COMMENTS - 2013/04/21

WEEKLY BLOG COMMENTS (WBC) – No.60 V.1.1

DATES: 2013/04/14– 2013/04/21

ANALYST: Domingo Trassens

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Dear Friends:

The third week of April was shaken by the bombing attack at the Boston Marathon. Also other very important subjects were the explosion in Texas, the voting of the gun control bill in the Senate and the proposals about a new immigration law.

In the economic side, a series of technology companies – Intel, IBM, Yahoo, Nokia… - showed weak results for the period January-March 2013.

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 the top news and other themes of the week.

My comments are organized in the following sections: United States, Europe, The World (Asia, Africa, Middle East…), Latin America and Economy, Business, Technology.

DAT

April 21, 2013

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UNITED STATES

Story: Before Suspect's Capture, a Day on Lockdown

Subject: The manhunt of the two brothers from Chechnya who are the suspect bombing attackers at the Boston Marathon.

My Comment: Two young guys of 26 and 19 from Chechnya paralyzed Boston area for more than 4 days. This is a good subject for a book of terror. (2013/04/20) 3 Recommendations

Story: Opinion: The Brothers Tsarnaev – Part 1

Subject: Different images of the brothers Tsamaev since they arrived to the United States and after the bombing attack.

My Comment: “The hunt is over” but till now it is not possible to achieve serious “conclusions”.

The case is completely open. There are a lot of question marks:

-Why ()did they made the bombing attack?

-Who supported the two brothers?
-Who is behind them?

-And about IMMIGRATION, this case shows again that the entrance of refugees who come from countries destroyed by terrorist activities requires very special procedures. When the officers of Homeland Security give visas to people from areas with civil wars or totalitarian regimes, before they authorize the entrance into the country, they have to research more than twice if they are “criminals” disguised like “tender lambs”. (2013/04/20) 7 Recommendations

Story: Opinion: The Brothers Tsarnaev – Part 2

My Comment: Somebody suggested that probably the Chechen brothers had resentment... What kind of resentment could the youngest have?

According to the news, Homeland Security gave him American citizenship and the people of Boston, Massachusetts helped pay for his studies.

From my point of view, both had the criminality in their blood or they were “robots” of an extremist group. (2013/04/20) 11 Recommendations

  

Story: Democrats Regroup on Guns

Subject: After the voting of the gun control bill in the Senate, the Democrats try to regroup.

My Comment: The result of the Senate’s voting was a serious defeat for the promoters of the gun control bill.

Somebody said the voting was a “pyrrhic victory”. (2013/04/19) 2 Recommendations

Story: A Grim Day for a Small Town

Subject: A big explosion in a factory of a small town of Texas left a lot of deaths and damages.

My Comment: The title of this story says: “A Grim Day for a Small Town”. I would like to summarize the news of the Texas’s explosion and the Boston bombing attack with the expression: “A Grim Week for all the Country”.

Both tragedies touch us intimately with pain, death and panic. (2013/04/19) 3 Recommendations

Story: Opinion: Now He's After Your 401(k)

Subject: One analyst from Wall Street Journal suggests that the current administration of the White House wants to limit the high incomes of the retirees.

My Comment: The “social models” that tie your hands and restrict your possibilities to be who you want to be are totalitarian. (2013/04/18)

Story: Senate Scuttles Gun Limits

Subject: Before the voting of the background-check bill (gun-controls) different groups pressured the members of the Senate to pass the bill without objections.

My Comment: The background-check bill requires that everybody votes according to his/her own principles independently of the political game that we see behind this case. The country needs real solutions and not winners and losers. (2013/04/17) 3 Recommendations

Story: Nation's Oldest Marathon, and a Local Holiday Tradition

Subject: Two explosions of bombs put shadows at the Boston Marathon.

My Comment: The terrorism always wrecks the life of normal people, independently of the flags it lifts.

The Boston Marathon was a good target to generate popular panic in America, wounding and killing people.

These attacks are a serious alert for the country and an infamous crime against the people. (2013/04/16)

Story: Kerry Focuses on Iran, North Korea Leaders

Subject: During a conference in Japan, Secretary of State John Kerry focused Iran and North Korea like the same block due both countries work in the development of nuclear technology without the agreement of the international community.

My Comment: Personally, I don’t think it is a good idea to put North Korea and Iran in the same basket… (2013/04/15)

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EUROPE

Story: Serbia, Kosovo Reach Deal Ahead of EU Meeting

Subject: Serbia and Kosovo work to put down their disputes with the intention to be accepted as new members of the European Union.

My Comment: The preliminary accord between Serbia and Kosovo is an important step for a permanent peace across the Balkans countries. However, it is not enough to heal the wounds that remain open in the Serb and Muslim communities of the region. (2013/04/20)

Story: Merkel's Rivals Struggle To Find Election Foothold

Subject: In Germany, the candidate of SPD – Peer Steinbrück – for the September election attacks his rival Angela Merkel. 

My Comment: The September election in Germany is a duel between Angela Merkel and Peer Steinbrück. While everybody knows the good and bad sides of Angela Merkel, Mr. Steinbrück is a big question mark. … (2013/04/15) 1 Recommendation

  

Story: German Trial Spotlights Alleged Spies

Subject: Two Russians spies with Austrian passports and natives from Argentina and Peru respectively were found guilty of espionage against the western countries.

My Comment: These spies are lucky that they have been caught in Germany, a country where the jails are better than the average. (2013/04/14)

1 Recommendation

Story: Pope Begins Vatican Overhaul

Subject: Pope Francis began the overhaul of the cases of priest sexual abuse.

