Coming off a quarterly earnings report that pleased investors even as revenues fell, Hewlett-Packard’s chief executive, Meg Whitman, said in an interview with CNBC that “we feel good about where we are.” … Read More
‘Cameron wants to kick EU exit issue into long grass’ – UKIP leader
With a lot of hard feeling swirling around the EU, one thing many seem agreed on is anger at Brussels. Nine European countries are now in recession and, with no end to austerity in sight, EU membership appears to be more trouble than its worth for some. The leader of the Euroskeptical UKIP party, Nigel Farage, says recent research show that by participating in the EU, Britain is annually losing more than £100 billion due to membership fees and the Union’s regulations. RT: Support for your cause is growing, and as our Berlin correspondent reported, the UK’s EU cousins don’t mind Britain leaving. So who wants the UK to stay?Nigel Farage: Germany wants the UK to stay – because Germany thinks that if the UK leaves the whole thing will unravel. And if it unravels, including the Eurozone, than the Germans will have some very big losses. And also, you know, the Germans are the ones that have benefited out of the Eurozone. Most of their growth over the last four, five or six years has been to the cost of other Eurozone countries. So the Germans – very very keen to keep Britain in.RT: There are repeated warnings that foreign investors are being put off by the uncertainty. Does Britain fully understand the possible ramifications of the exit from the EU?NF: Well, what would’ve been really damaging to the UK is if we’d been stupid enough to join the Eurozone. Thank goodness, we said ‘no.’ Otherwise we’d in a similar state to many of the Mediterranean countries today. That was the first big good decision that we’ve made. Now I do understand the argument about uncertainty, even though I very much take the view that trade would go on between Britain and the rest of Europe completely unaffected by us leaving the political union. After all, the European countries sell far more goods to us than we do to them. But I do understand that anything where you’re told there could be a four-and-a-half, perhaps a five-year debate on the subject could lead to uncertainty. All of which really reinforces my view that what [British PM, David] Cameron has done here is to attempt to kick this issue off into the long grass. And really we’ve got a have a referendum to sort this issue before the next general election. RT: Instead of keeping one hand on the exit, why aren’t Euro MPs like yourself taking more advantage of trying to change things from within Brussels?NF: Oh, goodness me, if we try to reform this thing from within I’d need to live to 300 to have much chance. Listen, the interesting thing is that in response to the Eurozone crisis really almost everybody inside the EU – rather than saying let’s reform things, let’s change things, let’s accept this model isn’t really working – they’ve done the opposite. They’re saying: ‘Oh, goodness me, we must have more Europe, more integration, we must take yet more democracy away from member states. Nobody, but nobody, inside these institutions is talking about reform in the same terms as the UK debate and Mr Cameron are. They are two completely different things. RT: Britain’s membership is estimated to be worth between £31 and 92 billion pounds per year in income gains according to business leaders – what would that be replaced with? NF: There are some business figures, many of whom have already got knighthoods or peerages, worth noting that and people, who are heads of giant multinational companies. And they’ve got businesses in Europe, and they’ve also got big businesses in Europe. And I can see the argument that if you’re multinational the EU way of making law is to your benefit because it puts out of business all of your small and medium-size competitors. So, I understand that. But the idea that because we’re members of the political union, because we’ve surrendered our democracy means that other countries in Europe will do business with us is nonsense. We do business all over the world without being in a political union with anybody else. And far from it being a big benefit to the British economy there are many other people – right through from the Institute of Directors, through some recent analysis from professor Tim Compton, one of the government’s former wise men, saying actually this is costing us, some say, more than £100 billion per year to be in, with membership fees and the regulation, which the British government would never ever choose. … Read More
E.On Russia to transfer 100% of 2012’s net profit into dividends
The company has recommended a dividend of 0.29 roubles per share for 2012, worth 18.3 billion roubles ($583 million), General Director Maxim Shirokov said on Friday.E.On Russia also plans to pay its shareholders 40-60 percent of its earnings under IFRS international accounting standards over the medium-term.According to Kommersant daily, German E.On needs money to compensate for the losses the company suffered after the German authorities pledged to turn their back on nuclear energy in favor of green energy. E.On is terminating the operation of the nuclear power plant it owns.The growing share of renewable energy sources and weak demand from industry have significantly reduced the profitability of the German company’s gas division.E.ON Russia’s payment of dividends will become the first time when foreign investors will get dividends from assets purchased