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Friday, January 28, 2005

New York —American manufacturing giant Proctor & Gamble (P&G) plans to acquire Gillette Co. for US$57 billion in stock. The purchase plan calls for P&G to swap 0.975 shares of its stock per share of Gillete Co. P&G also announced a stock buyback program in which they would purchase up to US$22 billion of shares over the next 18 months. Including the stock buyback program, the merger is being financed by 60 percent stock and 40 percent cash.

P&G is known for brands such as Ariel and Tide washing powder, Max Factor cosmetics, Pringles potato crisps (chips) and Hugo Boss and Lacoste perfumes.

Gillette, known for brands such as Gillette razors, Oral B dental care, and Duracell batteries, has had growing problems with the growth of private labels and price cuts demanded by large supermarkets.

After the acquisition is completed, Gillette’s CEO James Kilts will be P&G’s vice-chairman. Kilts said that he expects that this acquisition will cause additional mergers to take place.

“I believe the consumer product industry needs to consolidate,” said Kilts, “we believe we can bring these companies together and create a juggernaut.”

P&G and Gillette have a combined market capitalization of about $185 billion US, which will make it the largest in the sector.

The early morning announcement states that 6,000 employees will be eliminated. Most of the layoffs will result from reducing overlapping management positions and other supporting positions within the combined company.

Antitrust regulators in the US and Europe plan to review the acquisition, to determine whether the combined company will have too much power over pricing and shelf space.

P&G plans to provide additional details about the merger Friday morning (East Coast time) in New York.

Saturday, March 14, 2009

Investigators with the National Transportation Safety Board in the United States have issued an ‘urgent safety recommendation’ in connection to their role alongside the United Kingdom’s Air Accidents Investigation Branch in investigating loss of power in Rolls-Royce engines on Boeing 777s, with the AAIB following suit. One of them resulted in British Airways Flight 38 crashing short of the runway at London’s Heathrow Airport last year. The NTSB and the AAIB want Rolls-Royce to redesign the engines.

Both events occurred on Boeing 777-200ER airplanes powered by Rolls-Royce RB211 Trent 800 Series engines. On January 17, 2008 British Airways Flight 38 experienced a dual engine rollback (reduction of engine power) on final approach to Heathrow and crashed, leaving one passenger seriously injured, eight passengers and four of the flight crew with minor injuries and the airplane written off.

The second event occurred on November 26, 2008, when a Delta Air Lines Boeing 777 experienced a single engine rollback during cruise flight over Montana, United States while en route from Shanghai to Atlanta. Normal operations resumed after the flight crew followed Boeing’s published procedure to recover engine performance and the airplane landed safely in Atlanta.

Boeing has already developed new procedures after the crash to prevent ice from building up within their 777 fuel systems after it became apparent that icing may have been a factor, and it was some of these that the Delta flight crew had followed. Boeing modified these further after the Delta incident. As part of the recent releases by the NTSB and AAIB it has become apparent that investigators from both bodies, which are collaborating, have found ice buildup in the fuel system caused both rollbacks.

In both cases a build-up of ice (from water normally present in all jet fuel) developed on a component called the fuel/oil heat exchanger. This restricted the flow of fuel to the engine, resulting in the uncommanded engine rollback. Investigators initially struggled to produce enough ice under test conditions but have now found that at high concentration, fuel can form ice at very low temperatures in enough quantity to seriously restrict fuel flow, according to a new interim report by the AAIB. This does not occur when fuel demand is lower, as the hot oil then becomes sufficient to entirely melt the ice. The British jet experienced very low temperatures over Siberia.

The vigorous tests are thought to be the first of their kind. They have also confirmed that while ice may have formed elsewhere in the airliner’s fuel system fuel was probably not restricted at any other location. Instead, it is thought ‘soft’ ice formed in the pipes and then broke off, travelling to the fuel/oil heat exchanger and restricting it.

The NTSB has now revealed that they have advised Rolls-Royce to redesign the fuel/oil heat exchanger, and Rolls-Royce have stated that they are indeed working on a replacement part that will be available within twelve months. The AAIB advised Boeing and Rolls-Royce to jointly review the problem across the fuel system, and both companies responded that they ‘accepted’ this recommendation and repeated that a replacement part was being developed.

Both the NTSB and the AAIB also sent letters to the US Federal Aviation Administration and the European Aviation Safety Agency requesting the installment of the modified component be mandatory. The NTSB suggested this should be either the next maintenance check or within six months. There are 220 Boeing 777-200s – the only type using the affected engine – with Trent 800 series engines.

The fuel/oil heat exchanger is a dual purpose part designed to simultaneously melt fuel ice and cool down engine oil.

The AAIB further noted that it is unclear weather other aircraft designs are at risk, and advised the FAA and EASA to look into increased use of de-icing additives and investigate both the accumulation and sudden movement of ice in aircraft fuel systems and the actual formation of ice in the fuel itself.

Friday, May 12, 2006

Peter Costello’s budget announcement has led to rejoicing for small businesses, but the lack of joy for those pushing for radical corporate taxation reform has led to many businesses asking “what about us?”

