Manufacturing in India and China improved in December, a sign the world
A long-awaited government report said design flaws and sloppy management caused a bullet train crash in July that killed 40 people and triggered a public outcry over the high cost and dangers of China’s showcase transportation system.
A former railway minister was among 54 officials found responsible for the crash, a Cabinet statement said Wednesday.
The crash report was highly anticipated by the public. Regulations required the government to release the report by Nov. 20. When that date passed, the government offered little explanation, drawing renewed criticism by state media, which have been unusually skeptical about the handling of the accident and the investigation.
The Cabinet statement cited “serious design flaws and major safety risks” and what it said were a string of errors in equipment procurement and management.
The report affirmed earlier government statements that a lightning strike caused one bullet train to stall and a sensor failure allowed a second train to keep moving on the same track and slam into it.
Among those singled out for blame was former Minister of Railways Liu Zhijun, who was the public face of efforts to build the bullet train and was detained in February amid a graft investigation. The Cabinet also cited the general manager of the company that manufactured the signal, who died of a heart attack while talking to investigators in August.
As Wall Street traders cheered positive jobs data on Thursday, they seemed to ignore layoffs and bonus cuts on their own trading floors that will hurt growth in the broader U.S. jobs market in the coming months, TrimTabs Chief Executive Charles Biderman said.
U.S. jobless claims dropped to a 3 1/2-year low last week, the Labor Department said on Thursday morning, sending major stock indexes higher. But more current indicators for jobs and wages show opposite trends, said Biderman, a Wall Street veteran who founded the investment research firm in 1990.
“The conventional wisdom on Wall Street is that the U.S. economy is picking up steam despite the turmoil in the rest of the world,” Biderman Said. “The key real-time indicators we track - wage and salary growth and online job demand - suggest Wall Street is wrong.”
In contrast to the positive jobless claims figure, a TrimTabs index showed that a rise in online job postings has slowed over the past month . The firm’s pay analysis showed that wages have fallen 1.2 percent over the past month, adjusting for taxes and inflation, a bigger drop than the 0.2 percent decline over the past three months.
Job cuts at big Wall Street banks including Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz), Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and Bank of America-Merrill Lynch (BAC make quick cash.N: Quote, Profile, Research, Stock Buzz) will only hurt job growth further , Biderman said, while dwindling bonus pools will add pressure to wage growth.
Large U.S. banks have outlined plans to lay off nearly 40,000 employees so far this year as a result of the European sovereign debt crisis and weak economic growth, according to a Reuters tally.
Reports from compensation consultants such as Johnson Associates and Options Group suggest that Wall Street bonuses may decline as much as 30 percent to 40 percent this year. That will only hurt U.S. wage growth more in the weeks ahead, Biderman said, since bonuses are typically paid from late December through early February.
The earnings report from Jefferies Group Inc (JEF.N: Quote, Profile, Research, Stock Buzz) on Tuesday may offer clues to broader Wall Street trends. Jefferies’ fiscal year ends November 30, a month earlier than those of bigger rivals like Goldman and Morgan Stanley.
The investment bank laid off roughly 70 people in equities trading and cut overall compensation and benefits 24 percent during its fourth quarter. Chief Executive Rich Handler and a number of other senior executives also agreed to forgo bonuses for 2011.
“We recognize our shareholders had a tough year,” Handler said. “We’re shareholders and we’re getting zero bonus.”
Your phone bill can soar because of roaming charges when you take your mobile device with you on a trip.
Premium text message charges can also inflate your costs, especially if you don
NEW YORK
Doubts about China’s breakneck plans to expand high-speed rail across the country have been underscored by a bullet train wreck that killed at least 36 people.
Railways Minister Sheng Guangzu has already apologized to the victims of Saturday’s crash, and their families. A train rammed into the back of another one that stalled after being hit by lightning in China’s deadliest rail accident since 2008. Six carriages derailed and four fell about 65 to 100 feet (20 to 30 meters) from a viaduct.
The Railway Ministry and government officials haven’t explained why the second train was not warned there was a stalled train in its path.
The accident is the latest blow to China’s bullet train ambitions. Designed to show off the country’s rising wealth and technological prowess, the national prestige attached to the high-speed rail project is on a par with China’s space program.
