COMMENTS - 2013/01/13

WEEKLY BLOG COMMENTS – No.46

DATES: 2013/01/06– 2013/01/13

ANALYST: Domingo Trassens

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THEME: United States

Story: Obama to Speed Troop Exit

Subject: In a press conference together with Afghan President Karzai, President Barack Obama announced plans to speed the American troop exit from Afghanistan.

My Comment: The news says President Obama will accelerate the end of Afghanistan war because the goals have been reached. Is this really the reason? I believe no. Personally, I think the decision was pragmatic. It doesn't make sense to continue a costly war in human and financial resources when everybody has realized that the efforts to "evangelize" the Afghans are utopian. 2013/01/12) 4 Recommendations

Story: Hagel, Obama Forged Bond Over Iraq

My Comment: This story shows President Obama is paying Chuck Hagel a high price for the fast course in military issues that Mr. Hagel gave him during their overseas trip to Iraq and Afghanistan in the moment the Senator Barack Obama wanted to defeat Senator John McCain in the presidential campaign of 2008. (2013/01/11) 1 Recommendation

Story: Biden's Gun Push Draws NRA Ire

Subject: Vice President Biden began a series of meetings to push new legislation about the gun control due to the Newtown massacre.

My Comment: From my point of view the key issue is: mental health. The guns don’t walk alone to the crime scene. Will we prohibit driving cars because some crazy individuals kill others driving drunk or with mental problems? If really we want to arrive at a reasonable conclusion, we have to focus the core of the problem (Why somebody kills people? anger, wickedness, aversion, animosity, disgust, revenge, fun… The majority of the triggers are “psychological”).  (2013/01/11) 1 Recommendation

Story: Obama to Nominate Lew as Treasury Secretary

Subject: President Barack Obama nominated to Jacob (Jack) Lew, the Chief of Staff of the White House, as Treasury Secretary for his second term.   

My Comment: I read the biography of Jacob Lew, who was nominated by President Obama as Treasury Secretary. I agree that he will break the mold of recent Treasury chiefs. He is a lawyer who normally worked behind the scene in key positions of the government. He looks like a hard worker but without the background to lead as secretary an agenda with very difficult international negotiations. (2013/01/09) 1 Recommendation

Story: Obama Security Picks Court Controversy

Subject: The nomination of Chuck Hagel as new Secretary of Defense and John Brennan for CIA has generated a polemic in the political environment.

My Comment: It looks like President Barack Obama wants to have a new confrontation with Senate Republicans and maybe also with Democrats. The two new nominated for his second term – Chuck Hagel for Defense and John Brennan for CIA – know very well the ground where they have to work but they are very controversial personalities. If Congress approves their nominations, we will see important changes in our defense and security. (2013/01/08)

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THEME: Europe

Story: Greeks Raid Forests in Search of Wood to Heat Homes

Subject: Thousands of trees have disappeared from parks and woodlands this winter across Greece due to the impoverished residents cut them for heat because they cannot pay for electricity or fuel.

My Comment: During the economic crises, always the poor people suffer the drama when the coldness freezes children and parents and the nights are longer and endless. The politicians don’t need to chop down trees to heat their homes… (2013/01/12) 10 Recommendations

Story: Parallels With 1920s Raise Worries Over Extremism

Subject: Some observers say the current European crisis is similar to the 1920s. And they fears extremism movements can raise across the continent.

My Comment: The analysis of the European landscape drawing a parallel between the 1920s and today is interesting, but what do you want to suggest: a new war centered in Europe, massive social unrests, the disintegration of the Old Continent?

I agree that Europe is living in a serious crisis. However, if you compare this moment with the 1920s, now a new strong factor complicates the possible solutions.

Across Western Europe, a huge wave of immigrants from Eastern Europe, Middle East, the Asian Muslim countries and very poor African countries have generated a “human mosaic” that in a short or long time will change the “balance” because the children of these immigrants are also Europeans, but with a very different way of thinking and acting like the Europeans with roots in Italy, Germany, France, England or Spain. By the way, a lot of these children speak Arab or Russian better than English, German or French.

For all these new elements, if somebody pushes the extremism movements ahead, the consequences could be very different. We have to hope the current and future leaders think twice about their proposals (no more fanatic nationalism movements). (2013/01/11)

Story: Czech Freedom Rings Off-Key

My Comment: The massive New Year’s pardon of thousands of inmates signed by Czech President Vaclav Klaus looks like a crazy idea. After the fall of the Iron Curtain, a lot of tourists were robbed in Prague and across the Czech Republic. Also the indexes of criminality grew considerable in the borders of this small nation and the neighboring countries. Today is very easy to travel for one side to another in the European Community. More opportunities for the Czech robbers! (2013/01/10)

Story: Euro-Zone Unemployment Hits New High

Subject: According to different sources, the unemployment rate hits high across the European countries members of the euro-zone.