during the split of RAO UES of Russia. Several Russian energy producers can boast dividends exceeding 1 billion roubles ($32 million). Others include RusHydro and Mosenergo. The Russian subsidiary of the German company has increased its energy production by 2.78 percent in 2012, according to the Finam business news agency. The increase is mainly due to the expansion of the Surgutskaya GRES-2 power plant – the largest power station in Russia. Two new 400MW units were commissioned to meet the energy requirements of the city of Surgut and Western Siberia, and have increased the existing capacity of the power station by 800MW, to 5,600MW. Investment in the expansion project is estimated at €2.8 billion.E.ON is the largest buyer of Russian gas and also the largest foreign investor in Russia. The expansion programme is part of the company’s investment programme aimed at increasing the clean energy production to 2,400MW.Total power generating capacity of E.ON Russia exceeds one billion watts. The company includes five hydroelectric power plants (Surgutskaya GRES-2, Berezovskaya GRES, Shaturskaya GRES, Smolenskaya GRES and Yajvinskaya GRES) and «Heat networks of Berezovskaya GRES», delivering energy to consumers in the region surrounding the plant. … Read More
Rosbank CEO charged with extortion
Investigators announced they have opened an official criminal case against Vladimir Golubkov and his senior VP Tamara Polyanitsyna.The video footage shows armed police forcefully entering the bank, jumping counters and cornering Golubkov in his office. He stood behind his desk, which had several piles of 5,000 rouble ($150) notes stacked on it.The investigators said the cash totaled 5 million roubles ($160,000), and the video shows the banknotes carefully laid out across the desk.”Golubkov demanded, via his subordinate Polyanitsyna, more than $1 million from a businessman to extend the maturity and reduce the interest rate on a multi-million dollar loan,” the Investigative Committee alleges.Golubkov’s lawyer, Dmitry Kharitonov, claimed his client is innocent: “He is being held for 48 hours by the Investigative Committee and faces up to seven years if convicted,” Kharitonov said.According to various media reports on Thursday, an executive at a car dealership informed on Golubkov after he paid several instalments of a bribe to restructure an $80 million loan.Many western banks have already packed up and left the Russian market, dominated by state giants VTB and Sberbank. Foreign banks have complained about a lack of competition and an even playing field, and the recent corruption probe could result in further retraction of international investors in Russia.47-year old Golubkov became CEO of Rosbank in 2008.Many bankers have voiced suspicions about the authenticity of the sting, and some have even suggested it was a set up.”I know him to be a good man,” Garegin Tosunyan, president of the Association of Russian Banks, told Reuters. “The accusations simply don’t fit – although the law enforcement authorities are entitled to their theory and to investigate.””If you ask me, it is unlikely that he would stoop to such commercial bribery. I hope that investigators will consider the possibility that he was deliberately set up.”Russian tycoon and a leader of the Civil Platform Party Mikhail Prokhorov also stuck up for Golubkov and signed a petition to the court not to arrest the man, giving his personal guarantees.“I know him very well. He has always been an honest and professional man, and I am sure he will not hide anywhere,” Prokhorov advocated. … Read More
Today’s Scuttlebot: Hidden Online Audiences and Cicada Math
The technology reporters and editors of The New York Times scour the Web for important and peculiar items. For Tuesday, selections include the job you can’t list any more on LinkedIn, an imaginary response from Bloomberg News about its scandal and technology investors financing coffee shops. … Read More
French company sells scented underwear for men
A company that specialises in “Made in France” underwear has raised nearly 19,000 euros ($25,000) from enthusiastic investors banking on its next titillating creation — sweet-smelling underpants for men. The so-called “Indomitable” briefs will be manufactured by…
‘Russia is ideal partner’ – Greek government spokesman
This year Greece is expected to end with a surplus, which is a sign that the country is moving in the right direction, Kedikoglou says. RT: 2012 was a momentous year for Greece. The country managed to keep the euro, and bankruptcy fears have receded. Is Greece over the worst of it?Simos Kedikoglou: Yes, Greece is over the worst of it, but the crisis is not over yet. We still have a lot to do. When the government came to power last June the climate was very negative. I would say we were practically out of the eurozone, but we managed to win the first battle – the battle for the eurozone. Now we have another battle, the battle against unemployment, which has risen to the levels nobody could imagine – 27 percent among the population and 60 percent among young people. At the beginning it was only austerity and nothing else. That didn’t work, that’s why we have the fourth consecutive year of recession, that’s why unemployment rose to these levels. The new program includes policies for development. We are using numerous tools to create jobs. The Greek economy desperately needs new ‘clean’ money, not loans. This can be achieved in two ways – by increasing exports and attracting investments. In both these ways Russia is an ideal