Thursday, September 20, 2007

The U.S. economy and its currency as an instrument of world trade has suffered a series of major setbacks in recent months. Some analysts say that the Federal Reserve‘s September 18^th dramatic rate cut to 4.75% from 5.25% may be a case of “too little, too late”, or that it was excessive and dooms the dollar.

Today, Saudi officials declined to cut interest rates in lockstep with the US Federal Reserve for the first time in decades. According to Ambrose Evans-Pritchard, International Business Editor for The Daily Telegraph, “it’s a signal that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.”

Hans Redeker, the Currency Chief at BNP Paribas, also stated today that Saudi Arabia’s move to not adjust their own interest rates in sync with the Fed’s cuts is a very dangerous situation for the US dollar. Redeker points out that “Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States.”

Saudi central bank officials said that “appropriate measures” would be taken to stop the large capital inflows into the country. The Federal Reserve’s half-point rate cut has already caused a plunge in the world dollar index to a fifteen-year low, reaching the weakest level ever against the Euro at just under $1.40.

The Fed hopes that by making it cheaper to borrow, people will start spending and investing more. However, some analysts fear the cut will worsen inflation, making it harder to get personal loans, and further decrease confidence in the dollar around the world. There are already signs that global investors have started rejecting U.S. Treasury securities, and recent U.S. government data on foreign holdings show a decline in purchases of US securities from $97bn to just $19bn in July.

In response to Ben Bernanke‘s statements today about a potential mortgage and housing market crisis, CNN anchor Wolf Blitzer said, “If adjustable mortgage rates go up, people may not be able to afford their mortgage payments.” Former Federal Reserve chief Alan Greenspan said earlier this week that housing prices may fall by “double digits” as the subprime crisis bites harder, prompting households to cut back sharply on spending.

Jim Rogers, the economic commentator and former partner of George Soros, stated, “If Ben Bernanke starts running those printing presses even faster than he’s already doing, we are going to have a serious recession. The dollar’s going to collapse, the bond market’s going to collapse. There’s going to be a lot of problems.”

In recent months, the U.S. dollar has taken several other significant hits including Kuwait’s decision in May to also break its dollar peg, and threats by China to interfere with the U.S. economy, calling it their nation’s “nuclear option”. According to public sources, the Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions that seek to force a Yuan revaluation.

Sunday, December 23, 2012

Wind storms swept across a large part of Texas on Wednesday, leaving property damaged and many homes without power.

Downed lamposts and trees were reported in multiple locales. One media source reported overturned playground equipment in the city of Rockwall. Winds up to 40 miles-per-hour (mph) were reported over much of the Dallas-Fort Worth Metroplex. Approximately 9,500 people within Tarrant and Dallas counties were without electrical power as late as Thursday afternoon.

Late Wednesday evening, the National Weather Service reported winds at Dallas Love Field up to 66 mph. The city of Edgewood recorded wind speeds up to 70 mph during the storm; three homes, two barns and two business buildings sustained damage. A home in Chandler was damaged when a tree was toppled during the storm (see photo at left).

Dust from as far away as west Texas covered vehicles and other property early Thursday morning in the eastern part of the state. A car wash manager in Tyler told media his business cleaned about three hundred cars on Thursday, busier than usual even for holiday season.

Thursday, January 4, 2007

Bicycle sales in Australia have recorded record sales of 1,273,781 units for 2006, exceeding car sales by 32 percent. It is the fifth year in a row that the bicycle industry has sold more than one million units, a figure yet to be realised by car manufacturers.

The Cycling Promotion Fund (CPF) spokesman Ian Christie said Australians were increasingly using bicycles as an alternative to cars. Sales rose nine percent in 2006 while the car market stalled. Mr Christie said people were looking to cut their fuel costs and improve their fitness.

Mr Christie said organisations were beginning to supply bicycles as a company vehicle. “There is an emerging trend towards people using bikes as their official company-supplied vehicle in place of the traditional company car,” he said.

“Some of Australia’s biggest corporations now have bicycle fleets, and when you add in government organisations, we now know of at least 50 organisations which operate fleets of bikes.”

“Although the company bicycle is a long way from taking over from the company car, it’s an important trend when you consider that nearly half of all cars sold are to company fleets.”

The CPF claims most commutes to work are less than 5 kilometres (3 miles) making bicycle travel a viable alternative.

Tuesday, June 9, 2009

Indonesian state-owned flag carrier Garuda Indonesia has been expanding, with the airline set to add nine new jets to its fleet and double its flights between Jakarta and Kuala Lumpur. Garuda is also considering a bid for defunct rival Linus Airways.

Garuda is expecting the imminent arrival of four new Airbus jets and five new Boeings. The Airbuses, A330-200s, are earmarked to fly international routes to Seoul and Shanghai starting in July. All four have Internet and telephone access for passengers. The Boeings, B737-800 Next Generation aircraft, are due to be in service by the 2010.

Also planned before the year’s end is the increase in flights on the Jakarta-Kuala Lumpur route from one to two per week. “We saw our current load factor[s] have reached 75 percent and even more during school breaks like June and July,” Said the company’s Vice President for Network Oversight, Risnandi. “This is very promising.”