My Comment: We have to hope Pope Francis takes effective action against the priest sexual abuse cases. If the Catholic Church loses this opportunity, nobody will believe anymore in the institution.  (2013/04/14) 4 Recommendations

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THE WORLD:  Asia, Middle East, Africa…

Story: Musharraf Flees as Court Orders Arrest – Part 1

Subject: The former Pakistani dictator challenged the Islamabad High Court that ordered his arrest.

My Comment: The escape of Pervez Musharraf from the Islamabad High Court with military protection shows that the former Pakistani president has enough influence in the army institutions to challenge the judicial apparatus of the country and put in a checkmate to his political enemies. (2013/04/18) 

Story: Pakistan Ex-President Musharraf Is Arrested – Part 2

My Comment: After all the actions that we saw during the last few days, we have to suspect that former Pakistani President Pervez Musharraf returned to his country with clear political goals.

Since 2008, when Mr. Musharraf left power, Pakistan is living in chaos and with the “stain” of having given refuge to Osama bin Laden.

Under all these circumstances, Pervez Musharraf represents a possible important option for a lot of Pakistanis including members of the military institutions. (2013/04/19) 3 Recommendations

Story: Palestinian Prime Minister Fayyad Quits

Subject: Palestinian Prime Minister Fayyad resigned due to serious differences with other members of the government of Palestine. Mr. Fayyad was considered a “friend” of the western nations.

My Comment: Always the good politicians with professional qualifications are the target of corrupt people. 2013/04/04 2 Recommendations

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LATIN AMERICA

Story: Tensions Surge in Venezuela After Vote

Subject: Nicolás Maduro after his victory, assumed the office of Venezuelan president in the middle of serious complaints from the opposition that wanted a recount of the votes.

My Comment: The future of Venezuela looks gloomy but only the Venezuelans can modify their destiny. Now they will learn the consequences of regimes like the Chavismo. … (2013/04/15) 1Recommendation

Story: Political Tension Rises After Tight Venezuela Election

My Comment: Now Nicolás Maduro has to show if he really has the capability to lead Venezuela by himself. The “test” will be difficult because the country is divided and the opposition looks strong. … (2013/04/15) 2 Recommendations

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ECONOMY, BUSINESS, TECHNOLOGY

Story: TSMC Expects Lift from Smartphones, Tablets

Subject: Taiwan Semiconductor Manufacturing posted positive figures for its last financial quarter with good expectations for the current period.

My Comment: Today Taiwan Semiconductor Manufacturing (TSMC) is smiling while other technology companies cry.

Its case is very interesting. It works for others and the others are the providers of chips for the smart-phone niche.

TSMC is the largest dedicated independent semiconductor foundry (a chip fabrication plant).

One of the most important customers is Qualcomm, a strong provider of chips for the phone and tablet makers.

In brief, while the majority of the companies involved in the PC business are in trouble, the “revenues” of the members of the “chain” of the smart-phone sector grow. (2013/04/20)

Story: IBM Finds Itself Singing the Growth Blues

Subject: According to the story, IBM blames to the software business for its last poor financial results.

My Comment: The real news is IBM presented weak figures in the financial results of its first 2013 quarter.

Its total revenues were $23.408 billion, down 5.1% compared with the first 2012 quarter and its net income was $3.032 billion, down 1.1% also compared with the previous year.

Despite some comments of the story posted by Wall Street Journal we cannot blame the IBM Software unit for the bad results because the other key units of technology company: Global Technology Services, Global Business Services and Systems and Technology registered negative growths.

Really, all its business units declined with the exception of the Global Financing Division that grew 1.9%.

In summary, IBM showed a poor image like its operations and projects didn’t work well during the last quarter. (2013/04/20)

Story: Blackstone Ends Pursuit of Dell

Subject: The investor group that offered to pay the biggest price for the acquisition of the stocks of Dell ended its bid.

My Comment: The news says Blackstone ended its bid for Dell Inc paying $24.4 billion.

From my point of view, Michael Dell didn’t accept the offer because Blackstone wanted to change the management of the company.

I believe this was the conflictive point with Michael Dell who wants to continue as CEO of the company.

Meanwhile, the future of the PC maker continues uncertain. The decline of the personal computer business makes difficult any other solution. (2013/04/20)

Story: Apple Takes Another Tumble

Subject: Before the publication of the financial results of the last quarter, Apple anticipated its sales of iPhones were less than previous expectations.

My Comment: The title of this story: “Apple Takes Another Tumble” is more than dramatic. In the technology business, the ups and downs are normal to the industry. Really, these fluctuations don’t imply falls. (2013/04/19) 

Story: IBM in Talks to Sell Part of Its Server Unit to Lenovo

Subject: Some rumors say IBM is talking with Lenovo to sell its x86 Servers unit. Lenovo is the Chinese company that in 2005 bought the IBM PC unit.

My Comment: When IBM sees that one of its business units is not more profitable, it sells it. During the last ten years, the technology leader sold its printing systems to Ricoh, its hard disk unit to Hitachi and its PC package to Lenovo. (2013/04/19)

Story: Nokia's Turnaround Under Time Pressure

Subject: Nokia posted better financial results than in the previous quarters, but it registered losses again.  

My Comment: The fall of Nokia was deep due to its slow reaction in front of the advance of Apple and Samsung in the niche of smart-phones.

Now we cannot expect its financial recovery will be fast. It is important that in the last two quarters, the Finnish company improved its results.

Personally, I think Stephen Elop, Nokia CEO, has to strengthen the position of the Lumia in the segment of smart-phones, but without disregarding their other business lines. (2013/04/18)