companies like Lenovo, one natural set of buyers, are considered the least likely to succeed. The governments of both Canada and the United States, who remain important BlackBerry customers, would almost certainly reject any deal involving a Chinese suitor.

There is the possibility that BlackBerry’s biggest shareholder, the Canadian investment firm Fairfax Financial, will have a role in any deal. V. Prem Watsa, chairman and chief executive of Fairfax, disclosed on Monday that he had resigned from the smartphone maker’s board to avoid possible conflicts that may arise from the strategic review. That suggests that Mr. Watsa will seek to partner with potential suitors, contributing Fairfax’s roughly 10 percent stake.”

Here’s a secret 2012 BlackBerry takeover plan that never happened — Tech News and Analysis

“The full plan can be seen here on SlideShare where Robin Chan, an Angel Investor at Time Machine Ventures, posted it after BlackBerry’s official statement to explore strategic alternatives was published. Called Project BBX, the plan was secretive and bold.

nterestingly, part of the plan Chan shares mirrors the expectation I presented in a 2012 prediction post: Namely, that BlackBerry ceases to make hardware and focuses on services.

Why do that? Simple: Margins in the hardware business are low but the margins on BlackBerry’s services are sky-high by comparison.”

Who Would Buy BlackBerry? – NYTimes.com

“At the rate BlackBerry is plummeting, it would stain any buyout.

A clean balance sheet makes the $5.4 billion Canadian company an enticing takeover candidate. Like Dell, it’s a technology legend in need of a turnaround. BlackBerry’s cash flow is worse, though, meaning applying leverage would be extra risky. And the Palm precedent should scare corporate buyers.

The formerly dominant smartphone maker has its attractions. With zero debt and nearly $3 billion of cash and short-term investments, it has left itself wiggle room to cope with the hard times. BlackBerry also owns a patent portfolio worth up to $1.5 billion, according to analysts at Jefferies. That means the market is essentially valuing the operating business of what was an $80 billion company not long ago at about $1 billion.”

Android Obliterates Smartphone Market – Digits – WSJ

We know Android is dominating but given the Blackberry sale news, this is the real story here:

“BlackBerry, which launched its new BlackBerry 10 operating system in January, has a worldwide market share of just 3%, down from 5% a year ago, according to IDC’s latest market share report released Wednesday. BlackBerry’s showing was so weak that IDC noted in its release that the Canadian company had reached “levels not seen in the history of IDC’s mobile phone tracker.””

Eric Holder Owes the American People an Apology – Bloomberg

“The Justice Department made a long-overdue disclosure late Friday: Last year when U.S. Attorney General Eric Holder boasted about the successes that a high-profile task force racked up pursuing mortgage fraud, the numbers he trumpeted were grossly overstated.

We’re not talking small differences here. Originally the Justice Department said 530 people were charged criminally as part of a year-long initiative by the multi-agency Mortgage Fraud Working Group. It now says the actual figure was 107 — or 80 percent less. Holder originally said the defendants had victimized more than 73,000 American homeowners. That number was revised to 17,185, while estimates of homeowner losses associated with the frauds dropped to $95 million from $1 billion.

The government restated the statistics because it got caught red-handed by a couple of nosy reporters.”

Inflation: Lebensmittel verteuern sich stark – SPIEGEL ONLINE

Inflation in Germany on things like food has picked up. But the level is still just 1.9% in the past year. The title of this article goes to inflation-phobia but the reality is that consumer price inflation is not rampant in Germany.

Japan must press ahead with tax reform – FT.com

I am not buying any of this:

“In truth, the reasons for the collapse after 1989 and the recession of 1997 do not lie with the hike in sales taxes. Huge domestic deleveraging pressures and the recessions first in the US and subsequently in emerging Asia were probably the real causes. Still, the impression sits deep. At the very least, the increase in consumption taxes prompted a sharp spike in household spending. “

Stance on Banks Hardened for Fed’s Yellen – WSJ.com

“Janet Yellen, a top contender to lead the Federal Reserve, has evolved—in her own words—from a slightly “docile” regional bank regulator into a proponent of hard and clear rules designed to make banks less risky.

