WEEKLY BLOG COMMENTS – No.57
DATES: 2013/03/24– 2013/03/31
ANALYST: Domingo Trassens
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Dear Friends:
Hello! Today I would like to share with you a series of comments posted
by myself in the WSJ Journal Community during the last seven days about:
- Mark
Zuckerberg’s plans to enter into the political area;
- John Kerry’s trip to Afghanistan
-
The deals of Dell Inc. to go to private;
-
First Holy Thursday of Pope Francis;
and
other news about politics, economy and business in United
States
The comments are organized in the following sections: United
States Europe , The World
(Asia , Africa , Middle
East …), Latin America , Economy,
Business and Technology, and Nature.
DAT, April 31,
2013
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THEME: United States
Subject: Mark Zuckerberg, CEO
Facebook, plans to enter into the political arena through the debate of
immigration.
My Comment: It is not the business of Mr.
Zuckerberg to advise Republican and Democrat senators who are working on a new
immigration bill.
When more people - especially celebrities - try to put their "spoon" in the middle of crucial problems, solutions never come. (2013/03/27) 6 Recommendations
When more people - especially celebrities - try to put their "spoon" in the middle of crucial problems, solutions never come. (2013/03/27) 6 Recommendations
Subject: A lot of college
graduates are working in low-skill jobs according to some social surveys.
My Comment: The subject in discussion is the
college graduates working in low-skill jobs or with low-wages.
Since the
economic crisis of 2008-2009 the labor situation has changed dramatically. For
example during the crisis:
- A lot of companies reduced their payroll replacing employees with automatic technology tools or systems that require less high-qualified workers.
- Other companies merged with rivals, or outsourced some of their operations with contractors who hire technical and professional people working for a low wage or freelancers.
In both cases, the growth of the economy will not increase the level of high-wage employees in a significant way. (2013/03/26)
- A lot of companies reduced their payroll replacing employees with automatic technology tools or systems that require less high-qualified workers.
- Other companies merged with rivals, or outsourced some of their operations with contractors who hire technical and professional people working for a low wage or freelancers.
In both cases, the growth of the economy will not increase the level of high-wage employees in a significant way. (2013/03/26)
Subject: The North Korean regime
spreads its military threats against South Korea United States
My Comment: The regime of Pyongyang China
For this reason, I agree that
But I don’t believe
Subject: Secretary of State John
Kerry met Afghan President Hamid Karzai in Kabul United States
My Comment: After the series of verbal
aggressions of Afghan President Hamid Karzai against the United States
Will Mr.
Karzai value the new efforts of the White House to manage the relationships
between the two countries in a friendly way?
I have serious doubts that it makes sense to continue the dialogue with the Afghan President. (2013/03/25) 2 Recommendations
I have serious doubts that it makes sense to continue the dialogue with the Afghan President. (2013/03/25) 2 Recommendations
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THEME: Europe
Subject: French President François Hollande spoke on French TV trying to
show that the economy of his country is going well despite weak economic
signals.
My Comment: The optimistic speech of President
François Hollande on French TV doesn’t look consistent with reality.
He says that he will not increase taxes, but since he assumed the presidency a series of famous rich citizens left the country or changed their citizenship due to the high taxes imposed by his administration.
From the other side, Peugeot-Citroen and other French companies reported weak financial results in the last quarter.
Now this story comments that the French unemployment rate climbed to 10.6%. (Other sources say that is near 15%).
Weak sales of the big companies, high unemployment rate and taxes that push the rich people out the country are not signals of an economic recovery. (2013/03/30) 1 Recommendation
He says that he will not increase taxes, but since he assumed the presidency a series of famous rich citizens left the country or changed their citizenship due to the high taxes imposed by his administration.
From the other side, Peugeot-Citroen and other French companies reported weak financial results in the last quarter.
Now this story comments that the French unemployment rate climbed to 10.6%. (Other sources say that is near 15%).
Weak sales of the big companies, high unemployment rate and taxes that push the rich people out the country are not signals of an economic recovery. (2013/03/30) 1 Recommendation
Subject: Italian President
Giorgio Napolitano ponders alternatives to form a new government.