partner. That’s the reason why here in Russia we’ve presented for the first time the new Greek investment law.RT: What is the new investment project about?SK: There are two significant things. On the highest level, I mean big investments, we have the so-called fast-track procedure. If anyone wants to invest 50 million euros or more in Greece we will guide the investor untill the fulfilment of his plans. We have certain procedures, which would help achieve that. For example all the necessary permissions will be given by one service. Investors won’t have to go through this marathon and labyrinth of bureaucratic procedures. On the lower levels there will be also something attractive especially for Russians. For instance, if a Russian buys a house in Greece above a certain level, which I believe will be around 200,000 euros, he and his family will be given a five-year visa, which will be renewed if he keeps the house.RT: Not everybody is happy about Greece building closer relations with Russia. Greece is expected to raise 15 billion euros in privatization and among other things looks into the possibility of selling natural gas assets to Russia. There are media reports that the US and the EU are advising the country not to do it. What do you make of that?SK: We are going to carry out the procedure according to the plan. The best offers will win and we are welcoming the two Russian companies that have made their bids, which, as far as I know, are very attractive. There are two main things that are important – the sum and the gas plan. You can understand that especially for an economy, which wants to get out of the crisis, it’s important to have the cheapest possible energy.RT: Did your country get any advice from the US and the EU?SK: The only advice came from articles in newspapers. I’m also a journalist and I know how some articles appear. In our case only the best offer will win.RT: Now it sounds like ‘No more austerity’ for Greece. Is that correct?SK: The Greeks have sacrificed much. The average income has fallen by 30 percent. We’ve had enough of austerity. We need development, which is as needed as air now. We were in a downward spiral and managed to stop it. By the summer we will have started to rise again. And this year, for the first time in 30 years, Greece will have a primary surplus. I think we are doing things right. It’s hard. We must help as soon as possible those categories of people, who need help. RT: Back in the 1990s, when the idea of the eurozone was being discussed, experts were saying that such countries as Italy and Greece aren’t ready to join it. Why do you think they were dragged in?SK: Well, it was the European dream. But I can’t understand why we insisted on creating the monetary union without advancing the political and economic union. How was that possible? Why did we do such a mistake? Not only Brussels is responsible but the whole EU. Right now the EU is facing a major challenge. It must change, it must learn the previous lessons and not repeat the mistakes of the past. We stay optimistic and believe that Europe will change in the correct direction.RT: Mistakes were made, you are absolutely right, but… SK: …will we stop making them? You have to ask quite a few politicians about that.RT: Will anybody be held responsible for those mistakes? The consequences are very tough and ordinary people are suffering.SK: There will be consequences for those, who made money out of this, but there won’t be any consequences for those who made wrong decisions. I believe the biggest punishment for a politician is what history writes about him. If we had advanced the political union along with the monetary union we wouldn’t have arrived at this point. But you won’t solve the problem with conditionals. What is the most urgent for us now is to make things better for people.RT: Is Greek society more united now?SK: We are living through a very difficult period. You know, unemployment is the best ally of extremists, which is why you see the rise of neo-fascists and political violence.RT: Is it a long-standing phenomenon?SK: No, it isn’t. I believe that if we manage to fight unemployment we will see political violence slow down. Desperation is the worst counsellor. We must bring hope back.RT: Your government has at least twice threatened to arrest striking workers. How is it possible?SK: There is a procedure in the Greek legal system that in certain occasions allows the government to order people to get down to work, for example, when you have a strike of well-paid people with monthly salaries over 3,000 euros, while most of the population are making ends meet with less than 1,000 euros per month. Those people, who don’t want to lose their privileges, are striking and paralyzing the whole city. In this case the government must force them to work. That’s what we did. We didn’t arrest anybody and didn’t threaten anyone. We enforced the law. Nobody can keep society hostage. That’s what we said and that’s what we did.RT: You are talking with huge respect about your European partners, but there is a scorn coming from some German politicians and media in relation to modern day Greece. Is Greece currently happy to live in the common European home?SK: Let’s see what kind of home we are building. Europe has to change. Last November our partners expressed solidarity. We were offered loans on possibly the best conditions in the world. Now we must do our job. We believe that we will end this year with a rise and everybody will know that we are on the right track. … Read More