The change was prompted by her six years as president of the Federal Reserve Bank of San Francisco during a torrid period in financial history. As part of that job, which she held through 2010, Ms. Yellen oversaw scores of banks, some of which failed as the housing market collapsed.”

Japanese markets react to PM’s corporate tax cut intention – Independent.ie

“The Nikkei newspaper quoted government sources as saying Abe has called for a study on lowering the corporate tax rate as a way of easing the burden on Japanese companies and attracting foreign investment.

“The media report on Abe’s move to consider lowering the corporate tax is positive for the stock market,” said Mitsushige Akino, a fund manager at Ichiyoshi Asset Management.

Tokyo’s Nikkei share average climbed 2.6pc in light volume, rebounding after it fell to its lowest since end-June following Monday’s slower-than-expected GDP data. Tuesday’s gain took the index to just below its 13-week moving average.”

Spanish struggle amid unemployment crisis – The Washington Post

“A Spanish family in crisis: In Spain, unemployment has shot from 8.6 percent in 2007 to 26.3 percent. Amid this uncertainty, one family — Josefa Vida Bermudez, 47, Francisco Gea Ramos, 49, and their sons, Francisco Jose Gea Vida, 21, and Alejandro Gea Vida, 19 — tries to maintain hope for the future.”

Android is better — PaulStamatiou.com

“It was just meant to be a quick experiment. I started using a Nexus 4. I was going to go right back to my iPhone after a week. I was designing more and more Android interfaces at Twitter and realized I needed to more intimately grok Android UI paradigms.

A week in it started feeling normal; the larger form factor was no longer a nuisance. A month in I didn’t miss anything about my iPhone. Two months in I sold my iPhone 5 and iPad Mini. It has now been three months since I made the switch. I’m loving Android. I only missed having a good camera so I just upgraded to a Google Edition Samsung Galaxy S4.”

When is the best time to sell your old iPhone? Probably right now — Tech News and Analysis

“there is some art to timing the sale of an iPhone, and unfortunately, the ideal time to cash in was last month, according to NextWorth, a company that will buy used iPhones based on its current market value. And with the clock ticking on the next generation iPhone’s official release, that price is rapidly dropping.”

President Obama orders intelligence chief accused of lying to Congress to lead NSA review | The Verge

“The review group is intended in part, as the president said last week, to “maintain the trust of the people” — so why did the president put a man at the center of the spying controversy in charge?”

This Independent Technical Review Group Brought to You By the Booz Allen Hamilton Director of National Intelligence™ | emptywheel

“neither Obama nor the Intelligence Committees get to hear from this Group themselves. It all goes through James Clapper.

What on Friday was an outside and independent group is now branded by the Director of National Intelligence as the Director of National Intelligence Group.”

Greece’s Fiscal Discipline Starts to Pay Off – WSJ.com

This headline is seriously off given the fact that unemployment is over 25% in Greece and above 60% for 15-24 year olds. This is a ridiculous headline.

Merkel Seeks to Share the Blame for NSA in German Election Campaign – SPIEGEL ONLINE

“German Chancellor Angela Merkel is trying to share the culpability for the NSA surveillance scandal with the opposition Social Democrats. It is a risky strategy, particularly now that German intelligence is suspected of having helped the US determine targets for drone attacks in Afghanistan.”

U.S. Budget Deficit Shrinks as Revenues Rise – WSJ.com

“The U.S. government is posting record revenues as higher tax rates and a slowly improving economy boost receipts, leaving the federal budget on track for its smallest deficit in five years.

Revenues from October through July, the first 10 months of the fiscal year, totaled $2.287 trillion, the Treasury Department said Monday. That’s up about 14% from a year earlier and the heftiest sum on record for the same time period. “

Mayor Rob Ford weighs in on staggering walk-about: DiManno | Toronto Star

This guy is always making headlines. You gotta love him

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