My Comment: In Italy
Everybody
knew that the mission of Mr. Monti will not be nice. However the people
didn’t give him the possibility to finish his work.
After that, the election showed the deep division in their way of thinking by the population.
After that, the election showed the deep division in their way of thinking by the population.
The only clear
conclusion is that the people like to shout but they don’t want effective
changes for the direction of the country.
And the
only Italian worried about the current political limbo is President Giorgio
Napolitano because he doesn’t want to have on his shoulder all the mess.
(2013/03/29)
Story: Pope Breaks From Tradition
Subject: The new Catholic Pope
broke from the tradition in the ceremonies of the Holy Thursday.
My Comment: Pope Francis started his leadership
of the Catholic Church returning to the most important lessons that Jesus gave
to his followers in the beginning of Christianity.
The Holy
Thursday ceremony was a good demonstration of the message that the new Pope
tries to spread across the Christian and non-Christian communities: Humility
first! (2013/03/29)
Subject: The government of Slovenia
My Comment: The news says that Slovenia
It looks good that somebody don’t ask for financial assistance from the EU authorities.
It looks good that somebody don’t ask for financial assistance from the EU authorities.
However, the
Slovenia’s problems are a new “sign” that the original plan of the European
Union was a fiasco because the majority of the EU members had a weak financial
foundation when they entered into the community and nobody put effective
filters in that moment. (2013/03/27)
Subject: The efforts to form a
government coalition in Italy
My Comment: The “ghost” of Silvio Berlusconi is
always present when other politicians want to rule Italy
The Italians have to move away from politicians who never fix their deep problems in the right way. (2013/03/27)
The Italians have to move away from politicians who never fix their deep problems in the right way. (2013/03/27)
Subject: The Cyprus
My Comment: The deal to preserve Cyprus
From the other side, the community is losing flexibility and its foundation is shaking in a way that nobody will be able to support for a long time if the parade of sick members continues. (2013/03/26)
From the other side, the community is losing flexibility and its foundation is shaking in a way that nobody will be able to support for a long time if the parade of sick members continues. (2013/03/26)
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THEME: The World: Asia , Middle East , Africa …
Comment: Story: Turkey Denies Deporting Syrians
Subject: Some rumors said that Turkey
My Comment: Living in a refugee camp is not
enjoyable regardless of the humanitarian efforts of the authorities of the
country that receive the refugees.
The Syrian
population who had the possibility to flee to Turkey
If the refugees create problems, they will close the door to other people who try to find a place for living distant from the battlefield thatSyria
If the refugees create problems, they will close the door to other people who try to find a place for living distant from the battlefield that
Subject: The new prime ministers
of Japan South Korea UK
My Comment: Ms. Park says that she admires
Margaret Thatcher, but if she wants to rule South Korea
During the
last decade, South Korea
It will not
be good that due to the war game of North Korea
Subject: Vietnamese fishermen
claim against Chinese attack in the South Asian seas.
My Comment: If all the events continue moving
in the same direction, in a short time, China South Asia .
During the
last few years, China
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THEME: Latin America
Subject: Argentina
My Comment: The behavior of the current
government of Argentina
The
irresponsibility of the management of public domestic and international
compromises is very serious.
The negative attitude of the Rose House administration gives a bad reputation to the country and makes more complicated the agreements with creditors. (2013/03/27)
The negative attitude of the Rose House administration gives a bad reputation to the country and makes more complicated the agreements with creditors. (2013/03/27)
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THEME: Economy, Business and Technology
Subject: Dell Inc is in the
process to go private but its future doesn’t look well.
My Comment: After more than one month dealing
different ways to go private, now Dell Inc. is worse than in the beginning of
the rescue process.
The bidders
are only trying to catch the best pieces of a company that was a great
promise of success 15 years ago.
The US$24.4 billion offer to go private is less than the market value that Dell Inc achieved during the time it was climbing the hill with its original business model of a direct sales company.
All the last facts show that in this moment Dell is in the decline segment of its life cycle.
Independently of the current deals, the future of the company as a technology maker looks grim.