Beijing plans to expand the high-speed rail network _ already the world’s biggest _ to link far-flung regions and is also trying to sell its trains to Latin America and the Middle East.
Last month, it launched to great fanfare the Beijing to Shanghai high-speed line, whose trains can travel at a top speed of 186 miles (300 kilometers) per hour. The speed was cut from the originally planned 217 mph (350 kph) after questions were raised about safety.
In less than four weeks of operation, power outages and other malfunctions have plagued the showcase 820-mile (1,318-kilometer) line. The Railways Ministry previously apologized for the problems and said that summer thunderstorms and winds were the cause in some cases.
Official plans call for China’s bullet train network to expand to 8,000 miles (13,000 kilometers) of track this year and 10,000 miles (16,000 kilometers) by 2020.
China’s trains are based on Japanese, French and German technology, but the manufacturers are trying to sell to Latin America and the Middle East. That has prompted complaints that Beijing is violating the spirit of licenses with foreign providers by reselling technology that was meant to be used only in China.
Saturday’s accident involved the first-generation bullet trains, which were launched in 2007 and have a top speed of 155 miles (250 kilometers) per hour _ slower than the new Beijing to Shanghai trains.
The Ministry of Railways said in a statement on its website Monday that the accident had killed 36 people and injured 192 direct payday lenders.
The crash happened when a bullet train traveling south from the Zhejiang provincial capital of Hangzhou lost power in a lightning strike, stalled and was hit from behind by a second train in Wenzhou city.
Three top officials at the Shanghai Railway Bureau were sacked after the accident, and state-controlled media have raised questions, especially as rail travel moves hundreds of millions of people a year.
In an editorial entitled ‘Train crash lesson for railway progress,’ the Global Times said the accident should be “a bloody lesson for the entire railway industry in China.”
The newspaper said the collision casts doubt on China’s high-speed railway expansion plans because the country “lacks experience” as it seeks to join the top ranks of railway engineering.
It said China’s high-speed railway has become “the newest target of public criticism,” adding the accident should lead to “safer, not slower, railway transportation.”
China’s transportation authority ordered local departments at an emergency meeting Sunday to launch thorough safety overhauls to “resolutely curb” severe traffic accidents, the official Xinhua News Agency reported. The order follows a number of recent accidents, including a fire on a long-distance bus on Friday that killed 41 people.
The China Daily said in an editorial that the rapid development of China’s high-speed network has eased travel for passengers, but safety worries could keep them off high-speed trains.
This is because “the higher the speed of the trains, the more sophisticated the technology will be and the greater the risk if there is a failure of any link in the safety chain,” it said.
The paper called for better training of railway employees and efforts to make sure the railways are not vulnerable to extreme weather conditions.
State broadcaster CCTV reported Monday that a 2-year-old girl pulled from one of the derailed carriages 21 hours after the crash had undergone a three-hour operation. It said she had suffered lung, kidney and leg injuries and is now in intensive care. Her parents died in the crash.
In April 2008,a regular-speed train traveling from Beijing to the eastern coastal city of Qingdao derailed and crashed into another train, killing 72 people and injuring 416.
LONDON—James Murdoch scaled the rungs of the global media empire that his father built. Now scandal taints the heir apparent, threatening to derail the expected succession and shaking the assumption that the Murdoch dynasty would preserve its tight grip over the multibillion-dollar business.
Founder Rupert Murdoch, 80, has long expressed a wish to hand his publicly traded News Corp. to his offspring, and he retains the voting power to make key decisions. But shareholders and board members are said to be troubled by revelations of wrongdoing on Murdoch’s watch, and feel the U.S.-based company needs fresh leadership.
Bloomberg News is reporting that two anonymous sources within News Corp. “have begun questioning the company’s response to the crisis and whether a leadership change is needed.”
Shares in News Corp. tumbled Monday to $14.98, down 13 per cent since July 4 — the day the Guardian newspaper reported that News of the World journalists had hacked into the voicemail belonging to murdered schoolgirl Milly Dowler.
A pivotal moment for the Murdoch family comes Tuesday when the media mogul and his son testify before British lawmakers investigating the hacking and alleged police bribery at a now-shuttered tabloid, News of the World.
“The future is looking increasingly grey” for James Murdoch, said Ivor Gaber, professor of political journalism at City University London. “There are now investors, particularly in the United States, who are suggesting that the time has come to end the Murdochs’ dynastic hold on News Corp.”
