Important news from Maura

Link economy and journalism

Mon, 17 Oct 2011 14:34:12 -0400

The following is a guest column by Chris Ahearn, President, Media at Thomson Reuters. Last summer, I published a blog post that laid out my feelings about the link economy and its positive contribution to the evolution of the business of journalism. One year later, Reuters.com continues to encourage linking to the rich content we offer and even pulling interesting excerpts for discussion in a different forum. In exchange for that occasional use of our content, we ask others to respect the hard work our journalists put into their craft and in some cases risk their lives in doing so by offering prominent links and attribution. We encourage bloggers and individuals to use a teaser and perhaps add their own perspective to enhance the online experience. The RSS feeds on Reuters.com are designed to make this easy to do. Recently, we engaged in a controlled experiment with Attributor to identify websites that republish complete or near complete versions of Reuters articles and have a commercial model, without a license or agreement. In many cases those websites utilize third party ad networks to monetize their audiences.Â Some question why we object to websites posting full copies of our stories without a licensing agreement. The answer is simple Â we believe it is neither fair nor legal nor ethical. Our efforts to identify such environments are focused on opening up a conversation with these publishers to create a mutually beneficial relationship.Â In the last few days, we received many emails about this experiment, varied in tone from humorous to helpful to downright nasty.Â It seems, however, that some of the facts are being overlooked. First, we absolutely respect and encourage people to discuss and debate breaking news, particularly when referencing our reporting.Â We believe it makes societies stronger and are delighted when it happens.Â Second, we expect websites and users to kindly respect how we wish our content is linked to and excerpted as opposed to copying and pasting (again, that is why we make our RSS feeds available and always welcome linking to the Reuters.com network).Â Third, if websites are commercial in nature (i.e. take advertising) and want to post our full articles we should have a fair commercial relationship. We have established commercial license agreements with some of the biggest brands in the world to utilize the work of our journalists, but we also have tailor made agreements for smaller publishers, bloggers and individuals to create a model that works well for all parties. The way I see it, I prefer to resolve issues with our business development arm rather than through lawyers.Â That way we can find new ways that respect each otherÂs hard work and make journalism prosper in the digital age.Â Perhaps it is old fashioned, but to me that is doing unto others.

EURO GOVT-ECB intervenes as Italian debt pressured

Thu, 13 Oct 2011 08:47:47 -0400

* Bottom in sight for Bunds as underlying concerns persistBy William JamesLONDON, Oct 13 (Reuters) - Italian debt came under pressure on Thursday as the country sold its latest round of government bonds, prompting the European Central Bank to resume buying its debt in secondary markets to cap rising yields.Ahead of the auctions, 10-year Italian yields climbed to their highest since the ECB began buying the country’s debt in August. Despite receiving solid demand at the debt sale, yields remained under pressure in the cash bond market.Traders said the ECB, which has been largely absent from markets this week, started buying Italian bonds with maturities of around 10 years shortly after the auction, prompting yields to come off their peak.”They (the ECB) started buying BTPs because they were trading so badly,” a trader said.”The auctions looked alright but they came on the back of a 15 basis point concession after the market had been hammered all morning.”Italy sold 6.2 billion euros of debt, split across four bonds, including the first sale of longer term debt that sits beyond the scope of the ECB’s support.Ten-year Italian debt last yielded 5.818 percent, up 7.8 basis points on the day but off a session high of 5.87 percent — a level last seen in August before the ECB began intervening in Italian bond markets.”Even though the auctions went relatively smoothly, investors still remain reluctant to put money into that country because of doubts about the commitment of fiscal policy and political risk,” said Nick Stamenkovic, strategist at RIA Capital Markets.The latest threat to the country’s political stability came as Prime Minister Silvio Berlusconi called a confidence vote in his government, saying a collapse of his centre-right coalition would be catastrophic for the economy.BUNDS REBOUNDAfter falling nearly 5 full points over the last six sessions, the Bund future rebounded to stand 35 ticks higher at 134.91.The bounce countered a sharp selloff on optimism that European policymakers’ latest pledge to find a solution to the euro zone debt crisis would address the market’s key concerns.On Wednesday, European Commission President Jose Manuel Barroso outlined a broad plan to tackle the euro zone’s two-year debt crisis.Technical charts suggested the rebound did little to alter the bearish picture for Bunds, unless resistance levels were taken out at Tuesday’s low of 134.40 and Wednesday’s intraday high of 134.86.Although there has been a lack of detail on proposals to address the euro zone’s sovereign debt and banking problems, the move out of safe-haven bonds may have further to go before bottoming out, analysts said.”There’s potential for this to run a little further if risk appetite can hold up. That’s the key here,” said Eric Wand, strategist at Lloyds Bank, targeting a move to around 2.25-2.28 percent in 10-year Bund yields.Ten-year German yields last stood at 2.158 percent, down 3.4 basis points. Two year yields were down 3.1 bps at 0.675 percent. European equities were 1 percent lower.However, with many market participants holding on to their view that the appeal of safe-haven debt was likely to return in coming months, the recent price falls provided a good opportunity for investors to take new positions at cheap levels.”I still feel confident being a bond bull,” said Commerzbank rate strategist David Schnautz.”We have heard that something is in the offing, but we are talking about the euro zone so there’s implementation risk and picking up the bill still has to be sorted out.”