My Comment: We see every day when we read news from the majority of the countries of the euro-zone: the bankers are solving their problems, while the workers continue waiting in long lines of the unemployment agencies. (2013/01/09)

Story: Challenge for Merkel Foreshadowed in Regional Vote

Subject: This year, there are national elections in Germany. The first regional election campaign in the north of the country began with difficulties for Chancellor Angela Merkel due to the decline of the partner of the government coalition, the pro-business Free Democratic Party.

My Comment: The future of German Chancellor Angela Merkel is at risk. The Free Democrats - her coalition partners - are losing election after election. (2013/01/06)

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THEME: Asia, Middle East, Africa

Story: French Troops Intervene in Mali to Support Local Army – Part 1

Subject: French President François Hollande announced an important military operation in Mali to support the government of this country against rebel groups.

My Comment: France always has “humanitarian feelings” for its African friends, but this military operation will cost money. Who will pay the French soldiers now that the rich French tax payers are living out of the country? By the way, Mali has important mines of gold and uranium but its population lives on less than US$ 1.25 per day according to different sources. (2013/01/11) 3 Recommendations

Story: French Troops Intervene in Mali to Support Local Army – Part 2

My Comment: Personally, I don’t believe France’s François Hollande sends French troops to Mali only for “humanitarian feelings”. Like I remarked before, Mali has important gold and uranium resources that probably are part of the agreement with the Malian government. During the last decade, Europeans learned they have to act firmly if they don’t want all the mineral richness of Africa goes to the Chinese hands. (2013/01/11) 2 Recommendations

Story: French Troops Intervene in Mali to Support Local Army – Part 3

My Comment: From the times of World War II, the African mineral resources were strategic for the big powers. Recently, the rebel groups financed their military campaigns and terrorist actions selling minerals to different dealers, while they use the population dominated as slaves working in the mines. (2013/01/11) 1 Recommendation

Story: New Delhi Attack: The Victim's Story

My Comment: The reading of this story about the rape and killing of a young Indian woman in New Delhi gives us material for a serious reflection about the negligence and complicity of governments and authorities who don’t care for the safety of their people. Today, everybody talks with admiration about countries that are growing economically due to the success of their brains and the business of their companies. India is one of these emerging countries. From the other side, we try to avoid the talk about the shadows that also are growing in between the signals of progress and prosperity. How many similar cases to this rape never found justice for their victims? Due to the horrible martyrdom and death of “Bitiya” we learn a little about something that looks like normal in the streets of big cities that are a jungle of barbarians thanks to the corruption of their authorities and the deafness of a society who doesn’t answer to the cry for help. (2013/01/08) 15 Recommendations

Story: Friend of India Rape Victim Criticizes Police Response

Subject: The friend of the Indian woman who was victim of a brutal gang rape explained publicly details of the attack and the negative attitude of the police and doctors.

My Comment: When police and doctors don’t act immediately in cases of rapes or killing, they deserve to be punished like accomplices of the crime. (2013/01/06) 3 Recommendations

Story: Assad Vows to Fight On, Rejects Peace Efforts

Subject: Syrian President issued an aggressive call to war to defend the country and rejected international efforts to achieve the peace.  

My Comment: From my point of view, the speech of the Syrian President Bashar al-Assad at the Damascus Opera House was only propaganda to sell the image that "all is under control". (2013/01/06)

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THEME: Latin America

Story: Chinese Tech Titans Eye Brazil

Subject: Big Chinese technology companies focuses on Brazil in their plans to grow worldwide through the opportunities that the emerging markets offer.

My Comment: This story titled: “Chinese Tech Titans Eye Brazil” confirms something that I guessed some years ago. By the way, in 2005, after Lenovo Group bought the IBM PC unit, its CEO Yang Yuanqing met a group of American analysts in the installations of IBM Palisades, New York to introduce himself. At that time, I had the opportunity to talk personally with Mr. Yuanqing and he said that after the integration of IBM technology, he will focus a strong entrance in emerging markets to gain positions against the big American PC players (HP, Dell…). Today Lenovo is the No. 2 in the worldwide PC market and as part of its plan, last year it acquired the Brazilian electronic maker CCE with 4000 employees. Definitively, in the emerging markets, the historic prestige of the classic brands is easy to beat. (2013/01/12) 

Story: Ailing Chávez Seeks to Delay Inauguration

Subject: Venezuelan President Hugo Chavez didn’t participate in the inauguration of his new presidential term in Caracas because he is in a hospital in Cuba.

My Comment: Hugo Chávez always managed Venezuela like his private home since he led a coup d'état against President Carlos Andrés Pérez in 1992. But Venezuela is a country with more than 29 million inhabitants. (2013/01/09)

Story: Argentina Grounds President's Plane

Subject: Argentine President Cristina Kirchner rented an aircraft from United Kingdom to make a exotic trip to Asia instead of traveling in the presidential airplane.