Some analysts believe Murdoch is positioning 42-year-old daughter Elisabeth as a successor in the event that 38-year-old James, chief executive of his father’s European and Asian operations, is forced to step aside or faces arrest.
“At the end of the day, that’s what made it a success. It’s ‘Brand Murdoch,’” said Richard Hillgrove, a London-based public relations consultant and former commentator for Murdoch-owned newspapers in New Zealand. “He’s going to do anything in his power to make sure it stays that way.”
Hillgrove described Elisabeth Murdoch, who is expected to join the board of News Corp. in October, as the “likely contender” for leadership of the company and noted that she appears “untainted and pretty clean” in comparison to the pressure bearing down on her brother, James.
There have been unconfirmed reports in the British media of family tension and dissatisfaction on the part of Elisabeth with how the company has been run; some observers speculate people close to the family have leaked information to elevate her stature.
However, a suit in the United States has questioned News Corp.’s move in February to buy Shine Group., the television production company founded in Britain by Elisabeth, in a $670 million deal viewed by some shareholders as overpriced and fueled by nepotism. And while the company is successful, Elisabeth lacks experience at the highest levels of international management.
Another Murdoch son, 39-year-old Lachlan, is on the board of News Corp., but he quit a high-level position in the company in 2005 and does not have a management role. He is saddled in part by the legacy of a failed investment in an Australian telecoms company a decade ago.
Chase Carey, the American deputy chairman and president of News Corp., could step in to head the group as an option from outside the family. He previously worked with Fox television, a company holding.
Murdoch crafted a behemoth over the decades, acquiring newspaper, television, publishing and entertainment interests in Asia, Europe, the United States and Latin America. New York-based News Corp., which employs more than 50,000 people, said it had total assets as of March of $60 billion, and total annual revenues of $33 billion, though the scandal has pushed down share prices.
In 2001, a former wife of Rupert Murdoch predicted that there would be heartache among her children — James, Lachlan and Elisabeth — when the time came to choose his successor. At the time, Anna Murdoch Mann told the Australian Women’s Weekly magazine that she would prefer that none of her children took the reins.
“I think they’re all so good that they could do whatever they wanted, really,” she said. “But I think there’s going to be a lot of heartbreak and hardship with this. There’s been such a lot of pressure that they needn’t have had at their age.”
The accusations of phone hacking and police bribery by journalists at the News of the World reached into the elder Murdoch’s inner circle with the arrest Sunday of Rebekah Brooks, former head of his British newspaper unit.
James Murdoch did not directly oversee News of the World, where the phone hacking of celebrities and others allegedly occurred, but he approved payments to some of the paper’s most prominent hacking victims, including 700,000 pounds ($1.1 million) to Professional Footballers’ Association chief Gordon Taylor.
He said he “did not have a complete picture” when he approved the payouts. Still, commentators view his position as fragile because of questions about whether the criminal investigation will go higher up the chain of command at News Corp. Additionally, the company could be liable under the U.S. Foreign Corrupt Practices Act, which bars American companies from bribing foreign officials for business.
Journalists at the News of the World hacked the voice mail of mobile telephones in an attempt to get information for stories that would help sell newspapers, and allegedly paid police for information that could also be used in the production of news reports.
Louise Cooper, an analyst in the London office of the brokerage BGC Partners, described years of speculation about who would take control after Rupert Murdoch as a perpetual process of “one’s up, another one’s down” that focuses on the tycoon’s children. In the end, she said, it is the patriarch’s decision.
“He still has absolute control over that company,” Cooper said. She said that barring further revelations about the involvement of James Murdoch in the scandal, “it’s difficult to write him off completely.”
Rupert Murdoch controls News Corp. through a family trust that holds 40 per cent of the company’s Class B voting shares. The succession question has centred on James, Elisabeth and Lachlan, children by Murdoch’s second marriage to Anna Torv, later Anna Murdoch Mann after she remarried.
Elisabeth is married to prominent British public relations executive Matthew Freud. She resigned as managing director of British Sky Broadcasting, a lucrative satellite broadcaster in which News Corp. is the biggest shareholder, in 2000 to go her own way. This month, Murdoch dropped a bid to take full control of BSkyB in response to the uproar over phone hacking.