We cannot imagine a new flourishing period after all the mistakes that Michael and his advisers committed when the inflection point of the PC business marked the start of the decline curve of the personal computers.
In that moment, Michael Dell had to use all the resources of the company to move its business to new heights, but he didn’t have the ability to do this job.
The US$24.4 billion offer to go private is less than the market value that Dell Inc achieved during the time it was climbing the hill with its original business model of a direct sales company.
All the last facts show that in this moment Dell is in the decline segment of its life cycle.
Independently of the current deals, the future of the company as a technology maker looks grim.
We cannot imagine a new flourishing period after all the mistakes that Michael and his advisers committed when the inflection point of the PC business marked the start of the decline curve of the personal computers.
In that moment, Michael Dell had to use all the resources of the company to move its business to new heights, but he didn’t have the ability to do this job.
Now Michael
Dell is only fighting for his personal survival. He is very busy making
calculations how he will pay his bills. He has not more time to focus his mind
on the re-creation of his business.
With this
panorama, we don’t believe Dell Inc. as a computer maker will survive for a
long time. All looks like it is ready to walk soon to the cemetery or
dismantlement. (2013/03/30)
Subject: Digital tablets are
using to take orders in a bakery instead of employees who do the same job.
My Comment: It is not new that technology helps
to cut job positions in all sectors of the economy.
And for the new generation of users of digital devices it is not a problem to type directly an order on a digital tablet instead of explaining what they want to an employee at a counter of a retail shop or fast food store.
Additionally, the self-service tablets will reduce the waiting time of customers in bakeries and food stores during rush hours.
And for the new generation of users of digital devices it is not a problem to type directly an order on a digital tablet instead of explaining what they want to an employee at a counter of a retail shop or fast food store.
Additionally, the self-service tablets will reduce the waiting time of customers in bakeries and food stores during rush hours.
Definitively,
tablets can do the same job as employees who take orders. (2013/03/28)
Subject: In the last fiscal
quarter, Research In Motion returned to profitability.
My Comment: Research In Motion (BlackBerry)
gave good news reporting a profit of US$98 million in its fiscal fourth quarter
after last January it introduced Z10 in the UK Canada
It looks like the efforts made during 2012 to reorganize the company and redefine its smart-phone platform are giving BlackBerry new chances.
At least, thanks to the good features of the Z10 smart-phone and its new operating system, BlackBerry is again fighting with competitors like Galaxy S4, iPhone 5 and Nokia’s Lumia 920.
Now we have to observe if during the current quarter, Z10 helps BlackBerry to increase the sales of new devices in theUnited States
Despite the massive fall of subscribers during the last year, BlackBerry maintains important numbers of customers in some markets across the world. (2013/03/27) 5 Recommendations
It looks like the efforts made during 2012 to reorganize the company and redefine its smart-phone platform are giving BlackBerry new chances.
At least, thanks to the good features of the Z10 smart-phone and its new operating system, BlackBerry is again fighting with competitors like Galaxy S4, iPhone 5 and Nokia’s Lumia 920.
Now we have to observe if during the current quarter, Z10 helps BlackBerry to increase the sales of new devices in the
Despite the massive fall of subscribers during the last year, BlackBerry maintains important numbers of customers in some markets across the world. (2013/03/27) 5 Recommendations
Story: Oracle Overhauls Server Line
Subject: Oracle is updating its
hardware products based on Sun Microsystems platform.
My Comment: Since Oracle bought Sun
Microsystems, we really didn’t hear any important news about hardware from the
buyer. I don’t believe that Larry Ellison will be able to revitalize the Sun
platform. (2013/03/27)
Subject: Yahoo is buying a
software company founded by a teenager who is 17 year old.
My Comment: In the technology arena, the current
state of art is opening doors to brilliant brains independently of their age,
race and social status.
The problem
is sometimes the inventions and creations are stolen by opportunists or dealers
without ethical principles and those who really are the inventors or creators
don’t receive a fair payment for their achievements and contributions.
In this
case, according to the information available, Nick D’Aloisio was lucky finding
a buyer like Yahoo. (2013/03/26) 4 Recommendations