Personal taxation and small business have been the big winners after this year’s federal budget. Although dampened by the twin economic threats of rising interest rates and petrol prices, there should be a reasonable amount of real income savings for both low and high income earners, with those receiving Medicare, or a superannuation benefit, privy to an even lower level of taxation (0% for those on super benefits).

Small business also has benefited from the Howard government’s 11th annual budget, with them receiving a higher level of reducing depreciation, leading to a higher level of deductions in the years following the uptake of new technology or other capital. They are also privy to a AU$435 million dollar tax cut to compensate for their changing accounting requirements under the government’s new AIFRS reporting standards, as well as increasing the uptake of both the small business tax relief scheme and CGT (Capital Gains tax) Concessions.

The budget was not a complete loss for big business however, as superannuation laws have been tweaked to streamline contribution and payment rules previously impeding those with multitudes of staff.

But this is not enough, says Big 4 accounting firm Ernst & Young. In their newly published paper “Taxation of Investment in Australia: the need for ongoing reform”. In it they lead the charge for a greater streamlining and organization of the corporate tax system in Australia, submitting that it will lead to reductions in “disincentives to work save and invest in Australia [as well as improving] the international competitiveness of Australian businesses.” This follows from a recent report brought out by Mr. Costello himself about the need for tax reform in Australia.

A budget night Mr. Costello was notably coy about any future reform of corporate tax in Australia. He alluded to the report by his ministers but kept from outlining the government’s plan precisely.

Monday, October 11, 2010

Wikinews interviewed author Amy Scobee about her book Scientology – Abuse at the Top, and asked her about her experiences working as an executive within the organization. Scobee joined the organization at age 14, and worked at Scientology’s international management headquarters for several years before leaving in 2005. She served as a Scientology executive in multiple high-ranking positions, working out of the international headquarters of Scientology known as “Gold Base”, located in Gilman Hot Springs near Hemet, California.

Saturday, August 20, 2005

A power outage in Indonesia that left about 100 million people without electricity has caused a political crisis. The country’s state-owned energy monopoly, PLN, has not determined the immediate cause, and the country’s president has ordered the national intelligence agency and police to investigate.

The blackout appears related to deficiencies in Indonesia’s power generation capacity.

The power failure follows attempts to deal with the country’s growing energy crisis, including conservation and trying to allow private companies to provide energy, which was ruled unconstitutional in 2004. In January, the Indonesian government held a special energy summit to attract investment in their energy infrastructure. At the summit they set the goal of adding 22,000 megawatts to Indonesia’s present capacity of 23,000 megawatts, in order to support the country’s growth.

The World Bank and others have warned that without more investment in the country’s energy infrastructure an energy deficit will result. However, foreign investors remain wary of investing in Indonesia. “The power outage has resulted in worries over an energy crisis which could hurt the nation’s industrial sector,” said a trader on Indonesia’s stock market.[1]

The outage began at 10:23 a.m. local time, August 18, 2005, when power failed along the electrical system that connects Java, Bali, and Madura, causing outages in Java and Bali. Almost half of the country depends on the electrical grid that experienced failures. Some of the main lines on the grid are over 20 years old, according to PLN president Eddie Widiono.

The blackout caused traffic jams in Jakarta, forced cancellation of several international and domestic flights at Jakarta’s Soekarno-Hatta International Airport, shut down Jakarta’s electric train service, and disrupted hospital operations. Some larger hospitals were forced to delay surgeries while many smaller hospitals could not receive patients. About 1,800 officers were called into action by Jakarta’s metropolitan police to deal with short-term problems caused by the power failure.

Candles used in place of electric lighting started six fires in Jakarta alone.

Mulyo Aji, a PLN official, said more power failures are likely in the future as energy demand increases, without any corresponding new supplies of electricity scheduled to come online soon.

Saturday, October 31, 2009

A man has been given a prison sentence of nine years for the manslaughter of his wife in Hampshire, England. 40-year-old Sally Sinclair was head of business analysis for mobile phone provider Vodafone and had been killed in August 2008 in her home in the village of Amport, after admitting to her husband that she had had an affair. When her body was found in the kitchen of the house, it was discovered that she had suffered a partially severed head and at least 40 stab wounds. Winchester Crown Court had heard during the trial that the attack was partly witnessed by children.

Alisdair Sinclair, who is 48 years old and caused the attack, was cleared of charges of murder, but was sentenced to nine years in prison for charges of manslaughter. Judge Guy Boney QC has been quoted as saying: “Your wife did everything she could to support and help you and indulge your eccentricities, including spending £100,000 (US$164,470) on three cars of the same model you hardly ever used.

“She wanted to make the marriage work and save it from collapse. These efforts cost her her life. Sally Sinclair appears to have coped with, and tolerated, your behaviour over a long period. When she could not take any more of your behaviour you exploded in a frenzy of brutality in reaction to certain information you forced out of her.”

Speaking about the case, Detective Sergeant Sarah Simpson from Hampshire Constabulary said outside of the courtroom: “A successful career woman had her life tragically and prematurely cut short and her family now have to lead their lives without her. Nothing can ever compensate for that.”

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.