Garuda is now reported to be considering a bid for Linus, who stopped operating on April 27 and have recently been stripped of the rights to fly their former routes as legally required for airlines that do not operate for more than thrity days. Linus still holds some documents of worth to Garuda for transfer to their subisidiary Citilink.

“I heard that Garuda intends to buy Linus who already hold an aviation business license (SIUP) and an air operators certificate (AOC) for the scheduled air services,” said Indonesian Director General of Civil aviation Herry Bakti S. Gumay to reporters for Bisnis Indonesia. He said that his office was in favour of a takeover by Garuda because foreign bids are limited to holding a maximum total of 49% of the shares in Linus.

Linus Airways’ President Directer Indra said that “we are flexible to acquisition, depending on the investor. If someone wants to buy 100% of the shares we can release our shares, but if someone wants take only a majority shareholding with us as a partner – we are also open.” Indra commented that he has had an informal meeting with Garuda CEO Emirsyah Satar but says that they never discussed acquisition by Garuda and that Linus is already in talks with another ‘strategic investor’ with a view to resuming operations.

Two airlines, Riau Airlines and Kartika Airlines, have both launched bids for the ten routes formally operated by Linus, which include four from Jakarta and three from Batam.

Garuda Indonesia’s Financial Direcotr Eddy Purwanto has anounced that US$650 million worth of loans from Bank Mandiri have been restructured. Garuda, who has apointed Rothschild’s as their international financial advisors, will now pay US$450 million by 2015.

Sunday, September 12, 2010

The Finnish communications corporation Nokia announced that its Head will change on September 21. The previous chief executive Olli-Pekka Kallasvuo will continue to chair in non-executive capacity. The head of Microsoft Business division Stephen Elop will take the position. It is the first time a non-Finn becomes Nokia president and chief executive.

The change follows Nokia’s fall in world markets. It includes a decrease in Nokia’s American market share to less than ten percent after failed negotiations with a number of leading American phone providers. An analyst at a market analyst company Canalys, Pete Cunningham, said, “Despite holding 38 percent market share of the smartphone market, Nokia’s failure to compete with the iPhone and high-tier Android devices, combined with its lack of progress in gaining significant traction in the United States, has led to press and investor dissatisfaction.”

Some commenters suggested that Nokia chose Mr. Elop partly because he is a Canadian, following criticism of American candidates by the Finnish press. However a Nokia spokesman rejected this, saying, “Nationality was not a selection criteria.”

Stephen Elop was president and CEO of the graphics and web-development software house Macromedia prior to its acquisition by Adobe in 2005. He then joined Microsoft as President of Microsoft’s Business Division in January, 2008. Commenting on his new role he said, “Nokia has a unique global position as well as a great brand upon which we can build. The Nokia slogan clearly states our key mission: Connecting People, which will acquire new dimensions as we build our portfolio of products, solutions and services.”

In the announcement the Chairman of the Nokia Board of Directors Jorma Ollila stressed an expected shift of focus from hardware to software. “His [Stephen Elop’s] strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company. We believe that Stephen will be able to drive both innovation and efficient execution of the company strategy in order to deliver increased value to our shareholders”.

Nokia stated in an official blog post, “Nokia is transitioning from a hardware manufacturer of mobile devices to a software and solutions business. …Stephen’s background in the software industry is one of his key strengths.”

Saturday, August 25, 2007

The leading supplier of school uniforms in the United Kingdom, Lancashire-based manufacturer Trutex, has announced it is “seriously considering” including GPS tracking devices in future ranges of its uniform products after conducting an online survey of both parents and children.

“As a direct result of the survey, we are now seriously considering incorporating a [tracking] device into future ranges” said Trutex marketing director Clare Rix.

The survey questioned 809 parents and 444 children aged nine to 16. It showed that 44% of parents were worried about the safety of pre-teen children, and 59% wanted tracking devices installed in school apparel. 39% of children aged nine to 12 were prepared to wear clothing with tracking devices in them, while teenagers were notably less enthusiastic and more wary of what Trutex has admitted they see as a “big brother” concept.

However, Trutex has claimed the tracking devices would bring about worthwhile benefits, including being a valuable resource for parents who wanted to keep a close eye on where their children were at all times.

“As well as being a safety net for parents, there could be real benefits for schools who could keep a closer track on the whereabouts of their pupils, potentially reducing truancy levels” says Rix.

Each year, Trutex supplies 1 million blouses, 1.1 million shirts, 250,000 pairs of trousers, 20,000 blazers, 60,000 skirts and 110,000 pieces of knitwear to the UK.

It is not the first company to manufacture school uniforms with a central focus on child safety; last week Essex firm BladeRunner revealed it was selling stab-proof school blazers to parents concerned about violence against their children. The blazers were outfitted with Kevlar, a synthetic fibre used in body armour. It has already received orders internationally, including Australia.

If the Trutex tracking devices go ahead, it is unclear where in the uniform they will be located.

Saturday, October 7, 2006

In the 2006 World Cup final, Fabien Barthez’s mistake allowed Materazzi to score a decisive goal.The bald keeper, who’ll be remembered for being top-head kissed at the start of each international match by teammate Laurent Blanc, was desperately hoping for revenge against Italy last September in the Stade de France but Grégory Coupet became the #1 rated French football goalkeeper therefore pushing Fabien in retirement announced officially yesterday.