UPDATE 1-Areva EPR bill seen at 6.6 bln eur-paper

Wed, 12 Oct 2011 16:05:11 -0400

PARIS Oct 12 (Reuters) - French nuclear plant builder Areva’s total bill for its oft-delayed next-generation Finnish reactor is seen swelling to 6.6 billion euros ($9.1 billion) from an initial budget of 3 billion, according to a report in daily Les Echos citing lawmaker Marc Goua.The construction of the 1,600 megawatt European Pressurized Reactor (EPR) is three years behind schedule, a delay Areva blames largely on Finnish power operator TVO’s “inertia” in validating technical documents before passing them to the Finnish nuclear safety authority.”Areva’s management is talking about a total overrun of 3.6 billion euros. We are going from an initial budget of 3 billion to 6.6 billion,” Marc Goua said in an extract of an article to be published in Les Echos’ Thursday edition.Areva was unavailable for comment.Areva and industrial partner Siemens earlier on Wednesday appealed to Finnish utility firm Teollisuuden Voima (TVO) for “intense cooperation and mutual commitment” during the testing phase for an oft-delayed nuclear reactor now under construction.Areva said in a statement that commissioning the reactor would require “significant efforts from all parties” after TVO earlier on Wednesday blamed Areva for further delays to the construction of the Olkiluoto 3 nuclear plant. ($1 = 0.725 Euros)

Bullish Apple investors start calling for dividend

Wed, 12 Oct 2011 15:16:17 -0400

* Has cash hoard of $75 blnBy Sam Forgione and Supantha MukherjeeOct 12 (Reuters) - Apple Inc is starting to hear a common refrain from investors: Show us the money.After the death of chairman and chief innovator Steve Jobs last week, investors still like what they see at Apple: record demand for the latest iPhone 4S pushed its stock price near an all-time high. And it has a cash hoard of $75 billion.A Thomson Reuters survey of 11 portfolio managers taken after the news of Jobs’ death showed strong support for Apple’s new management team led by Chief Executive Tim Cook, and confidence that Apple has at least a few years of great products in development.But they also want Apple to start giving up some cash.”I would opt for a meaningful dividend,” said Peter Deininger, a portfolio manager at Columbia Large Cap Growth Fund, one of Apple’s largest investors.”Given the magnitude of the cash balance and the ongoing free cash flow generation, the company could make a statement about its ability to sustain those flows,” Deininger added.Six of the 11 money managers polled by Reuters called for a dividend payout as a reward for their loyalty — something they fear will be tested as Cook tries to fill Jobs’ shoes.Ten portfolio managers said they still hold Apple stock on faith that Cook will be able to deliver on Jobs’s vision in the near term. But five managers expect investor faith in Apple to be tested in the longer term.”I worry that Steve was a center of gravity for the company and, over time, people will say ‘I wanted to work for Steve’ and go and do something else,” said David Eiswert of T. Rowe Price. “That will be something to watch over the next year or two.”Apple has long resisted a dividend. It has put its money toward internal product development, made the rare acquisition — and built its cash stockpile, which now accounts for about a fifth of its value. Apple’s market cap soared to just shy of $349 billion when Jobs stepped down in August, from $5 billion when he returned to the company in 1997.That unusual torrid growth in a large company has one money manager in the survey bracing for an eventual slowdown.”We haven’t seen a company this size grow, so it has to decelerate,” said Richard Sheiner of Geneva Advisors.So far investors are sticking with the company.”The creative talent at Apple is broad and deep, and it has established a ‘brand moat’ with the consumer,” said Nigel Holland, who helps manage $565 billion at Legal & General Investment Management.And that’s a big reason why three of the managers surveyed said they have bought up all the Apple shares they are allowed to.”There’s every reason to own Apple stock, and we are committed to owning it over the next couple of years,” said Keith Wirtz, chief investment officer of Fifth Third Asset Management.Bruce Olson, co-portfolio manager of the Wells Fargo Advantage Growth Fund , agreed. “The coast is pretty clear for them for the next five years,” he said.Beyond the short term, however, some shareholders are worried about whether Apple can continue to push out innovative gadgets after the product pipeline Jobs left behind is tapped out.”If we saw a slowdown on product launches and developments, that would give us some pause. Less people camping out for a few days to get the new product — that would be symptomatic of it losing its touch,” Wirtz said.One fund manager polled is not waiting around for Apple to fall from grace.”We don’t have shares in Apple,” said Kim Caughey Forrest, vice president and senior analyst at Fort Pitt Capital Group. “Jobs’ death contributed to the skepticism, but it is also the closed environment of selling hardware and software together that works extremely well for consumers but not so well for business.”