Lachlan Murdoch, once seen as the heir apparent, had been elevated to deputy chief operating officer of News Corp. by the time he quit in 2005 to go back to Australia.
That left James as the expected heir. He has been chairman and CEO of the company’s European and Asian operations since 2007, and later became deputy chief operating officer of News Corp.
Rupert Murdoch has another daughter, Prudence, from his first marriage to Patricia Booker; she is married to Alasdair MacLeod, who stepped down last year after 20 years as a News Corp. executive, most recently as managing director of the Australian newspapers.
Murdoch also has two daughters, 9-year-old Grace and 7-year-old Chloe, with his third wife, Wendi Deng. She was a junior News Corp. executive in Hong Kong before marrying Murdoch in 1999 at the age of 32. Her name has occasionally cropped up in succession speculation in the past.
Falling gas prices brought truck buyers back to General Motors showrooms last month. Still, pump prices remained high enough that shoppers snapped up smaller cars as well.
GM sales rose 10 percent in June from a year ago. The Detroit car company said it sold 215,000 cars and trucks last month, up from 194,828 a year ago. The result indicates the auto industry’s slow recovery from the recession is back on track after a brief slump in May.
GM said that cheaper gas lured more pickup truck buyers with Chevrolet Silverado sales rising 5 percent and GMC Sierra sales up 8 percent compared with a year earlier. Any jump in pickup sales helps GM and other Detroit automakers, which sell more than five times as many pickups as foreign-based brands.
Still, GM’s sales were led by smaller, more fuel-efficient models like the new Chevrolet Cruze compact. Gas prices averaged $3.68 per gallon in June. That’s cheaper than the average for May, but hardly cheap. Sales of the Cruze more than doubled the sales of the car it replaced, the lackluster Chevrolet Cobalt.
GM’s small-car and crossover sales also got a boost from earthquake-related shortages of Japanese models that persisted through June.
GM is the first major car company to report U.S. sales on Wednesday. Earlier, Volkswagen of America Inc. said its U.S. sales rose 35 percent in June on strong demand for its Jetta midsize sedan and other models. Industry analysts expect overall U.S. sales to rise 13.5 percent from last June.
Even with sales rebounding in June, GM backed off a bit from its sales forecast for the year payday loans online. Don Johnson, vice president of U.S. sales, said he now expects the total sales to be at the low end of the company’s previous prediction of 13 million to 13.5 million vehicles.
Johnson blamed the change on stubbornly high unemployment, which contributed to the decline in May. Total U.S. sales fell 3.7 percent in May after a string of double-digit monthly increases.
Johnson sees the slow recovery continuing through the rest of the year. He said that even with unemployment around 9 percent, 91 percent of the country is still working, and many are driving older cars.
“There are still people out there looking for a vehicle and in many cases need to replace their vehicles,” Johnson said.
The average car on the road now is 10.6 years old, according to the Polk research firm.
Automakers expect to sell around 1.1 million cars and trucks in June. That’s up 5 percent from May, when parts shortages caused by the March earthquake in Japan, $4-per-gallon gas and a lack of deals caused a slump.
But the pace of sales has slowed from the beginning of this year. Like GM, some analysts are starting to question the strength of the recovery. J.D. Power and Associates lowered its full-year sales forecast from 13 million vehicles to 12.9 million, saying the sluggish economy could take a bite out of sales even if car shortages ease by this fall.
A unique initiative to improve labour relations at auto parts giant Magna International is fizzling.
Aurora-based Magna and the Canadian Auto Workers say they continue talking about expanding the
Germany has reported another three deaths in its E. coli outbreak _ bringing the total to at least 47.
The Robert Koch Institute, Germany’s disease control center, said Monday that 46 deaths have now been reported in the country. One person has died in Sweden, and officials say one death in the U.S. may be linked to the outbreak.
The number of new infections has declined significantly over recent weeks but overall numbers are still rising _ due largely to delays in notification guaranteed payday loans.
The disease control center says 3,801 people have been reported sick in Germany. That includes 834 suffering from a complication that can lead to kidney failure.
A further 119 cases have been reported in 15 other countries.
The source has been traced to a sprout farm in northern Germany. It’s unclear how the sprouts were contaminated.
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