My Comment: It is easy for President Cristina Kirchner to expend the money of the Argentine tax payers for a new exotic trip to countries like United Arab Emirates, Indonesia and Vietnam that have nothing in common with Argentina. Why expend US$880,000 for a weeklong trip in a risky mission? How many tons of grains and beef did she plan to sell? Ironically, she is renting an aircraft charter from United Kingdom. What kind of self-respect Ms. Kirchner has after the letter that she sent to British Prime Minister David Cameron a week ago? This parody puts Argentine worse than a classic “banana republic”.  (2013/01/08) 4 Recommendations

Opinion: Opinion: Venezuela After Chávez

My Comment: Venezuela after Chávez is uncertainty. More than one will want to be Chávez II but the leader didn’t prepare for succession in an organized way. For this reason I don’t believe that Diosdado Cabello and/or Nicolas Maduro will continue driving the country for a long period. History shows that Venezuela was always a country of strong leaders (“caudillos”). (2013/01/07) 5 Recommendations

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THEME: Economy, Business and Technology  

Story: Nokia Boosted by Brisk Lumia Sales

Subject: Nokia anticipates good sales of its new smart-phone Lumia based on Microsoft Windows 8.

My Comment: I read the news release posted by Nokia from Espoo, Finland. The preliminary financial information about its four quarter 2012 shows improvement in the sales of its units: Devices & Services and Nokia Siemens Networks. However until January 24, when the Finnish company will publish the definitive results, the data about the Lumia portfolio and the Asha smart-phone are not in detail. For example, today Nokia offers in the US the Lumia 820 from $49.99 and the Lumia 800 from $335.89. With these figures, it is not possible to determine trends. (2013/01/10) 1 Recommendation

Story: Google's Schmidt Presses North Korea on Web Barriers

Subject: After three days visiting North Korea, Google Executive Chairman Eric Schmidt didn’t give an explanation about the mission of his secret trip.

My Comment: The comments of Google Executive Chairman Eric Schmidt to reporters in Beijing after his three-day trip to North Korea look childlike. I don’t believe that Mr. Schmidt and the former New Mexico Gov. Bill Richardson traveled to that country only to say to the members of the government that “they must drop barriers to global Internet access if they hope to develop their economy.” From my point of view, the mission was more than a humanitarian trip or a pro-Internet campaign. (2013/01/10)

Story: Meet the Great Tech Busts of CES

Subject: The 2013 International Consumer Electronic Show was held in Las Vegas last week with the presentation of models of 3D printers, ultra HD televisions, digital tables, mobile devices and more. This year, Microsoft didn’t participate of the big show.

My Comment: Everybody who works in the technology industry knows that the Consumer Electronics Show always was an exhibition with a lot of noise, color and fun, but a little content with substance. A long series of prototypes introduced in Las Vegas never entered the market and others had a short life cycle before they disappeared. Normally, companies like Apple, Intel, IBM or HP organize their own events focused with developers and analysts of the industry in different moments of the year and at other locations. (2013/01/09)

Story: Sony Sets Sights on Smartphone Market

Subject: At the Consumer Electronics Show, Sony CEO announced plans to expand the mobile phone business of the Japanese maker across the world and recover the ground that Sony lost in the last few years.

My Comment: The 5% of market share that Sony has in the niche of smart-phones is a very small portion of the cake. Behind Samsung and Apple, nobody including Sony has guaranteed its near future. Sony will have to work a lot to consolidate as the Number 3 in the market. (2013/01/09)

Story: Apple Working on a Less-Expensive iPhone

Subject: Apple is working on the development of a cheap model of its smart-phone to compete in the low-entry level of the mobile phone niche. The initiative produced contradictory reactions in the market.

My Comment: If Apple doesn’t want the Android platform to take distance as the top leader of the smart-phone market, it also has to compete also in the low-entry level of the phone segment sharing its experience and components of its high-end niche. In the consumer electronics industry, the companies cannot increase revenues only with a selective group of customers. (2013/01/08) 1 Recommendation

Story: Huawei Sees Profit Rising 30%

Subject: The Chinese telecommunication company anticipated its profit grew 30% compared with a year ago. Two important competitors of Huawei are Ericsson and Alcatel Lucent. During the last few years, Alcatel Lucent has lost significant market share due to the advance of Huawei.

My Comment: If the Chinese Huawei Technologies continues growing in the way that it grew during the last few years, it will devour the portions of the cake of their western competitors. (2013/01/08)

Story: Nvidia Plans to Sell Its Own Gaming Device

Subject: NVIDIA, an important seller of components for videogame makers, plans to introduce its own videogame device.

My Comment: I don’t have any doubt that NVIDIA has an extraordinary experience in the development of components for videogames. Thanks to this knowledge, it can produce its own games without problems. However, the competition with its partners and customers could damage its first business. (2013/01/07 2 Recommendations