New Issue-RATP prices 400 mln euro 2026 bond

Wed, 12 Oct 2011 12:47:40 -0400

Borrower Regie Autonome des Transports Parisiens(RATP)Issue Amount 400 million euroMaturity Date October 19, 2026Coupon 3.75 pctReoffer price 99.56Spread 75 basis pointsUnderlying govt bond Over Mid-swapsPayment Date October 19, 2011Lead Manager(s) BNP Paribas, Credit Agricole CIB &HSBCRatings Aaa (Moody’s), AAA (Fitch)Full fees UndisclosedFor ratings information, double click onFor all bonds data, double click onFor Top international bonds newsFor news about this issuer, double click on the issuer RIC,where assigned, and hit the newskey (F9 on Reuters terminals)Data supplied by International Insider.

U.S. open to Afghan peace deal including Haqqani

Wed, 12 Oct 2011 04:35:30 -0400

“Where we are right now is that we view the Haqqanis and other of their ilk as, you know, being adversaries and being very dangerous to Americans, Afghans and coalition members inside Afghanistan, but we are not shutting the door on trying to determine whether there is some path forward,” Clinton said when asked whether she believed members of the Haqqani network might reconcile with the Afghan government.”It’s too soon to tell whether any of these groups or any individuals within them are serious,” she said in an interview with Reuters.Inclusion of the Haqqani network in a hoped-for peace deal — now a chief objective in the Obama administration’s Afghanistan policy after a decade of war — is a controversial idea in Washington.Officials blame the group for last month’s attack on the U.S. embassy in Kabul and a truck bombing that injured scores of American soldiers.The State Department is facing heat from Capitol Hill for refraining, at least so far, from officially designating the Haqqani group, which U.S. officials say is based in western Pakistan, as a terrorist organization.The White House has backed away from assertions from Admiral Mike Mullen, who was the top U.S. military officer until he retired last month, that Pakistani intelligence supported the Haqqani network in the September 13 embassy attack.But President Barack Obama and others have put their sometimes-ally Pakistan on notice that it must crack down on militants or risk severing a key relationship.According to media reports, U.S. officials have held meetings with Haqqani network representatives as part of their efforts — which have not yet yielded any visible results — to strike a peace deal, but the State Department declines to discuss details of the reconciliation process.In recent months reconciliation has become a more prominent feature of Obama’s Afghan strategy even as U.S. and NATO soldiers continued to battle the Taliban and Haqqani militants in Afghanistan’s volatile south and east.Earlier this year, Clinton advanced a peace deal as a key plank of regional policy for the first time, saying Washington would support a settlement between the Afghan government and those militant groups that meet certain requirements, including renouncing violence and supporting the Afghan constitution.FIGHTING, TALKINGDespite the conciliatory signals, Clinton said the United States would stick to its military campaign that the White House hopes will make militants more likely to enter serious negotiations.”Now, it is also true that we are still trying to kill and capture or neutralize them (the Haqqani network),” Clinton said. “And they are still trying to, you know, kill as many Americans, Afghans and coalition members as they can.”“In many instances where there is an ongoing conflict, you are fighting and looking to talk,” Clinton said. “And then eventually maybe you are fighting and talking. And then maybe you’ve got a ceasefire. And then maybe you are just talking.”It is unclear how quickly a peace deal could be had, as it remains unclear how military commanders can achieve and defend security improvements as the foreign force in Afghanistan gradually grows smaller.While parts of the Taliban’s southern heartland are safer than they were, Obama will be withdrawing the extra troops he sent to Afghanistan in 2010 just as commanders’ focus turns to the rugged eastern regions where the Haqqani group are believed to operate.Clinton did not directly address the question of designating the Haqqani network as a ‘foreign terrorist organization,’ but suggested the United States would want to keep its options open as it seeks peace in a region known for historic merry-go-round of political and military alliances.”It’s always difficult in this stage of a conflict, as you think through what is the resolution you are seeking and how do you best obtain it, to really know where you’ll be in two months, four months, six months,” Clinton said.”We are going to support the Afghans and they want to continue to see whether there is any way forward or whether you can see some of the groups or their leaders willing to break with others.”

Tech wrap: BlackBerry problems hit four continents

Wed, 12 Oct 2011 03:50:36 -0400

Disruptions to BlackBerry services spread to Latin America on Tuesday, more than a day after users in Europe, the Middle East, Africa and India suffered extended outages. BlackBerry maker Research In Motion Ltd, which is losing share of the corporate email market it once took for granted, said it was working on the problem but gave no details of the cause. Adding to RIM’s woes, a growing mass of its investors backs calls for a sale or break-up of the company and wants a new, “transformational leader” at its helm, according to a shareholder leading the drive for change. Business-software company Box has won $81 million in funding to expand its business, illustrating investors’ continued appreciation for start-up companies that tap into the cloud. Social games company Zynga is releasing 10 new products including a bingo game and a lineup of casino-themed games, its chief executive Mark Pincus said.